Traditional Plan Member Guide

TRADITIONAL PLAN MEMBER GUIDE



















SURS

MISSION STATEMENT

TO SECURE AND DELIVER THE

RETIREMENT BENEFITS PROMISED

TO OUR MEMBERS.

TABLE OF CONTENTS



















3

3



4













6

6



7



7

8



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9

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

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

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





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

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

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





























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

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



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

























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INTRODUCTION











 

 

 



















































SURS Retirement Savings Plan (RSP)





















ELIGIBILITY































• 







• 





• 



• 



CONTRIBUTIONS

Employee Contributions























EMPLOYEE CONTRIBUTION CHART

Percentage of

Gross Earnings



it is Applied

 







 

 















Maximum Pensionable Earnings







































Social Security

























Employer Contributions







SERVICE CREDIT





























LENGTH OF

EMPLOYMENT

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 

 

 

 





























































For example, two members are the same age and

are certied as contributing SURS members on

the same date. One member may work full-time

(100%) for 10 years. Another may work 10 years,

but their employment percentage has varied. They

have three years at 20%, two years at 30%, and

ve years at 10%.

Because both started on the same day, they will

qualify for benets on the same day, even though

one is full time and the other is part time. How-

ever, when the benet is actually calculated,

the part-time member’s service may be reduced

because his/her percentage of time is 50% or less.

This will aect the number of service years that

can be used in calculating the retirement amount.











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





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











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































Note: The forfeited

salary will be subject to the Maximum Pension-

able Earnings limit (see Page 2 for more informa-

tion about this limit).





• 

• 

• 































































Please note that the

“3 in 10 year” rule and the “return from leave”

requirements discussed earlier in the section must

be met.

Disability Leave























Note: The basic compensation and earnings will

be subject to the Maximum Pensionable Earnings

limit (see Page 2 for more information about this

limit).

Unused Sick Leave































*Except that, if the sick leave payment has been

collectively bargained between the employer and

the recognized collective bargaining agent pursu-

ant to the Illinois Educational Labor Relations

Act, payment received during a period of up to

two academic years for unused sick leave may

be considered as earnings in accordance with

the applicable collective bargaining agreement,

subject to the 20% increase limitation in the nal

average earnings. Any unused sick leave consid-

ered as earnings in the nal average earnings

shall not be taken into account in calculating

service credit.

UNUSED, UNPAID SICK LEAVE

Additional

Full Work Days

Service Credit

 

 

 

 



SURS-Covered Employer

















Note: The full-time

rate will be subject to the Maximum Pensionable

Earnings limit (see Page 2 for more information

about this limit).





• 





• 











Military Service

Military Leave









• 





• 























































































Note: The full-time rate will be subject to the

Maximum Pensionable Earnings limit (see Page 2

for more information about this limit).





• 





• 











Eligibility

• 









• 















• 









• 





 





 











• 









• 





• 

















• 

• 



• 



• 

• 

• 

• 

• 



• 



• 



• 



• 



















Calculated Under Reciprocity































Repayment of a Separation Refund





















• 





• 



















































EFFECTIVE INTEREST RATE TABLE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CLAIMING YOUR BENEFITS







• 

• 

• 

• 

• 





DISABILITY BENEFITS





































































































• 



• 



































For example, if you become disabled on Nov. 7, the

benet will begin 60 days later, on Jan. 6 – assum-

ing you were not eligible for sick leave or vacation

pay beyond Jan. 6.

Your benet will begin to accrue on Jan. 6 and will

be a prorated benet for the period between Jan. 6

and Jan. 31. Future payments will also be mailed

at the end of each month and will include a benet

for the full month.









• 



• 









Note: The basic compensa-

tion will be subject to the Maximum Pensionable

Earnings limit (see Page 2 for more information

about this limit).

Here’s an example: Assume your monthly income

prior to your disability was $1,600. Let’s also

assume your average monthly earnings for the

24 months prior to the date you became disabled

was $1,300. Since $1,600 is greater than $1,300,

your disability benet would be 50% of $1,600, or

$800 a month.







































• 







• 



















An example of a benet reduction for part-time

employment: Assume you were receiving a dis-

ability benet of $800 a month, as in the previous

example. Through part-time employment, you also

earn $900 a month. Your disability benet would

be reduced by $100, so that your total monthly

income would be $1,600, or 100% of your earn-

ings prior to your disability.

How Participation in a Reciprocal



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

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

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

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

Note: The earnings will be subject to

the Maximum Pensionable Earnings limit

(see Page 2 for more information about this

limit).

• 

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

• 



If You Return to Work

and Become Disabled Again





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





• 























DISABILITY RETIREMENT











• 





• 



Note: The basic

compensation will be subject to the Maxi-

mum Pensionable Earnings limit (see Page

2 for more information about this limit).

• 

































• 



• 









DRA Payments and Amount

















Note: The basic compensation will be subject to

the Maximum Pensionable Earnings limit (see

Page 2 for more information about this limit).













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



















If You Die Before Retirement









• 





• 



• 





















• 













• 



• 



• 















• 







• 













• 





SURVIVOR BENEFITS FORMULA



Maximum Formulas



















Minimum Formula













SURVIVOR BENEFITS

BEFORE OR AFTER RETIREMENT



























   

   

   

   

   











Automatic Annual Increase





• 









For example, if the annuity begins on Aug. 1,

2009, the rst anniversary date will be Aug.

1, 2010, so the rst 3% increase will take ef-

fect Jan. 1, 2011.

• 





















For example, if your annuity begins on Dec.

1, 2021, the rst anniversary date will be

Dec. 1, 2022, so the rst increase will take

eect Jan. 1, 2023.

If You Die After Retirement or DRA











• 





• 

• 









• 













• 



• 



• 







• 







• 































Automatic Annual Increase









• 





• 















For example, if your annuity begins on Aug.

1, 2012, the rst increase will take eect Jan.

1, 2013.

Supplemental Minimum Annuity Guarantee













































RETIREMENT BENEFITS









If you rst began participation prior to Jan. 1,

2011, you are eligible to receive a retirement an-

nuity when you satisfy any of the following:

• 







• 



• 





* The eight years at age 55 and ve years

at age 62 cannot include any OPE you have

purchased (see OPE section on Page 5).

If you rst began participation on or after Jan.

1, 2011, you are eligible to receive a retirement

annuity when you satisfy any of the following:

• 







• 



*The indicated minimum required service

years cannot include any OPE you have pur-

chased (see OPE section on Page 5).















• 

• 

• 

• 

*See the descriptions of the indicated calculations

for eligibility information.













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

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



If you rst began participation prior to Jan. 1,

2011:

• 



















• 







• 















If you rst began participation on or after Jan.

1, 2011:

• 















• 









* Note: Only the Maximum Pensionable

Earnings may be used in this calculation (see

Page 2 for more information about this limit).

Final Average Earnings Basics













































• 



• 



• 



• 







HOW YOUR RETIREMENT

BENEFIT IS CALCULATED

General Formula







• Note: Ser-

vice may be reduced by SURS at retirement

for part-time employment (see Page 3)

• 









• 







For example, if you retire at age 67 in the year

2012 with 25 years of service credit, with a nal

average earnings of $52,500, SURS multiplies

$52,500 by the annual percentage of 55% (see

2.2% General Formula tables). Based on this,

your annual General Formula amount would be

$28,875 (about $2,400 per month).

General Formula Tables



















GRADUATED PERCENTAGE TABLE





Years of

Service

Age

62 60+* 59 58 57 56 55

5 

     

6 

     

7 

     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



   

 



     

38*



     

39*



     

40*



     

40+*



     



















Years of

Service

Age

62 60+* 59 58 57 56 55

5 

     

6 

     

7 

     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     



     

30*



     

31*



     

32*



     

33*



     

34*



     



     



     

36.364



     

















Years of

Service

Age

67+ 66 65 64 63 62

< 10

     

10      

11      

12      

13      

14      

15      

16      

17      

18      

19      

20      

21      

22      

23      

24      

25      

26      

27      

28      

29      

30      

31      

32      

33      

34      

35      

36      

36.364+      









Early Retirement Reduction









• 



• 



* The age reduction would not apply if your

participation began prior to Jan. 1, 2011, and

you have 30 or more years of service credit or

are disabled and continue to be disabled after

disability benets expire.



*This calculation is not available to participants

who began SURS-covered employment on or after

July 1, 2005.















• 





• 





• 







• 





















PAYABLE FOR THE LIFE OF THE ANNUITANT







Age

Months

0 1 2 3 4 5 6 7 8 9 10 11

           

           

           

           

           

           

           

           

         

 

           

           

           

           

           

           

           

           

           

           



          

           

           

           

           

           

           

           

           

           

    

      

           

           

           

           

           

           

MONEY PURCHASE INTEREST RATES



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 









Minimum Annuity Formula

















MINIMUM ANNUITY CHART

Final

Average

Earnings

Minimum

Monthly

Annuity

Minimum

Annual

Annuity

  

  

  

  

  

  

  

  

Supplemental Minimum

Annuity Guarantee

































































Reversionary Annuity

























Option 1: 







Option 2:





























, 

Your Age at Retirement

55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

Age of Beneciary at Retirement

               

               

               

               

               

               

      

        

               

               

               

               

               

               

               

               

               

               

               

               

               

               





in addition to





Special Features for

























Employee Contributions























*Note: If the member waives the right to make the

additional contributions, retirement benets will

only be computed under the remaining eligible

retirement calculation methods.







If you rst began participation prior to Jan. 1,

2011:

• 





• 





, 

Your Age at Retirement

55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

Age of Beneciary at Retirement

               

               

               

               

               

               

      

        

               

               

               

               

               

               

               

               

               

               

               

               

               

               









If you rst began participation on or after Jan.

1, 2011:

• 





Eligibility for Special Formula





































POLICE & FIREFIGHTER FORMULA

Years of

Police or

Fire Service

Total

Annual

Percent

10-Year

Period

Cumulative

Total

   

  





  





  

















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















Direct Deposits



























Income Tax Information

Federal Income Tax











































































State Income Tax













Mandatory Distributions







































Employment After Retirement





















• 





• 















Example: If your highest academic year

earnings during your career were $50,000

and your annual base annuity is $24,000

($2,000/mo x 12 months), your annual

earnings limitation would be $26,000

($50,000-$24,000).

• 















































Automatic Annual Increase (AAI)





If you rst began participation prior to Jan. 1,

2011:











Example: If your annuity begins on 3/1/2012, the

rst increase will take eect 1/1/2013. Since you

would have received 10 months of annuity pay-

ments in 2012, the rst increase would be prorat-

ed so that you receive 10/12ths of a 3% increase.

The following Jan. 1, you would receive a full 3%

increase.

If you rst began participation on or after Jan.

1, 2011:





















Example: If your annuity begins on 3/1/2021 at

age 62, the rst increase will take eect 1/1/2027,

which is the latter of the Jan. 1 after your 67th

birth date (1/1/2027) and the Jan. 1 on or after

the rst anniversary of the annuity commencement

(1/1/2023).

HEALTH INSURANCE











Community College















































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

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



















Amount of Refund

















Taxability of a Refund

























• 







• 

• 



• 















Rollover of a Refund

































OTHER INFORMATION













Divorce





























Appeal Procedure



















































.

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

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







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































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





SURS Website (www.surs.org)



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

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

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

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LOCATION MAP





130

Curtis

Windsor

Kirby

Springfield

Devonshire

Green

University

Church

St. Mary’s

Fox

Duncan

Mattis

Prospect

First

Lincoln

Vine

Florida

Neil

State

SURS

Neil

Lincoln

Prospect

Cunningham

Memorial

Stadium

Bradley

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