Latest News Archive

  • Changes to your Plan’s investment lineup. Effective September 1, 2020, certain investment options currently offered through the Plan will be closed and all existing balances and future contributions will be transferred to new investment options. To review the affected investment options, please review the attached notice sent to all current participants through email or mail on July 31, 2020.

    Additionally, the Plan will introduce a new investment option naming convention that is intended to better align with each option’s investment category and objective.

  • Important Plan Design Changes. Several major changes have been made to the way the State of Illinois Deferred Compensation Plan is administered. A new Enrollment Brochure has been created to reflect those changes.

    Effective June 15, 2020, participants must visit the T. Rowe Price website or call (888) 457-5770 to request a salary deferral change or to enroll in the Plan. CMS will no longer accept Enrollment or Change forms, except in the case of lump sum deferrals. Enrollments and salary deferral changes will be effective the first pay period of the following month. Revocations will be effective as soon as administratively possible.

    Effective June 15, 2020, participants must visit the T. Rowe Price website to designate or change beneficiary elections. Participants may also call (888) 457-5770 to request a paper form by mail. Current beneficiary elections on file with CMS will remain in effect until a new election is made through T. Rowe Price.

    Effective July 1, 2020, participants may elect to defer a percentage of their pre-tax gross compensation. This new deferral option is in addition to the current method of electing a flat contribution amount. A participant’s current deferral method will not change unless they make a new election. To elect a percentage deferral, participants must visit the T. Rowe Price website or call (888) 457-5770.


  • Automatic Enrollment. Public Act 101-0277 amended the Illinois Pension Code to require automatic enrollment of certain new hires into the State of Illinois Deferred Compensation Plan (“Plan”).

    Effective July 1, 2020, any new State of Illinois employee that is a member of the State Employees Retirement System (SERS), the General Assembly Retirement System (GRS), or the Judges Retirement System (JRS), and has not contributed to one of these retirement systems prior to July 1, 2020, will be automatically enrolled in the Plan.

    New employees that are subject to automatic enrollment will have 30 days from their start date to opt out of the Plan. If a new employee is automatically enrolled, they will have 90 days from their enrollment to request a refund of their contributions. Plan participants may revoke their contributions at any time.


  • CARES Act Changes. In accordance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the State of Illinois Deferred Compensation Plan (“Plan”) is enacting several changes to assist qualified individuals who have experienced adverse financial consequences due to the coronavirus. To determine if you are a qualified individual, please refer to the attached IRS guidance.

    Effective May 29, 2020, qualified individuals may request penalty-free distributions up to a total of $100,000 (not to exceed the participant’s account balance) through December 31, 2020. Additionally, qualified individuals may defer loan repayments due through December 31, 2020. Finally, certain required minimum distributions received in calendar year 2020 may be eligible for a rollover back into the plan.

    For more information on coronavirus-related distributions, loan repayment suspension, or the rollover of required minimum distributions, please call T. Rowe Price at 1-888-457-5770. Representatives are available to assist you on business days from 6 a.m. to 9 p.m. Central Standard Time.

  • Addition to your Plan’s investment lineup. Effective July 1, 2020, the Vanguard Target Retirement 2065 Trust will be available to investors in the Plan. Find additional details on this, and current, Target Retirement Trust funds here. A fact sheet may be found on the Fund Descriptions page.

  • The Illinois Deferred Compensation Plan has adopted a default investment policy which is effective immediately.  This policy will only affect participants who fail to select their own investment options.  If an enrollment or transfer in form is received without any investment being selected this policy will allow the Plan to automatically select an investment fund by default.  The investment fund selected will be the Vanguard Targeted Retirement Date fund closest to the year in which the participant turns 65.  See the attached notice for more information.

    Annual Default Investment Notice 

  • Deferral limits will increase for 2020. The IRS announced that pension limitations governing the 457 plans will increase for 2020 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $19,500 which increases the Special Catch-up limit to $39,000.  The age 50 catch-up contribution limit will also see an increase from $6,000 to $6,500 making the total contribution limit for those aged 50 and older $26,000 for the 2020 tax year.             

  • Deferral limits will increase for 2019. The IRS announced that pension limitations governing the 457 plans will increase for 2019 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $19,000 and the Special Catch-up limit will therefore increase to $38,000.  The age 50 catch-up contribution limit will remain at $6,000 making the total contribution limit for those aged 50 and older $25,000 for the 2019 tax year.

  • Deferral limits will increase for 2018. The IRS announced that pension limitations governing the 457 plans will increase for 2018 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $18,500 and the Special Catch-up limit will therefore increase to $37,000.  The age 50 catch-up contribution limit will remain at $6,000 making the total contribution limit for those aged 50 and older $24,500 for the 2018 tax year.

  • Deferral limits will remain the same for 2017. The IRS announced that pension limitations governing the 457 plans will remain the same for 2017 as the increase in the Consumer Price Index was not sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will stay at $18,000. The catch-up contribution limit for employees aged 50 and over will remain at $6,000, and the Special Catch Limit is $36,000. 

  • Roth 457 is here.  A designated Roth account was added to the Deferred Compensation Plan in January of 2016.  The Roth provision allows employees to make after-tax contributions to their account which become available for withdrawal after separation of employment.  Then, both Roth contributions and associated earnings can be withdrawn tax-free when you take a qualified distribution. 

    We are accepting enrollments in the Roth 457 for payrolls effective the month after the month of form submission. Complete this Enrollment Form and indicate the amount you wish to contribute each pay in total to the Roth account, even if you currently defer to a pre-tax Deferred Compensation account.  If you want to stop your current Deferred Compensation deferrals, you must complete the Change Form revoking your participation at the same time you are enrolling in the Roth.

    Additional information can be found in our latest newsletter and here.

  • Investment and Fee Structure Changes Coming  The Illinois State Board of investment (ISBI), is making some important Plan changes as a result of an in-depth review of the Deferred Compensation Plan’s performance and structure.  The main goal is to provide investment excellence and empower participants with the very best retirement planning solutions.  A letter from ISBI along with a detailed brochure was mailed to all participants in the Plan.  The changes will take effect beginning March 30, 2017, 3p.m. CT.
    Educational meetings will be available for participants beginning March 8, 2017, through March 23, 2017. Click the links for the meeting locations and the dates for the on-site meetings and webinars.

  • Distribution Reminder  Installment payments scheduled for the month of January 2017 will be sent in the third week of the month. Please note that all scheduled future installments, with the exception of January installments, will continue to be distributed on the first business day of each month.

  • Changes to your Plan’s investment lineup.  The Wellington Diversified Growth Portfolio and Vanguard Prime Money Market Fund are being replaced in the Plan. Learn more in this brochure that was mailed to affected participants.  Archived 11/07/2016

  • Deferral limits will remain the same for 2016. The IRS announced that pension limitations governing the 457 plans will remain the same for 2016 as the increase in the Consumer Price Index was not sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will stay at $18,000. The catch-up contribution limit for employees aged 50 and over will remain at $6,000, and the Special Catch Limit is $36,000.

  • Income Tax Information and Deferral Rates for 2015.  2015 Income tax information regarding the annual IRS limits, how to report contributions to and withdrawals from Deferred Compensation on your 2014 income tax return, and rules for age 70 1/2 required minimum distributions are explained in this helpful document.

  • *Important!!* Plan Changes may require your action! As part of its commitment to helping you prepare for a more secure retirement, the Illinois State Board of Investment is making several investment enhancements to the Deferred Compensation Plan in the coming months. Click each link below to learn more about the investment changes and plan wide re-enrollment.


  • Deferral limits have been increased for 2015. The IRS announced that pension limitations governing the 457 plans will increase for 2015 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment. Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $18,000. The catch-up contribution limit for employees aged 50 and over who participate will increase to $6,000. 10/28/2014

  • Deferral limits remain unchanged for 2014. The IRS announced that pension limitations governing the 457 plans will remain unchanged because the increase in the Consumer Price Index did not meet the statutory thresholds for its adjustment. Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation remains unchanged at $17,500. The catch-up contribution limit for employees aged 50 and over who participate will remain unchanged at $5,500. 11/4/2013

  • Investment changes: Three common trust funds were added January 2, 2013, to the investment option lineup and three existing investment options are changing investment structure from mutual funds to separate accounts.  

  • Participant loans: Plan loans allow participants to access money in their plan account for a financial emergency or a major purchase before they retire. Participants must have a minimum balance of $2,000 in order to apply. Interested participants must contact T. Rowe Price at rps.troweprice.com or at (888) 457-5770 to initiate a loan.

 

 

 

Last Updated 01/04/2021