The University of Illinois (the “University”) sponsors the University of Illinois Supplemental 403(b) Retirement Plan (the "Plan"). Eligible employees of the University can voluntarily elect to defer a portion of their compensation to the Plan to supplement their retirement savings.
The Plan is a supplement to the State Universities Retirement System (SURS) pension. Participation in the Plan does not reduce any University benefits based on full salary, such as SURS, life insurance, disability, or survivor benefits.
Generally, all common law employees of the University who receive compensation reportable on a Form W-2 are eligible to participate in the Plan, so long as the employee elects to contribute at least $200 each year. The only employees not eligible to participate in the Plan are non-resident aliens with no U.S. source income.
An employee can elect to defer a portion of his or her compensation to the Plan on a pre-tax and/or post-tax (Roth) basis.
· Pre-Tax Contributions - - Both Federal and State income taxes are deferred on the contributions and any earnings thereon until distributed from the Plan. Distributions are taxed as ordinary income for Federal tax purposes. However, distributions are not taxed by the State of Illinois if distributions are made (i) in accordance with Plan provisions, (ii) on or after the participant has attained full retirement age, and (iii) while the participant is a legal resident of the State of Illinois.
· Post-Tax (Roth) Contributions - - Federal and State income taxes are withheld from Roth contributions at the time that they are contributed to the Plan. However, contributions and any earnings thereon are not subject to Federal and State income taxes upon distribution if a five year period has passed since Roth contributions were first made to the Plan and the distribution is a “qualified distribution”. A qualified distribution is a distribution (i) made on or after the date on which the participant attains age 59 ½, (ii) made to a beneficiary on or after the death of the participant, or (iii) attributable to the participant being disabled.
Employee contributions to the Plan can be allocated among the investment options offered by any approved vendor under the Plan. Employees are 100% vested in their accounts under the Plan at all times.
Annual contributions to the Plan are limited per IRS regulations. The contribution limits for the 2013 calendar year are:
Basic Elective Contribution Limit - $17,500
Age 50+ Catch-up Contribution - $5,500
15 Years of Service Catch-up Contribution - $3,000*
* The 15 years of service catch-up contribution applies before the age 50+ catch-up, and is based on a formula that takes into account all past contributions to the Plan and the employee's total years of service to the University. The maximum 15 years of service catch-up available is $3,000 per year up to a $15,000 lifetime benefit, but an employee's actual catch-up may be lower than this maximum. If you wish to defer more than $17,500 ($23,000 if age 50 or older), please contact the UPB Benefits Services office on your campus to determine if you are eligible for the 15 years of service catch-up.
Eligible employees may begin participating in the Plan at any time. To enroll in the Plan, an employee must complete both (i) an application with an approved vendor to open an account and (ii) a Salary Reduction and/or Redirection Agreement (SRA) to elect the contribution amount. Employees can access the 403(b) Plan Enrollment Guide at https://nessie.uihr.uillinois.edu/pdf/benefits/403bEnroll.pdf. The SRA can be completed online at https://nessie.uihr.uillinois.edu/cf/benefits/index.cfm?Item_ID=136. Contributions may be designated as a percent of salary or as a flat dollar amount. The SRA will apply only to amounts earned after enrolling in the Plan, and an employee's election under the SRA will continue until the SRA is modified or revoked by the employee.
To Modify a Deferral Election
Employees may increase, decrease or stop their contributions to the Plan at any time. Employees may also change the approved vendor to which their contributions are made at any time. Access the SRA using the link provided above to make these changes.
The current approved vendors under the Plan are Fidelity Investments and TIAA-CREF. Employees should contact each vendor for information about the Plan investment options and services it offers.
· Fidelity Investments – Fidelity offers a wide range of mutual funds as Plan investment options. Instructions for opening a Plan account online with Fidelity are available at http://www.plan.fidelity.com/uofi403b.
· TIAA-CREF –TIAA-CREF offers a wide range of fixed and variable annuities and mutual funds as Plan investment options. Instructions for opening a Plan account online with TIAA-CREF are available at http://www1.tiaa-cref.org/tcm/uofi403b/.
Contact your campus UPB Benefits Services office or one of the approved vendors directly with questions or for help enrolling in the Plan. A paper copy of this notice is also available at your campus UPB Benefits Services office.
UPB Benefits Services Offices
· Email: firstname.lastname@example.org
· Urbana: 217-333-3111
· Chicago: 312-996-6471
· Springfield: 217-206-7144
· Fidelity Investments: 800-343-0860
· TIAA-CREF: 800-842-2776