Dear Colleagues,
On April 6, 2010, I informed you that the process for making up SURS contributions for furlough days was finalized. A fact sheet describing the process is posted on the SURS website at <http://www.surs.com/pdfs/furloughUI.pdf>. In addition, a link to the fact sheet is located at <https://hr.uillinois.edu/PolicyCompliance/PolicyLibrary/HRPolicy/Furlough.cfm>.
Employees have asked how to make up contributions for furlough days on a pre-tax basis to SURS. After consulting with SURS, the only available method for a SURS member to make up contributions for furlough days on a pre-tax basis is 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). Payroll deduction, installment payments, and other payment methods are not available to make up contributions for furlough days.
SURS cannot accept a rollover that exceeds the applicable make up contribution amount. Therefore, if a SURS member wishes to make up contributions for a furlough day with a rollover, SURS must first compute the exact cost and provide the member with that cost and applicable paperwork so that the correct amount can be rolled over from an eligible retirement plan to SURS.
The make up contribution election form made available beginning June 1st will instruct SURS members who wish to make up contributions for furlough days with a rollover to contact the SURS office and request the cost to be calculated. SURS cannot calculate the cost prior to June 1, 2010. Therefore, SURS members who wish to roll over funds should contact SURS on or after June 1, 2010.
Please be advised that the impact of furlough days on SURS benefits varies significantly between employees, based on years of SURS participation, SURS retirement plan eligibility, earnings history, and retirement date.
Maureen M. Parks
Assistant Vice President, University Human Resources
