Latest News Archive

If you would like to make any changes to your Plan account, please register online at myillinoisdcplan.com, call (833) 969-4532, or download the Empower app. To register your account online, Empower will need to have a valid email address or text capable phone number already on file in order to complete the required two-factor authentication process. If they do not already have that information on file, please contact CMS at (217) 782-7006 for assistance.

Please note, old participant accounts held at T. Rowe Price will not be deactivated. Although the account balance is zero, participants may still use this website to review their old transaction history and documents.

The Plan will enter a blackout period at 3pm CST on June 27, 2022. This period is expected to last until the week of July 10, 2022. During that time, you will be unable to elect changes to your account. After the blackout has ended, all new elections will be made through Empower at www.myillinoisdcplan.com or by calling 833-969-ILDC (833-969-4532).

For more information about the transition, please review the announcement email, Transition Guide, or Transition FAQ. The announcement email was sent to all active State of Illinois employees that have an @illinois.gov email address on May 23, 2022. The Transition Guide was mailed to all current participants with a balance, along with all State of Illinois employees eligible to participate in the Plan, on May 27, 2022.

End of the Fee Waiver. As previously communicated in early 2021, administrative fees incurred by participants in the Plan were temporarily waived. However, effective the fourth quarter of 2021, the Plan administrative fees will resume. These fees will be deducted from participant accounts on December 31, 2021 and categorized on the fourth quarter statements as “Fees”.

On November 10, 2021, the attached email was sent from T. Rowe Price to all participants in the Plan that have an email address on file. The attached letter was mailed to participants that have not provided an email address.

Deferral limits will increase for 2022. The IRS announced that pension limitations governing the 457 plans will increase for 2022 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $20,500 and the Special Catch-up limit will therefore increase to $41,000.  The age 50 catch-up contribution limit will remain at $6,500 making the total contribution limit for those aged 50 and older $27,000 for the 2022 tax year.

Announcing a Fee Waiver. As a result of a recent Plan review, we are pleased to announce that participant administrative fees will be temporarily waived for calendar year 2021. On March 10, 2021, the attached email was sent from T. Rowe Price to all participants in the Plan that have an email address on file. The attached letter was mailed to participants that have not provided an email address.

Deferral limits will remain the same for 2021. The IRS announced that pension limitations governing 457(b) plans will remain the same for 2021 as the increase in the Consumer Price Index was not sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in the Deferred Compensation Plan will stay at $19,500. The additional catch-up contribution limit for employees aged 50 and over will remain at $6,500. The Special Catch-Up limit will remain at $39,000. 

Additionally, the Plan will introduce a new investment option naming convention that is intended to better align with each option’s investment category and objective.

Effective July 1, 2020, participants may elect to defer a percentage of their pre-tax gross compensation. This new deferral option is in addition to the current method of electing a flat contribution amount. A participant’s current deferral method will not change unless they make a new election. To elect a percentage deferral, participants must visit the T. Rowe Price website or call (888) 457-5770.

Automatic Enrollment. Public Act 101-0277 amended the Illinois Pension Code to require automatic enrollment of certain new hires into the State of Illinois Deferred Compensation Plan (“Plan”).

Effective July 1, 2020, any new State of Illinois employee that is a member of the State Employees Retirement System (SERS), the General Assembly Retirement System (GRS), or the Judges Retirement System (JRS), and has not contributed to one of these retirement systems prior to July 1, 2020, will be automatically enrolled in the Plan.
     

New employees that are subject to automatic enrollment will have 30 days from their start date to opt out of the Plan. If a new employee is automatically enrolled, they will have 90 days from their enrollment to request a refund of their contributions. Plan participants may revoke their contributions at any time.

CARES Act Changes. In accordance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the State of Illinois Deferred Compensation Plan (“Plan”) is enacting several changes to assist qualified individuals who have experienced adverse financial consequences due to the coronavirus. To determine if you are a qualified individual, please refer to the attached IRS guidance.      

For more information on coronavirus-related distributions, loan repayment suspension, or the rollover of required minimum distributions, please call T. Rowe Price at 1-888-457-5770. Representatives are available to assist you on business days from 6 a.m. to 9 p.m. Central Standard Time.

The Illinois Deferred Compensation Plan has adopted a default investment policy which is effective immediately.  This policy will only affect participants who fail to select their own investment options.  If an enrollment or transfer in form is received without any investment being selected this policy will allow the Plan to automatically select an investment fund by default.  The investment fund selected will be the Vanguard Targeted Retirement Date fund closest to the year in which the participant turns 65.  See the attached notice for more information.

Annual Default Investment Notice 

Deferral limits will increase for 2020. The IRS announced that pension limitations governing the 457 plans will increase for 2020 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $19,500 which increases the Special Catch-up limit to $39,000.  The age 50 catch-up contribution limit will also see an increase from $6,000 to $6,500 making the total contribution limit for those aged 50 and older $26,000 for the 2020 tax year.             

Deferral limits will increase for 2019. The IRS announced that pension limitations governing the 457 plans will increase for 2019 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $19,000 and the Special Catch-up limit will therefore increase to $38,000.  The age 50 catch-up contribution limit will remain at $6,000 making the total contribution limit for those aged 50 and older $25,000 for the 2019 tax year.

Deferral limits will increase for 2018. The IRS announced that pension limitations governing the 457 plans will increase for 2018 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $18,500 and the Special Catch-up limit will therefore increase to $37,000.  The age 50 catch-up contribution limit will remain at $6,000 making the total contribution limit for those aged 50 and older $24,500 for the 2018 tax year.

Deferral limits will remain the same for 2017. The IRS announced that pension limitations governing the 457 plans will remain the same for 2017 as the increase in the Consumer Price Index was not sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will stay at $18,000. The catch-up contribution limit for employees aged 50 and over will remain at $6,000, and the Special Catch Limit is $36,000. 

Roth 457 is here.  A designated Roth account was added to the Deferred Compensation Plan in January of 2016.  The Roth provision allows employees to make after-tax contributions to their account which become available for withdrawal after separation of employment.  Then, both Roth contributions and associated earnings can be withdrawn tax-free when you take a qualified distribution. 

We are accepting enrollments in the Roth 457 for payrolls effective the month after the month of form submission. Complete this Enrollment Form and indicate the amount you wish to contribute each pay in total to the Roth account, even if you currently defer to a pre-tax Deferred Compensation account.  If you want to stop your current Deferred Compensation deferrals, you must complete the Change Form revoking your participation at the same time you are enrolling in the Roth.

Additional information can be found in our latest newsletter and here.

Investment and Fee Structure Changes Coming  The Illinois State Board of investment (ISBI), is making some important Plan changes as a result of an in-depth review of the Deferred Compensation Plan’s performance and structure.  The main goal is to provide investment excellence and empower participants with the very best retirement planning solutions.  A letter from ISBI along with a detailed brochure was mailed to all participants in the Plan.  The changes will take effect beginning March 30, 2017, 3p.m. CT.
Educational meetings will be available for participants beginning March 8, 2017, through March 23, 2017. Click the links for the meeting locations and the dates for the on-site meetings and webinars.

Distribution Reminder  Installment payments scheduled for the month of January 2017 will be sent in the third week of the month. Please note that all scheduled future installments, with the exception of January installments, will continue to be distributed on the first business day of each month.

Changes to your Plan’s investment lineup.  The Wellington Diversified Growth Portfolio and Vanguard Prime Money Market Fund are being replaced in the Plan. Learn more in this brochure that was mailed to affected participants.  Archived 11/07/2016

Deferral limits will remain the same for 2016. The IRS announced that pension limitations governing the 457 plans will remain the same for 2016 as the increase in the Consumer Price Index was not sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will stay at $18,000. The catch-up contribution limit for employees aged 50 and over will remain at $6,000, and the Special Catch Limit is $36,000.

Income Tax Information and Deferral Rates for 2015.  2015 Income tax information regarding the annual IRS limits, how to report contributions to and withdrawals from Deferred Compensation on your 2014 income tax return, and rules for age 70 1/2 required minimum distributions are explained in this helpful document.

*Important!!* Plan Changes may require your action! As part of its commitment to helping you prepare for a more secure retirement, the Illinois State Board of Investment is making several investment enhancements to the Deferred Compensation Plan in the coming months. Click each link below to learn more about the investment changes and plan wide re-enrollment.

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  • Plan Enhancements Coming Letter 2-5-2015
  • Investment Changes and Re-Enrollment Brochure 2-23-2015
  • Meeting Schedule and Locations 3-05-2015
  • Recorded Presentation 3-19-2015
  • Self-Mailer Re-Enrollment Form

Deferral limits have been increased for 2015. The IRS announced that pension limitations governing the 457 plans will increase for 2015 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment. Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $18,000. The catch-up contribution limit for employees aged 50 and over who participate will increase to $6,000. 10/28/2014

Deferral limits remain unchanged for 2014. The IRS announced that pension limitations governing the 457 plans will remain unchanged because the increase in the Consumer Price Index did not meet the statutory thresholds for its adjustment. Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation remains unchanged at $17,500. The catch-up contribution limit for employees aged 50 and over who participate will remain unchanged at $5,500. 11/4/2013

Investment changes: Three common trust funds were added January 2, 2013, to the investment option lineup and three existing investment options are changing investment structure from mutual funds to separate accounts.