Dear Colleagues,
In April, you received information about the process for making up SURS contributions for furlough days. An election form, which allows you to make up these contributions, is now available on the SURS website at http://www.surs.org/pdfs/furlough_leform.pdf. In order to avoid incurring interest charges on the missed SURS contributions, this leave election form must be completed and the payment submitted to SURS no later than June 30, 2010.
The decision to make up contributions to SURS is entirely voluntary, and is solely your decision based upon your unique retirement needs. Make up contributions (and any applicable interest) may be made now, later, or not at all. However, if you intend to do this, the decision must be made before an employee begins receiving SURS benefits. And, it is important to understand that interest charges begin accruing on June 30, 2010, which will impact the cost of these makeup contributions.
STEPS for MAKING UP SURS CONTRIBUTIONS
1. Complete the SURS special leave election form (located on their website) between June 1, 2010 and June 30, 2010 to avoid incurring interest charges. Employees required to take 10 furlough days should wait until June 11, 2010 to complete their election form and corresponding payment so that all furlough days have been reported to SURS.
Visit http://www.surs.org/pdfs/furlough_leform.pdf to complete the election form and obtain an estimate of your payment. You will need to know your daily rate and the number of furlough days taken in order to complete this form. To determine your daily rate, please visit https://hr.uillinois.edu/PolicyCompliance/PolicyLibrary/HRPolicy/FurloughFAQ_CompLeave.cfm#calculated. Employees who do not have internet access may obtain an election form by contacting SURS directly.
2. Submit your payment to SURS no later than June 30, 2010. (Postmark dates on or before June 30th will be accepted.) The leave election form will assist you in calculating the estimated amount due, and will provide you with instructions for submitting payment to SURS.
3. SURS will mail a receipt to confirm posting of funds. Due to the increased volume of payments that SURS may receive due to this process, your patience is requested as they compute the actual cost and post the payment. You may also receive a refund for any overpayment or a bill for any difference due to underpayment.
PRE-TAX MAKE UP CONTRIBUTIONS
Employees who wish to make up contributions on a pre-tax basis may only do so with a rollover contribution (rollover) from an eligible retirement plan. A rollover is a transfer of funds from one eligible retirement plan to another (e.g., a transfer of funds from an IRA or 403(b) plan to SURS). Employees who wish to make up contributions for furlough days with a rollover must contact SURS directly. SURS will provide the employee with the exact cost and applicable paperwork so that the employee has the correct amount rolled over from an eligible retirement plan to SURS. Please contact SURS at 1-800-ASK SURS for further information about this option.
MAKE UP CONTRIBUTIONS AFTER JUNE 30, 2010
If you choose to make up 2009/2010 furlough contributions to SURS after June 30, 2010 you must contact SURS to request the cost. SURS will compute the actual cost for the reported furlough days based on the official information supplied by the University and provide the cost to the employee. The amount of this payment would include interest at the SURS effective rates up through the date the payment is received by SURS.
EMPLOYEES PARTICIPATING IN A VOLUNTARY SEPARATION/RETIREMENT PROGRAM
Employees who are participating in the Urbana Voluntary Separation Incentive Program (VSIP) or Voluntary Retirement Program (VRP), or any other program which results in the reimbursement of furlough days may not make up contributions to SURS for furlough days. If you are participating in one of these programs you will receive additional information from your campus HR office.
FURTHER INFORMATION
A fact sheet describing the process in detail is posted on the SURS website at http://www.surs.com/pdfs/furloughUI.pdf. In addition, links to this fact sheet, as well as previous communications and frequently asked questions can be found on the University furlough website at https://hr.uillinois.edu/PolicyCompliance/PolicyLibrary/HRPolicy/Furlough.cfm.
To contact SURS, please call 800-ASK-SURS (800-275-7877) or 217-378-8800.
Maureen M. Parks
Assistant Vice President, University Human Resources
