  |
||
|
||
|
|
||||||
 |
|
|
Payroll Deductions to Purchase SURS Service Credit under Traditional or Portable Benefit Packages The State Universities Retirement System (SURS) statutes allow for the purchase of eligible service credit. In the past, SURS members were limited to using after-tax dollars or a rollover from a qualified plan to purchase this credit. Beginning October 1, 2001, eligible members have an additional method of payment for purchasing eligible service credit. This new method is an IRREVOCABLE payroll deduction plan. It allows Eastern Illinois University to withhold contributions from your salary on a before-tax basis. In addition to the tax benefits, this will give you the option of budgeting for smaller monthly payments in lieu of making one large lump sum payment. Eastern Illinois University’s Board must have adopted a resolution that allows for the employer pick-up of contributions to purchase service credit.The Board of Trustees adopted the resolution at the June, 2001 meeting. You must be currently employed by a SURS-covered employer and have received at least 9 months of earnings in the previous 12 months. Your monthly salary must accommodate a minimum monthly deduction of at least $50. See “Highlights of the Plan” section for more information. Your eligible service credit must be verified.SURS will not issue the Irrevocable Payroll Deduction Authorization Form (commonly referred to as the “contract”) prior to verification.See SURS Member Guides www.surs.com for eligibility requirements to purchase service credit.
Participation in the payroll deduction option reduces your taxable income. Since you will not have paid federal income taxes on the payroll deduction contribution, this type of payment will be taxed after your retirement. If you are also participating in a supplemental retirement plan, such as a 403(b) tax-sheltered supplemental retirement plan or a 457(b) Deferred Compensation plan, the payroll deduction method may decrease the amount you are allowed to contribute to these other plans because your taxable income will be reduced. You should contact the administrator of your supplemental retirement plan to determine the impact of reducing your taxable income by participating in the payroll deduction plan. For more information contact EIU Benefits Services at 581-5825. Call SURS at 1-800-275-7877 or 217-378-8800 (Champaign/Urbana area). SURS will send you a letter summarizing the various payment options from which you may choose. The options will be based on the following:
Upon receipt of the summary letter, SURS will send you the contract based on your selection. Both you and the authorized employer representative (EIU Benefits Manager) must sign and return the contract to SURS office by the deadline stated in the document. Upon receipt of the signed contract, SURS will notify Benefits Services to begin payroll deductions. SURS will send you a letter confirming receipt of your valid contract. Service credit purchases for Prior Service, Other Public Employment and Military Service will be credited towards the 20 year group insurance eligibility rule. Members participating in the SURS Self-Managed Plan will be offered this opportunity later next year. The information contained in this notice is provided as a source of information and does not constitute legal, tax, or other professional advice. If you need additional legal or tax assistance, please consult a professional advisor. 07/26/01/jb |
||||||||||||||||||||||||
| Eastern Illinois University :: 600 Lincoln Avenue :: Charleston, IL 61920-3099 ::
217-581-5000 :: Contact Us ::
Maps & Directions ::
Text Only Privacy Statement :: Confidentiality Statement :: Mission Statement :: Federal and State Mandated Information :: Alert EIU |
Benefits Services
