TRADITIONAL PLAN MEMBER GUIDE
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
TRADITIONAL PLAN MEMBER GUIDE
SURS
STATE UNIVERSITIES RETIREMENT SYSTEMSURS
MISSION STATEMENT
TO SECURE AND DELIVER THE
RETIREMENT BENEFITS PROMISED
TO OUR MEMBERS.
This booklet is intended to serve only as a brief summary of the provisions
of the law governing the State Universities Retirement System. It should
not be considered a substitute for the provisions of the law, which are set
forth in Articles 1, 15, and 20 of the “Illinois Pension Code.” The provisions
of the law prevail over any statements, errors, or omissions of this booklet.
The benefits in this booklet pertain to the Traditional Benefit Package.
A Portable Benefit Package Guide and a Retirement Savings Plan
(RSP) Guide are also available as separate publications to explain the
benefits pertaining to those options.TABLE OF CONTENTS
APPLICATION OF CHANGES IN THE LAW.....................................................................................1
INTRODUCTION..................................................................................................................................1
ELIGIBILITY.........................................................................................................................................1
CONTRIBUTIONS................................................................................................................................2
Employee Contributions
Maximum Pensionable Earnings
Social Security
Employer Contributions
SERVICE CREDIT.................................................................................................................................2
PART-TIME EMPLOYMENT...............................................................................................................3
QUALIFYING FOR MORE SERVICE CREDIT..................................................................................3
Leaves of Absence
Disability Leave................................................................................................................................4
Unused Sick Leave
Prior Service With Another SURS-Covered Employer....................................................................5
Military Service
Military Leave
Purchase of Military Service Credit
Other Public Employment (OPE)
Eligibility....................................................................................................................................6
Reciprocity With Other Systems.......................................................................................................6
How Your Benefit Will Be Calculated Under Reciprocity
Repayment of a Separation Refund..................................................................................................7
Effective Rate of Interest
CLAIMING YOUR BENEFITS.............................................................................................................7
DISABILITY BENEFITS.......................................................................................................................8
How to Apply for Benefits
When Disability Payments Begin
Your Disability Benefit Amount
Benefit Reductions and Other Limitations........................................................................................9
How Participation in a Reciprocal System Affects Your Disability Benefit
How Long Disability Benefits Last
If You Return to Work and Become Disabled Again......................................................................10
Options Available After Your Disability Benefit Stops
Eligibility for Other Benefits During DisabilityDISABILITY RETIREMENT ANNUITY (DRA)...............................................................................10
How to Apply for Benefits
DRA Payments and Amount
How Long DRA Benefits Last........................................................................................................11
Eligibility for Other Benefits While on DRA
BENEFITS PAID AFTER YOUR DEATH..........................................................................................11
Designating a Beneficiary
If You Die Before Retirement
Death Benefits
Survivor Benefits Before Retirement........................................................................................12
Benefit Amount
Automatic Annual Increase.......................................................................................................13
If You Die After Retirement or DRA..............................................................................................13
Death Benefits
Survivor Benefits After Retirement or DRA
Benefit Amount
Automatic Annual Increase
Supplemental Minimum Annuity Guarantee............................................................................14
RETIREMENT BENEFITS..................................................................................................................14
FINAL AVERAGE EARNINGS..........................................................................................................14
HOW YOUR RETIREMENT BENEFIT IS CALCULATED.............................................................15
General Formula
General Formula Tables...................................................................................................... 16-17
Early Retirement Reduction......................................................................................................17
Money Purchase Calculation..........................................................................................................17
Actuarial Chart................................................................................................................................18
Minimum Annuity Formula............................................................................................................19
Supplemental Minimum Annuity Guarantee
Reversionary Annuity.....................................................................................................................20
Special Features for Police Officers and Firefighters......................................................................21
Police Officer Defined
Employee Contributions
Retirement Benefits
Eligibility for Special Formula.................................................................................................22
How the Police Officer & Firefighter Benefit is CalculatedAPPLYING FOR YOUR RETIREMENT ANNUITY.........................................................................22
Estimate Requests...........................................................................................................................23
Employer Information
Survivor Contribution Refund
YOUR ANNUITY PAYMENTS..........................................................................................................23
Your First Payment
Direct Deposits
Income Tax Information..................................................................................................................24
Federal Income Tax
State Income Tax
Mandatory Distributions
Employment After Retirement
Automatic Annual Increase.............................................................................................................25
HEALTH INSURANCE.......................................................................................................................25
Community College Retiree Health Insurance
State of Illinois Retiree Health Insurance.......................................................................................26
APPLYING FOR A REFUND IF YOU LEAVE SURS.......................................................................26
Employer Information.....................................................................................................................27
Amount of Refund
Taxability of a Refund
Rollover of a Refund
OTHER INFORMATION.....................................................................................................................28
Loans, Garnishment, Bankruptcy
Divorce
Appeal Procedure
Confidentiality
Benefit Summary Statements
Newsletter.......................................................................................................................................29
SURS Website
Member Website
CONTACTING SURS..........................................................................................................................29
Telephone
Fax
CURRENT SURS-COVERED EMPLOYERS....................................................................................30
SURS LOCATION MAP......................................................................................................................31APPLICATION OF SURS Traditional Benefit Plan
CHANGES IN THE LAW This is the historical SURS defined benefit retire-
ment plan. Until 1998, it was the only SURS plan
Generally, changes in the retirement law are appli- available. It provides lifetime retirement benefits
cable only to persons who are contributing mem- and provides for a survivor benefit at no additional
bers on or after the effective date of legislation. cost. However, the separation refund feature is not
If you terminated your employment status before as generous as the Portable Benefit Plan.
the effective date of the legislation, the changes
will not be applicable to you unless the legislation SURS Portable Benefit Plan
specifically provides for retroactive application.
This is also a defined benefit retirement plan that
Similarly, the date you first become a participant has much in common with the Traditional Benefit
with SURS or another eligible Illinois retirement Plan. It provides a more generous separation re-
system covered under the Illinois Retirement Sys- fund if you leave the System. However, the provi-
tems Reciprocal Act determines your eligibility sions for survivor benefits require a reduction to
for SURS benefits and vesting requirements. It is the retirement and death benefits.
important that you notify SURS if you participated
in another Illinois retirement system or if you had SURS Retirement Savings Plan (RSP)
previous participation with SURS but accepted a
This is a defined contribution plan that establishes
refund (see Page 6 for a list of the reciprocal sys-
an account in your name into which your contribu-
tems). In some cases, it may be necessary for the
tions and the employer (state of Illinois) contribu-
refund to be repaid to allow SURS to recognize
tions are placed. You decide how your funds will
the prior participation when considering eligibility.
be invested, selecting from a variety of mutual
Example: If you first began participation prior to funds and variable annuities.
Jan. 1, 2011, you would be considered to be a Tier
Comprehensive information about the three retire-
I member. If you first began participation on or
ment options can be found on the Internet at www.
after Jan. 1, 2011, you would be considered to be
surs.org or in the Retirement Choice Election
a Tier II member.
Packet available through SURS.
INTRODUCTION ELIGIBILITY
SURS is a qualified 401(a) retirement plan that
SURS covers all faculty and support staff of
provides retirement, disability, death and survivor
Illinois public higher education including uni-
benefits to eligible SURS participants and annui-
versities, community colleges and other related
tants. SURS members must choose one of three
agencies.
retirement options:
Your employer will determine your eligibility to
1. Traditional Benefit Plan
participate in SURS. Generally, you will partici-
2. Portable Benefit Plan pate if your position requires you to work con-
3. Retirement Savings Plan (RSP) tinuously for at least one academic term or four
New members must choose a retirement plan with- months, whichever is less, and your employment
in six months from the date SURS receives their is not temporary, intermittent, or irregular. Your
certification of employment from the employer. SURS participation ends on the date you retire
Your choice is permanent and cannot be changed. or terminate employment with a SURS-covered
employer.
Information is sent to all new members, along with
an election form, to help you make your choice. If You are not eligible to be covered by SURS if,
you are a new member, please review the informa- among the criteria:
tion carefully to determine which option is best for • You are a student regularly attending classes
you. If you fail to choose within six months, you at a college or university that participates
will be permanently enrolled in the Traditional in SURS and are employed on a part-time,
Benefit Plan. temporary basis at that college or university;
1• You were employed under the Comprehen- employee contributions on gross earnings up to the
sive Employment Training Act on or after Maximum Pensionable Earnings limit set by law.
July 1, 1979; Earnings that exceed this annual limit will not be
• You hold a J-1 or F-1 visa and have not yet included in the calculation of any SURS benefits
established residency status; or for these participants. This limit is $116,740.42
• You are currently receiving a retirement an- for fiscal year 2022 and $119,892.41 for FY2023.
nuity from SURS. The limit increases by the lesser of one half of the
change in Consumer Price Index-Urban (CPI-U)
or 3% each year thereafter, as determined by the
CONTRIBUTIONS Public Pension Division of the Department of
Employee Contributions Insurance.
Because SURS is a contributory system, you Those enrolled in the Traditional Plan who began
must contribute a percentage of your earnings to participation prior to Jan. 1, 2011, are not subject
receive benefits. Your contributions are equal to to this Maximum Pensionable Earnings limit.
8% of your gross earnings, including earnings for
overtime and summer sessions. Also, 8% will be Social Security
deducted from any vacation payments you may Because SURS participants are not eligible for
receive from your employer – if you are paid for Social Security coverage, no Social Security taxes
unused vacation days when you terminate employ- will be withheld from your earnings. However, if
ment. SURS members may not make voluntary you began working for a SURS-covered employer
contributions, except to purchase qualified option- on or after April 1, 1986, contributions for Medi-
al service credit. care will be withheld. Currently, this contribution
equals 1.45% of gross earnings.
EMPLOYEE CONTRIBUTION CHART At retirement, certain restrictions may apply to
your Social Security income if you receive Social
Percentage of Benefit to Which Security benefits and a retirement benefit from
Gross Earnings it is Applied SURS. Contact the Social Security Administration
for more information on these provisions.
6.5% Normal Retirement Benefit
Automatic Annual Increases Employer Contributions
0.5% The state of Illinois shares the cost of providing
In Retirement Benefits
benefits to SURS participants. The state’s share is
1.0% Survivors’ Insurance actuarially determined each year.
8.0% Total Employee Contribution
SERVICE CREDIT
Full-time community college employees (except Service credit is one of the most important factors
City Colleges of Chicago) pay an additional 0.5% in determining eligibility for, and the amount of,
of earnings to fund a health insurance plan devised your SURS benefits. You earn service credit based
for community college retirees (see Health Insur- on the length of your SURS participation.
ance). This contribution is forwarded to the De- SURS classifies service credit in two ways: vest-
partment of Central Management Services and is ing service and benefit service. Vesting service is
not part of your SURS account. used to determine your eligibility to qualify for
a specific benefit, while benefit service is used to
Maximum Pensionable Earnings determine your benefit amount.
Employees enrolled in the Traditional Plan who The period used to calculate service credit begins
first become participants with SURS or another Sept. 1 and ends Aug. 31. During this period, you
Illinois retirement system covered under the Il- may receive no more than one year of service
linois Retirement Systems Reciprocal Act on credit. You can earn service credit for a fractional
or after Jan. 1, 2011, will be limited to making year of service, as shown in the following chart.
2but their employment percentage has varied. They
LENGTH OF SERVICE CREDIT have three years at 20%, two years at 30%, and
EMPLOYMENT EARNED five years at 10%.
15 or more calendar Because both started on the same day, they will
1 month qualify for benefits on the same day, even though
days in a month
one is full time and the other is part time. How-
1 or 2 months 1/4 year ever, when the benefit is actually calculated,
the part-time member’s service may be reduced
3 thru 5 months 1/2 year
because his/her percentage of time is 50% or less.
6 thru 7 months 3/4 year This will affect the number of service years that
can be used in calculating the retirement amount.
8 thru 12 months 1 year Members who have been employed at varying
percentages at 50% time or less should contact
SURS service credit is initially credited based SURS several years prior to retirement to de-
upon basic payroll information received from termine how this calculation might affect their
SURS-covered employers during employment. retirement plan.
This information includes only payroll date and
contributions withheld on SURS-eligible earn- QUALIFYING FOR
ings. Information regarding specific dates worked
is gathered at retirement, in order to determine if
MORE SERVICE CREDIT
service credit requires adjustment. Service credit The following sections explain how you may
balances included on SURS annual statements qualify for service credit in addition to your regu-
reflect unadjusted service credit; therefore, it is lar SURS employment. These possibilities in-
important to verify that your adjusted service clude: leaves of absence, disability leave, unused
total will allow you to meet the minimum vesting sick leave, prior service, military service, other
requirements for any SURS benefit. public employment (OPE), service with Illinois
reciprocal systems and repayment of a separation
PART-TIME EMPLOYMENT refund.
Part-time employment with a SURS-covered If you think you may qualify for additional
employer does not affect your eligibility to qual- service, contact SURS as early in your career as
ify for benefits. Regardless of the percentage of possible. SURS can help you determine how to
employment, you accumulate service for qualifi- verify any additional service for which you may
cation of benefits or vesting, equally. be eligible and help you understand how this ser-
vice may increase your retirement benefit.
When your retirement or survivor annuity is
calculated, benefit service credit may be reduced Leaves of Absence
if you have been employed at 50% time or less
for more than three years after Sept. 1, 1959. This If you are granted a 100% leave of absence (you
reduction is not reflected in your annual Benefit are receiving no salary from your employer),
Summary Statement. you will receive no service or earnings credit. To
receive service and earnings credit for the leave,
Because of potential fluctuations in the percent- you must pay the employee contributions on the
age of employment during a member’s SURS salary you are forfeiting during the leave.
career, the exact reduction that may apply can
only be known after all percentages for years of If you are granted a leave of absence for a per-
service have been received from all employers. centage of time greater than 50%, but less than
100% (you are receiving pay from your employer
For example, two members are the same age and that is less than 50% of your usual salary), you
are certified as contributing SURS members on will continue to receive service credit. However,
the same date. One member may work full-time if your leave continues for more than three years,
(100%) for 10 years. Another may work 10 years, your service credit may be adjusted when your
3benefit is calculated (see Part-Time Employment Disability Leave
in previous section). To avoid this possible adjust-
ment and to maintain full earnings, you may pay You continue to receive full protection during the
the employee contributions on the salary you are first 60 days of disability leave and while receiv-
forfeiting during the leave. Note: The forfeited ing disability or workers’ compensation benefits
salary will be subject to the Maximum Pension- even though you do not make contributions.
able Earnings limit (see Page 2 for more informa- When your retirement annuity is calculated for
tion about this limit). the purpose of determining final average earnings,
SURS will assume your earnings are equal to the
The payment for the leave contributions may be
basic compensation on the date disability occurs
made as:
or the average earnings during the 24 months im-
• A lump sum at the beginning of your leave. mediately preceding the month in which disability
• Monthly installments during your leave. occurs, whichever is greater.
• A lump sum later. Deferring payment will Note: The basic compensation and earnings will
require the payment of interest, which is be subject to the Maximum Pensionable Earnings
compounded annually based on the effective limit (see Page 2 for more information about this
rates. limit).
Service and earnings credit provided by these
leave contributions may not exceed three years in Unused Sick Leave
any 10-year period. For the service and earnings
credit established to be retained, you must return You will receive additional service credit for any
to work when the leave expires at a percentage unused and unpaid sick leave earned in accor-
of time equal to or greater than that immediately dance with an employer’s generally applicable
preceding the leave for at least eight consecutive sick leave policy if your retirement annuity
months or a period equal to the leave, which- begins within 60 days after you terminate your
ever is less. If you do not fulfill this “return from employment covered by SURS or one of the other
leave” requirement or do not complete the pay- systems subject to the Illinois Retirement Systems
ment schedule, the leave contributions will be Reciprocal Act.
refunded without interest. Your employer may pay you for a portion of your
If you are granted a leave of absence for a per- unused sick leave when you terminate employ-
centage of time that is 50% or less (you are ment. If so, you will receive additional service
receiving pay from your employer that is at least credit only for any unpaid portion.*
50% of your usual salary), you continue to re- Any payment you receive from your employer for
ceive service credit. However, you are not eligible sick leave is not earnings for retirement purposes
to make leave contributions. and will not increase your retirement benefit.*
If your employer grants you a sabbatical leave *Except that, if the sick leave payment has been
(this is generally a leave of absence with pay), you collectively bargained between the employer and
receive full earnings and service credit protection. the recognized collective bargaining agent pursu-
If the leave with pay is for a percentage of time ant to the Illinois Educational Labor Relations
greater than 50%, but less than 100% (you are Act, payment received during a period of up to
receiving pay from your employer that is less than two academic years for unused sick leave may
50% of your usual salary), you may pay the em- be considered as earnings in accordance with
ployee contributions on the salary you are forfeit- the applicable collective bargaining agreement,
ing during the leave. This may be advantageous to subject to the 20% increase limitation in the final
you if your retirement annuity is highest under the average earnings. Any unused sick leave consid-
Money Purchase calculation. Please note that the ered as earnings in the final average earnings
“3 in 10 year” rule and the “return from leave” shall not be taken into account in calculating
requirements discussed earlier in the section must service credit.
be met.
4employer within one year of receiving an
UNUSED, UNPAID SICK LEAVE honorable discharge.
Additional In accordance with the Uniformed Services Em-
Service Credit ployment and Reemployment Rights Act of 1994
Full Work Days
(USERRA), you may be eligible to make up any
20-59 days 1/4 year missing SURS contributions during your active
duty military service. For more information, visit
60-119 days 1/2 year www.surs.org.
120-179 days 3/4 year Purchase of Military Service Credit
180 or more days 1 year If your military service occurred before you began
SURS participation, and if you were a SURS
Prior Service With Another participant on or before Sept. 1, 1974, you may be
eligible to purchase active duty military service
SURS-Covered Employer under the provision of SURS Other Public Em-
You may purchase service credit for employ- ployment (see next section).
ment with another SURS-covered employer. This If your military service does not qualify as Other
employment must have been at least 50% time Public Employment, you can purchase service
and must have occurred before you began SURS credit for your military service under a law that
participation. The payment of this service credit is became effective in November 1991. This law
based on your full-time (or full-time equivalent) requires the member to pay both the employee
rate of pay on the date you began SURS partici- and employer contributions, including interest at
pation and the contribution rate that was in effect the effective rates, to receive up to two years of
during your prior employment. Note: The full-time service credit.
rate will be subject to the Maximum Pensionable
Earnings limit (see Page 2 for more information Since the member pays both employee and em-
about this limit). ployer contributions, there are no additional
matching employer contributions in the calculation
Your payment will also include interest. The inter- of the Money Purchase calculation.
est is calculated as follows:
To determine your eligibility for military service
• 6% compounding annually from the date credit, submit a copy of your DD-214 or other
you began SURS participation through Aug. documents that show the dates of your active duty
31, 1982. and verification of honorable discharge. If you do
• Beginning Sept. 1, 1982, the interest com- not have a copy of your military separation papers,
pounds annually based on the effective rates. contact your local Veterans Affairs office.
Interest compounds through the month in
which the payment is made, regardless of Other Public Employment (OPE)
the day of the month the payment is received If you were employed by another public agency
(see Effective Interest Rate table on Page 7). before your SURS participation began, your eligi-
bility to qualify for purchase of additional service
Military Service credit depends in part on when you became a
Military Leave SURS participant.
If you take a leave of absence for active duty mili- The payment required to purchase each year of
tary service that interrupts your SURS- service credit is 8% of your full-time (or full-time
covered employment, you will receive up to five equivalent) rate of pay on the date you began
years of service credit if: SURS participation.
• You enter military service immediately Note: The full-time rate will be subject to the
following a period of employment with a Maximum Pensionable Earnings limit (see Page 2
SURS-covered employer, and for more information about this limit).
• You return to work with a SURS-covered Your payment will also include interest which, as
5with Prior Service, is calculated as follows: Sept. 1, 1974.
• 6% compounding annually from the date • OPE may not be used to meet SURS mini-
you began SURS participation through Aug. mum vesting requirements.
31, 1982. Reciprocity With Other Systems
• Beginning Sept. 1, 1982, the interest com- SURS has reciprocity only with other Illinois
pounds annually based on the effective rates. public retirement systems in determining your eli-
Interest compounds through the month in gibility for, and amount of, SURS retirement and
which the payment is made, regardless of survivor benefits. It is important that you notify
the day of the month the payment is received SURS if you have participated in another Illinois
(see Effective Interest Rate table on Page 7). retirement system. These other systems are:
Eligibility • Chicago Teachers’ Pension Fund
• You must contribute to SURS at least five • County Employees’ Annuity and Benefit
years following the public employment. The Fund of Cook County
five years may include service with the State • Forest Preserve District Employees’ Annuity
Teachers’ Retirement System (TRS) or the and Benefit Fund of Cook County
Chicago Teachers’ Pension Fund (CTPF). • General Assembly Retirement System
• Other public employment (OPE) must be • Illinois Municipal Retirement Fund
with a public school, college or university
in the U.S. If you began SURS participa- • Judges Retirement System of Illinois
tion on or before Sept. 1, 1974, you may • Laborers’ Annuity and Benefit Fund
also purchase employment with the U.S. • Metropolitan Water Reclamation District
government, a state government, a politi- Retirement Fund
cal subdivision of a state, or any agency or • Municipal Employees’ Annuity and Benefit
instrumentality of the foregoing. Fund of Chicago
• You may purchase up to 10 years of OPE, • Park Employees’ Annuity and Benefit Fund
but not more than two-thirds of your direct of Chicago
SURS service credit. This 10-year maximum • State Employees’ Retirement System of
includes any out-of-state employment pur- Illinois
chased with TRS or CTPF. • State Teachers’ Retirement System
• If you began SURS participation on or after
Sept. 5, 1975, the OPE must be full-time, The Illinois Retirement Systems Reciprocal Act
except under the following conditions: ensures that pension credits remain in the system
in which they are earned. You will be entitled to
– If SURS participation terminated prior a retirement annuity from each system in which
to Aug. 18, 1965, you are not eligible to you have retained at least one year of pension
purchase OPE. credit, provided that your combined service credit
– If you were a SURS member between is equal to the longest of the minimum service
July 1, 1967, and Sept. 4, 1975, the requirements of those systems.
OPE must be at least 50% time.
How Your Benefit Will Be
If your SURS participation terminated between Calculated Under Reciprocity
Aug. 18, 1965, and June 30, 1967, the OPE must Each system will abide by its own law in calcu-
be full-time. lating your retirement or survivor annuity. Your
• You cannot qualify for a retirement pension salary from all systems will be considered in de-
or other benefit based on employer con- termining your average earnings. Each system will
tributions from another retirement system apply the benefit formula in effect on the date you
(excluding Social Security) for the period of last terminated employment with an employer cov-
OPE you wish to purchase with SURS. ered by the Reciprocal Act. Therefore, while you
• Military service may be purchased as OPE if are employed with such an employer, your benefit
you began SURS participation on or before will reflect any liberalizing changes in benefits
6that are made by all systems in which you have
credits. If you wish to apply for benefits under the EFFECTIVE INTEREST RATE TABLE
Illinois Retirement Systems Reciprocal Act, you Prior to 9-1-63 3.0%
should request an application from each employ-
ing system at least 90 days before your planned 9-1-63 – 8-31-66 3.5%
retirement date. 9-1-66 – 8-31-73 4.5%
Repayment of a Separation Refund 9-1-73 – 8-31-75 8.0%
If you previously participated in SURS and ac- 9-1-75 – 8-31-76 7.0%
cepted a separation refund, you may reinstate that
9-1-76 – 8-31-77 6.0%
service credit if you again become a participating
employee of SURS or another retirement system 9-1-77 – 8-31-78 6.5%
covered by the Illinois Retirement Systems Re- 9-1-78 – 8-31-79 6.75%
ciprocal Act and continue as such for at least two
years subsequent to the date of the refund. 9-1-79 – 8-31-80 7.0%
You must repay the amount of the refund. Your 9-1-80 – 8-31-88 8.0%
payment will also include interest, which in this 9-1-88 – 8-31-89 7.5%
case is calculated as follows:
9-1-89 – 8-31-96 8.0%
• 6% compounding annually from the date
your original refund was paid, through Aug. 9-1-96 – 8-31-97 8.5%
31, 1982. 9-1-97 – 8-31-98 9.0%
• Beginning Sept. 1, 1982, the interest com-
9-1-98 – 8-31-99 9.5%
pounds annually based on the effective rates.
Interest compounds through the month in 9-1-99 – 8-31-02 10.0%
which the payment is made, regardless of the
9-1-02 – 8-31-03 9.0%
day of the month the payment is received.
9-1-03 – 6-30-05 8.0%
Once you repay a refund, all rights and credits that
were initially forfeited by acceptance of a refund 7-1-05 – 6-30-09 8.5%
are restored. In most cases, this is necessary to
7-1-09 – 6-30-10 8.0%
allow the earlier certification date associated with
the repaid refund to be used to determine eligibil- 7-1-10 – 6-30-13 7.5%
ity for SURS benefits. 7-1-13 – 6-30-17 7.0%
However, for the purpose of determining whether
7-1-17 – 6-30-21 6.5%
your first participation began before Jan. 1, 2011,
repayment of a refund for pre-Jan. 1, 2011, service 7-1-21 – 6-30-22 6.0%
is not required for that service to be considered.
Effective Rate of Interest CLAIMING YOUR BENEFITS
Prior to 2005, the interest amount credited to your You (and/or your beneficiaries)* must file an
account was based on a Sept. 1 through Aug. 31 application with SURS to receive the following
year. Each Aug. 31, interest was calculated based benefits:
on the balance in your account on the previous • Disability
Sept. 1. This effective rate is determined annually • Retirement
by the SURS Board of Trustees. • Disability Retirement Annuity
Beginning July 1, 2005, the interest is credited to • Separation Refund (refund of contributions)
your account on June 30 using July 1 as the previ- • Death / Survivor*
ous balance with interest added at June 30, 2005, Be sure to file early to prevent delay in payment
due to the transition to a new interest year. and possible loss of benefits.
7DISABILITY BENEFITS the later of:
You may qualify for a disability benefit if, after • The date you have been disabled for 60 con-
you have at least two years of service credit, you tinuous calendar days, or
are sick or injured and unable to work. If you be- • The date your salary or sick leave payments
come disabled due to an accident, however, there end.
is no minimum service credit required to qualify You do not need not use vacation pay before re-
for a disability benefit. ceiving a disability benefit. However, if you think
Pregnancy and childbirth are treated as a disabil- your disability is permanent, you may want to
ity. The same rules apply to both. remain on full salary using vacation payments be-
fore your disability benefit begins. Your disability
How to Apply for Benefits benefit may be subject to adjustment if you decide
to receive vacation payments after the disability
If it appears you will be disabled for more than
benefit begins.
60 days and that your disability will extend be-
yond the period you are eligible for sick pay, you Your benefit cannot begin more than 30 days be-
should request a Disability Application from your fore the date SURS receives your application, un-
personnel office. Your application must be on file less the SURS Board of Trustees determines there
with SURS within one calendar year after the date was good cause for missing the filing deadline.
on which your disability occurred. If it has been determined that you are disabled,
When you and your employer have completed the your payment will be mailed on the last working
required sections of the Disability Application, day of the month. Your payment will be prorated
you should see your physician. Your physician if you become disabled after the first of the month.
will review the Employer Section concerning job For example, if you become disabled on Nov. 7,
requirements, complete the Attending Physician’s the benefit will begin 60 days later, on Jan. 6 –
Initial Statement of Disability, and attach any ap- assuming you were not eligible for sick leave or
propriate documentation. vacation pay beyond Jan. 6.
To avoid unnecessary delays, be sure all parts of Your benefit will begin to accrue on Jan. 6 and
the application are completed according to the will be a prorated benefit for the period between
instructions and submitted to SURS together. In- Jan. 6 and Jan. 31. Future payments will also be
complete applications will be returned to you. You mailed at the end of each month and will include
may also be required to see a special examining a benefit for the full month.
physician selected by SURS.
Your Disability Benefit Amount
You must submit continuing evidence of your dis-
ability as often as required. When your physician The amount of your benefit depends on how much
determines you are able to return to work, you you were earning when you became disabled. You
must notify SURS immediately. will receive the greater of:
Your employer will submit an Employer’s Report • 50% of your basic compensation on the day
of Disability that contains information including you became disabled, or
the last day you worked, the date your salary and • 50% of your average earnings for the
sick leave payments will expire, and whether you 24 months prior to the date you became
will be eligible for workers’ compensation or dis- disabled.
ability income insurance. Basic compensation is your normal contract sal-
ary; it does not include your earnings for summer
When Disability Payments Begin sessions or overtime. Note: The basic compensa-
If you qualify for disability payments, there is a tion will be subject to the Maximum Pensionable
60-day waiting period before you are eligible to Earnings limit (see Page 2 for more information
receive a payment from SURS. During this 60- about this limit).
day period you may be eligible to receive sick pay Here’s an example: Assume your monthly income
from your employer. Your benefits will begin on prior to your disability was $1,600. Let’s also
8assume your average monthly earnings for the How Participation in a Reciprocal
24 months prior to the date you became disabled System Affects Your Disability Benefit
was $1,300. Since $1,600 is greater than $1,300, There is no reciprocity for disability benefits be-
your disability benefit would be 50% of $1,600, or tween SURS and other systems covered by the Illi-
$800 a month. nois Retirement Systems Reciprocal Act. However,
Your disability benefit is considered income and is if you have service credit for employment in either
subject to federal income taxes. Disability ben- the State Teachers’ Retirement System (TRS) or
efits are not subject to Illinois state income taxes, the State Employees’ Retirement System (SERS),
however. it will be considered in determining your eligibility
Each Jan. 1, your disability benefit will be in- for benefits and how long they can be paid.
creased automatically by 3%. The automatic In addition, if you were “involuntarily trans-
annual increase (AAI) is a compounded percent- ferred” by law to SURS from another system
age; the 3% increase is figured into your benefit covered by the Reciprocal Act, your combined
amount each year. The first AAI will begin on the earnings and service are considered in determin-
Jan. 1 following the month in which your disabil- ing your eligibility for disability benefits and how
ity benefit began. It will be prorated for the num- long they can be paid. You are considered to be
ber of full months between the start of the disabil- involuntarily transferred if:
ity benefit and the following Dec. 31. • You were an employee of the transferring
government unit on the date your employer
Benefit Reductions was transferred to coverage under SURS; or
and Other Limitations • You accepted employment with the employ-
While receiving a disability benefit, you may er within six months after the transfer date.
receive other income, such as workers’ compensa- How Long Disability Benefits Last
tion or disability income insurance. Your disabil-
Your disability benefit will continue until the ear-
ity benefit will be reduced for:
lier of the following:
• Workers’ compensation or occupational dis- • You no longer meet the definition of
ease payments for an on-the-job accident or disabled;
occupational illness. There are some excep-
• You refuse to submit to reasonable physical
tions to this.
examinations;
• Disability income insurance payments under
• You refuse to accept a position offered by
a policy paid for in whole or in part by your
your employer, even though your disability
employer.
would not preclude you from performing the
While you are disabled, your physician may allow duties of that position;
you to return to work part-time. Your payment • You have received 50% of your total earn-
will be reduced by the amount you ings while a participant of SURS, TRS, or
earn in excess of the amount of your disability SERS. Note: The earnings will be subject to
benefit. This ensures that your combined earnings the Maximum Pensionable Earnings limit
and disability benefit do not exceed your earnings (see Page 2 for more information about this
prior to your disability. limit).
An example of a benefit reduction for part-time • Sept. 1 of the year following your 70th
employment: Assume you were receiving a dis- birthday. However, if your benefit begins af-
ability benefit of $800 a month, as in the previous ter age 65, you may receive a benefit for up
example. Through part-time employment, you also to five years, assuming you continue to be
earn $900 a month. Your disability benefit would disabled and have not reached the maximum
be reduced by $100, so that your total monthly in- earnings amount described above;
come would be $1,600, or 100% of your earnings • You apply for retirement or refund, or you
prior to your disability. die.
9If You Return to Work the highlights:
and Become Disabled Again • One or more appointed physicians must cer-
If you have returned to work for less than 30 tify that you are totally disabled and unable
calendar days and have another disability due to to perform any substantial gainful activity.
the same cause, it will be considered a recurrence • The amount of your benefit is 35% of the
of the previous disability. In this case you will not basic compensation that was payable to you
be required to meet another 60-day waiting period when your disability began. Note: The basic
before benefits begin, but you will need to file a compensation will be subject to the Maxi-
new disability application. mum Pensionable Earnings limit (see Page
2 for more information about this limit).
Options Available After • Your benefit is payable until you no longer
Your Disability Benefit Stops meet the requirements to receive a DRA,
you apply for retirement, or you die.
If you are still disabled when your disability ben-
efit stops, you have four options: How to Apply for Benefits
• Resign your position and apply for a refund An Application for Disability Retirement Annu-
of your contributions and interest. ity will be sent to you approximately three or four
• Leave your contributions on deposit; the months before your disability benefit is due to
money continues to earn interest and can be end. If you believe you will be eligible, complete
withdrawn later or be paid to your benefi- the application and return it to SURS immediately.
ciary when you die. Ultimately, it must be
The SURS medical officer will request reports
paid by the April 1 following the year you
from your physician and may request reports from
reach age 70.5.
one or more physicians appointed by or accept-
• Apply for a Disability Retirement Annuity able to the SURS Board of Trustees certifying
if your disability benefit was terminated due your disability. You are deemed eligible for ben-
to the 50% earnings limitation, and you are efits if you have a physical or mental impairment
permanently disabled and unable to engage that prevents you from engaging in any substantial
in any substantial gainful activity (see below gainful activity, and:
for more information).
• Your disability has lasted or is expected to
• Apply for a retirement annuity to begin at
last continuously for more than one year; or
any time after you satisfy your service and
age requirements for retirement (see Page 14 • Your disability is expected to result in death.
for more information) In this case, the early You must submit continuing evidence of your
retirement reduction would not apply pro- disability as often as required. If you are able to
vided your first participation began prior to engage in any substantial gainful activity, you
Jan. 1, 2011. should notify SURS immediately.
Eligibility for Other DRA Payments and Amount
Benefits During Disability If you are determined to be eligible for DRA,
While on disability, you continue to earn service your benefit will be effective the first of the month
credit for retirement and are protected for survivor following the expiration of your disability. For ex-
insurance benefits. ample, if your disability benefit ends on June 19,
the first DRA payment will begin on July 1.
DISABILITY RETIREMENT Your benefit amount is 35% of the basic compen-
sation that was payable to you when your disabil-
ANNUITY (DRA) ity began.
If your disability benefit expired due to the 50%
Note: The basic compensation will be subject to
earnings limitation, you may be eligible for a
the Maximum Pensionable Earnings limit (see
Disability Retirement Annuity (DRA). Here are
Page 2 for more information about this limit).
10Each Jan. 1, your DRA will be increased auto- A survivor benefit is paid as a monthly amount
matically by 3%. The automatic annual increase to a qualifying survivor(s). A qualifying survivor
(AAI) is a compounded percentage; the 3% is predetermined by law and is usually a family
increase is figured into your annuity amount each member, such as a spouse/civil union partner or
year. The first AAI will begin on the Jan. 1 follow- child. The death benefit is usually paid in a lump
ing the month in which your DRA began. It will sum to someone you name on your Beneficiary
be prorated for the number of full months between Designation who may or may not be a family
the start of the DRA and the following Dec. 31. member.
Keep in mind that your DRA is considered income
and is subject to federal income taxes. However, Designating a Beneficiary
no benefits payable by SURS are subject to Il- It is extremely important that you maintain a cur-
linois state income taxes. rent Beneficiary Designation on file with SURS.
When a significant event occurs in your life, such
How Long DRA Benefits Last as marriage, birth, death, divorce, or any change
Your DRA benefit is payable for life. Your benefit in family status, contact SURS to update your
will stop if: designation. You may obtain the designation form
on the SURS website.
• You are able to engage in any substantial
gainful activity. You may name any person, firm, corporation, or
other legal entity (including your estate) as pri-
• You elect to receive a regular retirement
mary or contingent beneficiary for a death benefit.
annuity.
You may change your designation at any time.
• You elect to receive a refund.
If you divorce, your spouse/civil union partner
Eligibility for Other is disqualified for survivor benefits. After your
divorce, you must designate or redesignate your
Benefits While on DRA former spouse/civil union partner as your benefi-
While on DRA, you are protected for death/ ciary for him or her to be eligible for any lump-
survivor benefits (see section on Death After sum death benefit.
Retirement). However, you do not earn service
On the Beneficiary Designation, you are asked
credit since your benefit is in lieu of a retirement
to name primary beneficiary(ies) and contingent
annuity.
beneficiary(ies). If your primary beneficiary
When your DRA is approved, if you do not have predeceases you, the benefit will be paid to any
an eligible survivor (a spouse/civil union partner, remaining primary beneficiaries. If no primary
unmarried child under 18 or up to age 22 if full- beneficiaries are living, the benefit will be paid to
time student, disabled child over 18 if disabled your contingent beneficiaries. If you have not filed
prior to age 18, or financially dependent parent a Beneficiary Designation with SURS, the death
age 55 or older), you may receive a lump-sum benefit will be paid to your estate.
refund of your survivors insurance contribu-
tions plus interest. Upon your death, SURS will If You Die Before Retirement
pay a lump-sum death benefit to your named Death Benefits
beneficiary.
If you die before retirement and have no qualify-
BENEFITS PAID ing survivor(s), or if survivor benefits have been
waived, your named beneficiary(ies) will receive:
AFTER YOUR DEATH • Your total retirement contributions and inter-
In the Traditional Benefit Package there are two est (including your 1% survivor contribu-
types of benefits that may be paid after your death: tion); and
death benefits and survivor benefits. The benefit • A lump sum of $2,500 shared by your non-
paid depends on whether you die before or after dependent beneficiaries, or
retirement, and whether you have a qualifying
• An amount equal to your average annual
survivor.
11earnings up to $5,000, provided you are an
active SURS participant when you die, to be SURVIVOR BENEFITS FORMULA
shared by your dependent beneficiaries. For Pre-Jan. 1, 2011, Participants Only
If you have a qualifying survivor who elects to
receive a monthly survivor benefit, the total death Maximum Formulas
benefit paid will be approximately 7/8 of the total 1. 80% of base annuity or DRA. This applies
contributions and interest. to inactive members or members receiving
a DRA or retirement annuity.
Survivor Benefits Before Retirement
2. $400 per month (one survivor), or $600 per
Qualifying survivors in the Traditional Benefit month (two or more survivors)
Package include:
3. 30% (one survivor), or 60% (two survi-
• Your spouse/civil union partner, if he or she vors), or 80% (three or more survivors) of
was married to you at least one year before your final average earnings (last 48 months
your death and: (a) is at least age 50; or (b) or four highest-paid consecutive years)
has in his or her care your unmarried chil-
dren under 18 or up to age 22 if full-time Minimum Formula
student, or your disabled children 18 or over 50% of the earned retirement annuity
if disabled prior to age 18.
• Your unmarried child(ren) under 18, or up to SURS will compare the lesser of the three
age 22 if a full-time student. amounts in the Maximum Formula to the
• Your disabled child(ren) 18 or over if dis- amount of the Minimum Formula. The
abled prior to age 18. monthly survivor benefit will then be the
• Your financially dependent parent(s) age 55 larger of the Maximum or Minimum formulas.
or over.
Benefit Amount
If you have at least one and a half years of service SURVIVOR BENEFITS
credit when you die, or if you had at least 10 years BEFORE OR AFTER RETIREMENT
of service credit at termination of employment but For Pre-Jan. 1, 2011, Participants Only
before retirement, your qualifying survivor(s) will
receive: Average One Two Three or More
• A lump sum of $1,000 (this benefit may be Monthly Survivor Survivors Survivors
divided equally among Illinois Reciprocal Earnings (30%) (60%) (80%)
Systems, in which case only a portion of it is
paid by SURS); and $600 $180 $360 $480
• If you first began participation prior to $800 $240 $480 $600*
Jan. 1, 2011, the greater of the minimum
and maximum formulas used to determine $1,000 $300 $600* $600*
survivor benefits. SURS will compare the
lesser of the three amounts in the maximum $1,200 $360 $600* $600*
formula to the amount of the minimum for-
mula. (See Survivor Benefits charts.) $1,400 $400* $600* $600*
• If you first began participation on or after
Jan. 1, 2011, the survivor benefit will be *The maximum benefit limitation applies. In all cases,
662/3% of your earned retirement annuity. if 50% of the retirement annuity would provide a
larger amount, the survivor benefit is guaranteed to be
the 50% amount. In short, the Minimum Formula can
exceed the Maximum Formula.
12Automatic Annual Increase has in his or her care your unmarried chil-
For death before retirement, an annual increase dren under 18 or up to age 22 if full-time
will apply to the monthly survivor annuity. student, or your disabled children 18 or over
if disabled prior to age 18;
• If you first began participation prior to Jan.
• Your unmarried child(ren) under 18, or up to
1, 2011, an annual 3% compounded increase
age 22 if a full-time student;
will apply to the monthly survivor annuity,
beginning on the Jan. 1 closest to the first an- • Your unmarried disabled child(ren) 18 or
niversary date of the annuity. over if disabled prior to age 18;
• Your financially dependent parent(s) age 55
For example, if the annuity begins on Aug. 1,
or over.
2009, the first anniversary date will be Aug.
1, 2010, so the first 3% increase will take ef- Benefit Amount
fect Jan. 1, 2011.
Your qualifying survivor(s) will receive:
• If you first began participation on or after
• A lump sum of $1,000 (this benefit may be
Jan. 1, 2011, a non-compounding annual
divided equally among Illinois Reciprocal
increase will apply to the monthly survivor
Systems, in which case only a portion of it is
annuity on the Jan. 1 occurring after the first
paid by SURS); and
anniversary of the commencement of the sur-
vivor annuity. The increase will be the lesser • If your first participation began prior to Jan.
of half of the Consumer Price Index-Urban 1, 2011, the greater of the Minimum and
(CPI-U) from the preceding year or 3%, Maximum formulas used to determine sur-
computed on the original survivor annuity vivor benefits (see Survivor Benefits charts);
amount. If for any year the CPI-U decreases or, if your first participation began Jan. 1,
or is zero, no annual increase will apply. 2011, or later, the survivor benefit will be
662/3% of your annuity as computed without
For example, if your annuity begins on Dec. age penalty using your balances at the date of
1, 2021, the first anniversary date will be your death.
Dec. 1, 2022, so the first increase will take
effect Jan. 1, 2023. After retirement, the benefit paid upon your death
is either a survivor benefit or a death benefit, not
If You Die After Retirement or DRA both. Survivor benefits will be paid to any existing,
eligible survivors. Survivor benefits will continue
Death Benefits if your spouse/civil union partner remarries. If you
If you did not have a qualifying survivor when you have no eligible survivors, the death benefit will be
retired and accepted a refund of survivor contribu- paid.
tions, upon your death your named beneficiary will
receive a death benefit equal to the greater of: Automatic Annual Increase
• Your total contributions and interest at the For death after retirement, an annual increase will
benefit start date, less the sum of the retire- apply to the monthly survivor annuity on the Jan. 1
ment payments and/or DRA payments; occurring on or after the date the survivor annuity
begins.
• $1,000;
• $500 if you terminated employment prior to • If you first began participation prior to Jan. 1,
Aug. 27, 1973. 2011, the increase is compounded at a rate of
3% each year.
Survivor Benefits After Retirement or DRA • If you first began participation on or after
As is the case if you die before retirement, qualify- Jan. 1, 2011, the increase is computed on
ing survivors include: the original survivor annuity amount. The
amount of increase is the lesser of half of the
• Your spouse/civil union partner, if he or she
Consumer Price Index-Urban (CPI-U) from
was married to you at least one year before
the preceding year or 3%. If for any year
your death and: (a) is at least age 50; or (b)
the CPI-U decreases or is zero, no annual
13increase will apply. at age 62 cannot include any OPE you have
For example, if your annuity begins on Aug. purchased (see OPE section on Page 5).
1, 2012, the first increase will take effect Jan. If you first began participation on or after Jan.
1, 2013. 1, 2011, you are eligible to receive a retirement
annuity when you satisfy any of the following:
Supplemental Minimum Annuity Guarantee
• You are at least age 62 and have 10 or more
A person receiving a monthly survivor benefit years of Illinois service (benefits will be
from SURS is entitled to $17.50 for each year reduced for early retirement if you retire
of benefit service credit, up to a maximum of 30 between ages 62 and 67);*
years of benefit service.
• You are at least age 67 and have 10 or more
If the member’s employment was at less than 50% years of Illinois service (no age reduction).*
time, there may be a reduction in the number of
*The indicated minimum required service
years of service credit accumulated for calculating
years cannot include any OPE you have pur-
this benefit.
chased (see OPE section on Page 5).
Since this special survivor benefit is a supplemen-
You must begin receiving your retirement annuity
tal guarantee, it does not contain annual retirement
by April 1 following the year you reach age 70.5
increases.
if you are not currently participating in SURS or
All survivor formulas will still be calculated to de- another system covered by the Illinois Retirement
termine which formula would provide the highest Systems Reciprocal Act.
dollar benefit. Each year, the annual increases will
There are four formulas for calculating a retire-
be applied to the regular survivor annuity.
ment annuity:
When that regular survivor annuity with all ac-
• General Formula
cumulated raises exceeds the supplemental mini-
mum annuity guarantee, SURS will automatically • Money Purchase Calculation*
increase this survivor annuity to the regular calcu- • Minimum Annuity Formula*
lation. From then on, the regular survivor annuity • Police Officer and Firefighter Formula*
will be paid to the annuitant and each year the *See the descriptions of the indicated calculations
appropriate annual increase will be added. for eligibility information.
All eligible formulas will be used to calculate your
RETIREMENT BENEFITS retirement annuity. Each is discussed after the next
SURS retirement annuities are paid for life. Your section. You will receive the largest of the eligible
eligibility to begin receiving a retirement annuity amounts. Regardless of the formula used, you may
depends on when you satisfy the vesting and age not exceed the applicable maximum (see bottom of
requirements. General Formula tables on Pages 16 & 17).
If you first began participation prior to Jan. 1,
2011, you are eligible to receive a retirement an- FINAL AVERAGE EARNINGS
nuity when you satisfy any of the following: The final average earnings are used to determine
• You are at least age 55 and have eight or retirement and survivor annuities. The term “final
more years of Illinois service (benefits will average earnings” is used within SURS to avoid
be reduced for early retirement if you retire member confusion. However, statutes refer to it as
between ages 55 and 60);* the Final Rate of Earnings.
• You are at least age 62 and have five or more If you first began participation prior to Jan. 1,
years of service; or * 2011:
• At any age when you achieve 30 years of • For an employee who is paid on an hourly
service, provided your covered employment basis or who receives an annual salary in
terminated on or after Aug. 2, 2002. installments during 12 months of each aca-
* The eight years at age 55 and five years demic year, it is the average annual earnings
14You can also read
