SURS Facts – Retirement Savings Plan (RSP) Retirement

General Information

• You can schedule an RSP counseling appointment once every 12 months.
• If discrepancies exist due to omissions, errors or future changes in the law, the statute and RSP Plan Document will govern.
• Any payments for service credit must be made prior to your effective date of retirement.
• You are encouraged to call the SURS Defined Contribution Contact Center at 800-613-9543 to discuss how your funds should be allocated as you approach retirement.

Filing for Retirement

• Your application should be on file with SURS at least 60 days prior to your intended retirement start date.
• If you have service time with another public retirement system in the state of Illinois, you should also contact that system(s) for an application.
• If your RSP Retirement Application is not on file with SURS at least 60 days prior to your retirement start date, your retirement benefits and insurance eligibility could be delayed.
• Forms are available on the SURS secure Member Website.

Required Documentation

• A copy of your birth certificate, military discharge papers, current passport or passport card, or valid driver’s license.
• A copy of your spouse’s, civil union partner’s, or primary beneficiary’s birth certificate, military discharge papers, current passport or passport card, or valid driver’s license.
• If applicable, a copy of your marriage certificate, dissolution of marriage, or spouse’s or civil union partner’s death certificate. 

Application Process

• Obtain income illustration(s) – You are encouraged to review your income options carefully. To obtain this information, if you are within four (4) years of retirement eligibility, you may schedule a counseling appointment with a SURS counselor. This information can also be obtained by contacting the providers directly. See contact information below.
• Set up counseling appointment – To schedule an appointment, go to www.surs.org, click on the “Member Login” button in the upper righthand corner, and log in to your SURS account. The types of appointments currently being offered will be listed there. Appointments are 45 minutes in length.
• Submit original signed application to SURS via postal mail or physical drop off at the Champaign office.
  • Any changes to your retirement election must be made prior to your selected retirement start date. If you wish to make a change to the election made on your retirement application and it is after your selected retirement start date, but before benefit payment has begun, a signed letter with your original signature must be mailed to SURS requesting that your retirement claim be cancelled. You will then need to file a new application with a later retirement start date.
• SURS submits the application to the provider(s) –
  • The following must be received for SURS to submit the application:
    • Termination report from the employer
    • Last payroll and payroll verification
    • State matching funds
    • All applicable documents

SP Lifetime Income Distribution Options

SURS Lifetime Income Strategy (LIS) – SURS LIS is a flexible investment strategy that automatically adjusts as you age. You choose your retirement age and the secure income level that you would like to achieve. As you near your target retirement age, your investments become more conservative and begin to secure lifetime income for retirement.

NOTE: You will typically not receive a monthly payment until approximately two to three months after you retire. SURS LIS plan year begins on your birthdate each year. The first partial year benefit is pro-rated based on the number of months between the first of the month following activation (two to three months after date of retirement) and your next birthdate.

• Lifetime Monthly Income – Your options are based on the amount of money secured in the SURS LIS as of your retirement date.
• Single-Life Income – You receive monthly payments for life.
• 100% Joint and Survivor Income – You receive reduced monthly payments for life, with continued monthly payments to your spouse or civil union partner in the event of your death. (Spouse/civil union partner is the only qualifying type of survivor.)
• Hybrid Benefit – Lifetime income (single-life and joint and survivor income options) and retain access to partial account balance for future distributions.
• Death Benefit – If no survivor benefits are payable, or if an account balance remains after a spouse’s or civil union partner’s death, your beneficiary is eligible to receive the balance of your LIS account.

Lifetime Annuity (Principal Financial Group) With an annuity, you convert your account balance to lifetime monthly income. The amount of income you receive is based on your account balance and annuity payout rates at the time of retirement. You will receive the determined amount each month as long as you are living. Depending on the type of annuity you purchase, monthly payments may continue after your death, but a lump-sum death benefit is not payable.

NOTE: You will typically not receive a monthly payment until approximately two to three months after you retire. When your claim is finalized, Principal will “back pay” to your retirement date if you elect to enroll in the State Employee Group Insurance Plan or the College Insurance Plan.

Lifetime annuity payout options based on your account value at retirement.

• Single-Life Annuity – You receive monthly payments for life.
• Single-Life Annuity with guarantee period (of 10, 15, or 20 years) – If you die before the end of your chosen guaranteed period, monthly payments will continue to your designated beneficiary until the end of the guaranteed period.
• Joint and Survivor Annuity – You receive reduced monthly payments for life, with continued monthly payments to your designated survivor for life in an amount equal to either 50% or 100% of your monthly benefit.
• Joint and Survivor Annuity with guaranteed period (of 10, 15, or 20 years) – After you die, monthly payments will continue to your designated survivor for life in an amount equal to either 50% or 100% of your monthly benefit. If both you and your designated beneficiary die before the end of your chosen guaranteed period, monthly payments will continue to your beneficiary in an amount equal to 50% or 100% of your monthly benefit until the end of the guaranteed period.

Lifetime Annuity (TIAA)

• Annuity options are available for SURS members who have assets that remain at TIAA.
• Contact TIAA directly to obtain annuity illustrations.

Insurance

• In order to qualify for retiree health insurance, you must be receiving lifetime income and do the following at retirement:
  • If you have assets in the SURS Lifetime Income Strategy, convert at least 50% of your SURS LIS account balance to secure income.
  • If you have assets in the core funds, annuitize 100% of those assets or move them to the SURS LIS to be used in the SURS LIS 50% calculation.
  • A combination of the above two options is also permitted. You may convert at least 50% of your SURS LIS account balance to secure income and purchase an annuity through Principal with 100% of your assets that are invested in the SURS core funds.

• Insurance coverage (if applicable) begins as of the Annuity Begin Date.
• RSP annuitants are billed directly for the insurance premiums.
• You must choose a Joint and Survivor Annuity for your spouse or eligible survivor to remain eligible for insurance upon your death.

Return to Work

• Return-to-work and earnings limitations do not apply to RSP members.
• You will not have the option to contribute to SURS when re-employed and may not have the option to participate in the health insurance program as an active employee.

Taxability

• Your annuity will be wholly or partially taxable for federal income tax.
• Your annuity is not taxed by the state of Illinois.
• If you reside in another state, check with that state regarding tax provisions.

Providers

SURS Defined Contribution Contact Center (SURS RSP is hosted by Voya Financial)
800-613-9543

• Contact SURS Defined Contribution Contact Center to request retirement projections if you have assets in the Lifetime Income Strategy (LIS), or
• Access LIS benefit estimator through SURS  secure Member Website. Once logged in to surs.org, click on “View/Manage Retirement Savings Plan (RSP) Account” button. From the Account tab, click on “Lifetime Income Strategy.” Follow the prompt to leave Voya website. Click on “Income Estimator.”

Principal Financial Group

• Annuity illustrations are provided by SURS counselors during pre-retirement counseling. To request an additional illustration, please send a secure email by logging in to your SURS  secure Member Website. Annuity illustrations can only be generated one to two months in the future.

TIAA
800-842-2252
www.tiaa.org

• TIAA offers an annuity option for SURS members who have assets that remain at TIAA. Contact TIAA directly for annuity illustrations.

*Entire process from date of retirement can take approximately 2-3 months.