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State of Illinois Deferred Compensation Plan
LATEST NEWS
- Contribution limits will increase in 2025. The IRS announced that contribution limitations governing 457(b) plans will increase in 2025.
- The contribution limit for participants under the age of 50 will increase to $23,500.
- The age 50 catch-up amount will remain at $7,500. This brings the total contribution limit for participants that are 50 and older to $31,000.
- A new age 60-63 catch-up category has been created in 2025. This catch-up amount is $11,250. This brings the total contribution limit for participants that are 60 through 63 to $34,750. This limit begins in the calendar year the participant turns 60. The contribution limit will return to the age 50 limit in the calendar year the participant turns 64.
- The Special Catch-up limit will increase to $47,000.
The State of Illinois Deferred Compensation Plan is a supplemental retirement program for State employees. Contributions to the Plan can be made on a pre-tax or Roth basis through salary deferrals. The combined pre-tax and Roth contributions cannot exceed the limit set by the IRS. In 2025, employees are allowed to defer up to $23,500. Employees over age 50 are allowed to defer up to $31,000. Employees that are age 60 to 63 are allowed to defer up to $34,750. Employees enrolled in Special Catch-Up are allowed to defer up to $47,000. Participants that are within three years of retiring must contact CMS Deferred Compensation to apply for Special Catch-Up.
Pre-tax contributions, together with any earnings, accumulate tax-deferred until the employee terminates service, dies, or incurs unforeseeable financial hardship. Once distributions begin, the distributed monies are fully taxable as ordinary income for federal tax purposes. The funds are never taxed by the State of Illinois.
Roth contributions, together with any earnings, qualify for tax-free distribution when the initial after-tax contributions to the account are at least 5 years old and the employee is age 59 ½ or older, dies, or becomes disabled.
To enroll or make changes please contact the Plan’s recordkeeper, Empower. Changes can be made online at www.myillinoisdcplan.com or over the phone at (833) 969-4532.
To schedule a meeting with your Retirement Plan Counselor please click here. To register for a webinar please click here.
Additional Plan resources and documents can be found here.
QDRO Consultants (For completing Qualified Domestic Relations Orders)
Contact Us
CMS Deferred Compensation Office
801 S. 7th Street
PO Box 19208
Springfield, Illinois 62794-9208
217-782-7006 (Voice)
800-442-1300 (Toll Free)
