To: All Faculty & All Academic Professionals & All Civil Service Staff
           <everybody@illinois.edu> 
    From: "Office of Business and Financial Services" <obfs@uillinois.edu>

Reply-To: obfs@uillinois.edu
 Subject: MASSMAIL - Contributions of Compensable Sick & Vacation Leave

University employees have the opportunity to participate in retirement 
savings plans in addition to SURS, where the employee chooses investment 
option(s) within the plan and invests pre-tax dollars through 
voluntary "salary reduction."  Employee contributions, together with 
interest and earnings accumulation, are deferred from federal and state 
income taxes until the funds are withdrawn. 

Two retirement savings plans are available to University employees:  (1) 
the University of Illinois Supplemental 403(b) Retirement Plan, and (2) 
the State of Illinois 457 Deferred Compensation Plan.  Under both the 
University 403(b) and State of Illinois 457 Deferred Compensation Plans, 
employees who are approaching retirement or separation from University 
service are allowed to make contributions to their 403(b) or 457 plans 
from their accrued compensable sick and vacation leave payout. The 
policies related to this process have been updated to clarify procedures 
and adjust deadline requirements, as follows:

* FOR PLAN 403(B) - The employee must have an account set up with an 
approved investment provider under the plan.  The employee must also 
submit a completed Salary Reduction Agreement form to his/her campus 
Benefits Service Center at least 20 days prior to the last date of 
employment. 

* FOR PLAN 457 - The employee must submit a Deferred Compensation 
Election form to his/her campus Benefits Service Center during the 
calendar month prior to the beginning of the final pay period in which 
the employee will work.   For example, the form should be received by the 
campus Benefits Service Center no later than March 31 if the employee's 
last pay period of work will BEGIN in April.

* The employee's DEPARTMENT must ensure that accurate and appropriate 
compensable sick and vacation leave payouts are approved by the 
department and submitted to the University Payroll office no later than 
45 days after the last date of employment.

Links to required forms and more information related to these policies 
and procedures (including how to enroll in these plans, contribution 
limits, catch up provisions, and other regulations) can be found in the 
policy documents at the links below:

-- See NESSIE for the University's Supplemental 403(b) Retirement Plan 
under Internal Revenue Code 403(b):
<https://nessie.uihr.uillinois.edu/cf/benefits/index.cfm?Item_ID=134>

-- See OBFS Policies & Procedures Manual Section 18.9 for the State of 
Illinois Employees' Deferred Compensation Plan under Internal Revenue 
Code 457:
<http://www.obfs.uillinois.edu/manual/central_p/sec18-9.html>

CONTACT
If you have questions about the 403(b) and/or 457 policies and procedures 
or need further clarification about requirements and timelines, please 
contact your campus Benefits Service Center:

Chicago campus Benefits Service Center (312) 996-6471
Springfield campus Benefits Service Center (217) 206-7142
Urbana campus Benefits Service Center (217) 333-3111


This mailing approved by:
The Office of the President

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