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This annual notice summarizes the terms and conditions of the University of Illinois Supplemental 403(b) Retirement plan. Please read the notice carefully and contact your campus UPB Benefits Services office with any questions.
The University of Illinois (“The University”) sponsors the Supplemental 403(b) Retirement Plan (“The Plan”).
The Plan is a voluntary supplement to the State Universities Retirement System (SURS) pension designed to allow eligible employees an additional retirement benefit.
Participation in the Plan does not reduce any University benefits based on full salary, such as SURS, life insurance, disability, or survivor benefits.
All common law employees of the University who receive compensation reportable on a Form W-2 are eligible to participate in the Plan.
Employee must elect to contribute at least $200 each year.
Employees not eligible to participate in the Plan are non-resident aliens with no U.S. source income.
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.
Contributions may be designated as a percent of salary or as a flat dollar amount up to the maximum limits per IRS regulations.
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 detailed below:
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:
Post-Tax (Roth) Contributions – Federal and State income taxes are withheld from Roth contributions at the time that they are contributed to the Plan. 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:
Contribution Limits for 2015 Calendar Year
Basic Elective Contribution Limit
Age 50+ Catch-Up Contribution
15 Years of Service Catch-Up Contribution
* Employees eligible for the 15 years of service catch-up will receive a communication in March confirming their eligibility. 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 full-time 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. Questions about your contribution limit should be directed to your campus UPB Benefits Services office.
The 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.
To Enroll or Modify Deferral Elections
Eligible employees may begin participating in and make changes to the Plan at any time. To enroll in the Plan, an employee must complete both:
Contact your campus UPB Benefits Services office or one of the approved vendors directly with questions or for help enrolling in the Plan.
UPB Benefits Services
This notice is provided as a source of information and does not constitute legal, tax, or other professional advice. If legal advice, tax advice, or other professional assistance is required, the services of a professional advisor should be sought. Every effort has been made to make this notice as thorough and accurate as possible. However, there are other legal documents, laws, and regulations that govern the operation of the Plan. It is understood that in the event of any conflict, the terms of the Plan document, applicable laws, and regulations will govern.
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