Champaign, IL – The State Universities Retirement System (SURS) Board of Trustees on March 1 voted to implement automatic contribution escalation for the System’s Deferred Compensation Plan (DCP) participants effective July 1, 2024. DCP participants who are automatically enrolled in the plan and still in default status will see a 1% increase in their pre-tax contribution each year, up to a maximum default contribution cap of 10%. Members can change their deferral settings at any time.
“The SURS DCP was designed to help members generate additional income for retirement,” said SURS Executive Director Suzanne Mayer. “By participating in the DCP in addition to one of SURS core retirement plans, our members are better positioned to meet their retirement income needs. And now, by automatically increasing contributions each year, they will save more over time, ultimately leading to a larger benefit and a more secure financial future.”
The SURS DCP is a supplemental 457(b) plan designed to complement the SURS core retirement plans (the Traditional, Portable and Retirement Savings Plans). The DCP is a relatively new plan. The first contributions to the plan were accepted in the spring of 2021. As of July 1, 2023, all newly certified SURS members are automatically enrolled into the DCP unless they opt out during a 30-day opt out window.
Members can contribute as little as $10 or 1% of earnings per paycheck on a pre-tax or Roth basis, up to a maximum of $23,000 for 2024. Members who are automatically enrolled in the DCP contribute 3% pre-tax to the default investment option, the SURS Lifetime Income Strategy (LIS).
In other business,
- Trustees approved a commitment of 50 million Euros ($54 million dollars) to Blackstone Real Estate Partners Europe VII, subject to successful contract negotiations. SURS is an investor in the prior fund in the series, Fund VI, making this a continuation of SURS current investment strategy.
Blackstone currently administers approximately $300 million in SURS assets through various portfolios in its Real Assets and Private Equity portfolios.
SURS currently has a $2.6 billion real assets portfolio. - The board accepted a revised Investment Policy document for the SURS defined contribution plans. It has been posted to https://surs.org/wp-content/uploads/DCpolicy.pdf.