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EIU Benefit Services

Voluntary Tax-Deferred Retirement Options

As an employee, you have the opportunity to invest in voluntary tax-deferred retirement options. Your options include 403(b) and 457.

Voluntary Tax 403(b)

Eastern Illinois University sponsors the Supplemental 403(b) Retirement Plan. Eligible employees of the university can voluntarily elect to defer a portion of their compensation to the plan to supplement their retirement savings. Please refer to the 403(b) Universal Availability Notice for more information. 

To enroll in the voluntary tax-deferred retirement plan or to change the amount/allocation of your salary reduction:

  1. Complete the Salary Reduction Agreement
  2. Submit completed form to Benefit Services

Tax-sheltered Investment Products

The following companies, approved by the Board of Trustees, are authorized to market tax-sheltered investment products at EIU:

Deferred Compensation 457 Plan

Effective June 15, 2020, participants must visit the T. Rowe Price website or call (888) 457-5770 to request a salary deferral change or to enroll in the Plan. CMS will no longer accept Enrollment or Change forms, except in the case of lump sum deferrals. Enrollments and salary deferral changes will be effective the first pay period of the following month. Revocations will be effective as soon as administratively possible.

Effective June 15, 2020, participants must visit the T. Rowe Price website to designate or change beneficiary elections. Participants may also call (888) 457-5770 to request a paper form by mail. Current beneficiary elections on file with CMS will remain in effect until a new election is made through T. Rowe Price.

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.

 

CARES Act Changes. In accordance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the State of Illinois Deferred Compensation 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.

 

Effective May 29, 2020, qualified individuals may request penalty-free distributions up to a total of $100,000 (not to exceed the participant’s account balance) through December 31, 2020. Additionally, qualified individuals may defer loan repayments due through December 31, 2020. Finally, certain required minimum distributions received in calendar year 2020 may be eligible for a rollover back into the plan.

 

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.

See the enrollment brochure at:

https://www2.illinois.gov/cms/benefits/Deferred/Documents/DefComp_Forms/Enrollment_Brochure.pdf

 

 

Deferral Limits will not increase for 2021

The IRS announced that pension limitations governing the 457 plans will not increase for 2021. Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation remain at $19,500 limits to $39,000. The age 50 catch-up contribution limit will also remain at $6,500 making the total contribution limit for those aged 50 and older $26,000 for the 2021 tax year.

 

Compare 403(b) and 457

403(b) and 457 Comparison Chart

 

CMS DEFERRED COMPENSATION LUMP SUM DEFERRAL FORM

A new Lump Sum Deferral Form has been created for participants that wish to contribute a portion of their lump sum into Deferred Compensation.  This form is only intended for those employees who wish to make a one-time contribution.  All other contributions taken on a monthly basis should still be initialized by utilizing the Enrollment/Change forms.

 

Related Pages

Contact Information

Benefits Office

Old Main Room 2020
600 Lincoln Avenue
Charleston IL, 61920

217-581-5825
Fax: 217-581-3614
benefits@eiu.edu


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