State of Illinois Deferred Compensation Plan
- Beginning January 1, 2024, all new contribution elections made by participants will be effective as soon as administratively possible. You will no longer have to wait until the first pay period of the following month for a new contribution election to take effect. If you manually enroll in the Plan, change your contribution amount or percentage, or revoke your contribution, then your Deferred Compensation deduction will be adjusted on the earliest pay period that your payroll office can facilitate the change. Please consult with your payroll office to determine which paycheck will reflect the change.
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 2024, employees are allowed to defer up to $23,000. Employees over age 50 are allowed to defer up to $30,500. Employees enrolled in Special Catch-Up are allowed to defer up to $46,000. 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.
Additional Plan resources and documents can be found here.
QDRO Consultants (For completing Qualified Domestic Relations Orders)
CMS Deferred Compensation Office
801 S. 7th Street
PO Box 19208
Springfield, Illinois 62794-9208
800-442-1300 (Toll Free)