Retirement Savings Plan (RSP) FAQs

Yes.  By law, annual withdrawals from retirement plan accounts called Required Minimum Distributions (RMDs) must begin by April 1 in the year following the year when you reach RMD age.  SURS is required to follow IRS rules on RMDs.

In the first year an RMD is required, SURS mails a letter to the member providing them with a notification that action must be taken. Some members may have enough service credit to be eligible to elect a lifetime monthly benefit while others with insufficient service credit will be required to take a lump-sum distribution. Failure to comply with RMD requirements may result in the member having to pay penalties and interest. RMD age is as follows: 70.5 for members born before July 1, 1949; 72 for members born July 1, 1949 through December 31, 1950; 73 for members born January 1, 1951 through December 31, 1958 (proposed IRS regulations extend this RMD age for those born during 1959); and 75 for members born on or after January 1, 1960. RMD rules apply to a lump-sum distribution and/or a monthly benefit, whichever the member qualifies for or elects. SURS contacts members as they approach RMD age so that the proper paperwork can be completed.

SURS has initiated a forced RMD process to comply with IRS rules. RSP members are given a choice to elect a distribution option prior to SURS forcing out the RMD payments. Failure to file paperwork will result in the following:

• If a member is not vested for retirement benefits, then the full account balance will be paid out.
• If a member is vested for retirement benefits, the default option will be to initiate a lifetime income benefit utilizing the 100% SURS Lifetime Income Strategy (LIS) option. If the member has a spouse, the default will be to use the 100% joint and survivor option.

If you are not vested (less than five years of service credit) you will receive your contributions and the investment earnings on your employee contributions. The state matching contributions and the earnings on those contributions are forfeited. If you are vested you are entitled to receive your employee contributions, the state matching contributions and all investment earnings. Non-retirement eligible members are required to take a refund of 100% of their account balance. 

No. It is not an option in the Retirement Savings Plan. However, with the Lifetime Income Strategy it is possible that your monthly benefit may increase with favorable returns in your underlying investments. 

In order to maintain eligibility for retiree health insurance, you must do the following at retirement: 1. If you have assets in the SURS Lifetime Income Strategy (LIS), convert at least 50% of your SURS LIS account balance to secure income. 2. If you have assets in the core funds (or in any funds remaining at TIAA), annuitize 100% of those assets or move them to the SURS LIS to be used in the SURS LIS calculation. A combination of Nos. 1 and 2 is also permitted. You may convert at least 50% of your SURS LIS account balance to secure income and purchase an annuity with 100% of your assets that are invested in the SURS core funds.

Beneficiaries should contact SURS to request the appropriate claim forms. The claim form should be completed and returned with a certified copy of the death certificate. Benefits are paid out by the providers(s). For more information on death benefits please consult the RSP Member Guide. 

If you meet minimum age and vesting requirements (five years of service credit) at retirement, you will have the following distribution options: 

• Convert all or a portion of your account balance to lifetime income with the SURS Lifetime Income Strategy (single-life or joint-life options available). 
• Purchase a lifetime monthly annuity with Principal Financial Group2 (single-life; single-life with guaranteed period of 10, 15 or 20 years; and 50% and 100% joint and survivor with guaranteed periods options available). 
• Receive a lump-sum payout(s). Members give up eligibility for retiree health insurance with this option. 
• A combination of the above options. Members give up eligibility for health insurance with options that include a lump-sum payout at retirement. You do not have to elect your distribution type until you retire. These options are reviewed in detail during preretirement counseling sessions. Please note that in order to maintain eligibility for retiree health insurance, you must be receiving lifetime income. 

The state of Illinois matches your contribution at a rate of 7.6% of your eligible earnings. Effective 7/1/21 all of the 7.6% is applied to your RSP account.

RSP vesting requirements are as follows:

1. Five years of service at age 62 
2. Eight years of service at age 55 
3. 30 years at any age
4. Police/Firefighters have special vesting – see RSP Member Guide

You may return to work after retirement with no restrictions from SURS. There is not a 60-day waiting period.

There is neither a monthly nor annual earnings limitation. If you return to a SURS-covered employer in any capacity after taking a retirement distribution, you will not contribute to SURS.

If your employment with a SURS-covered employer ends, you may leave your contributions in the RSP or take a distribution of your vested amounts. The decision you make will affect your options if you later return to employment. It is important to understand the following re-employment situation before making your decision to take a pre-retirement or retirement distribution.

Re-Employment After a Pre-Retirement Distribution (not age or service eligible) 

If you take a lump-sum distribution of your vested account balance before you are eligible (meeting vesting and age requirements) to retire, you will resume making contributions to the RSP if you are re-employed with a SURS-covered employer in a SURS-eligible position. 

After you have two years of service subsequent to the date of the distribution, you have the option to repay the refunded distribution amount (without interest) in order to re-establish the contributions and service credits to your account.  

If you are reemployed after receiving a refund under the Traditional Benefit Plan, you may repay the amount of your distribution to the RSP and have your prior service restored after you have remained reemployed for at least two years.  This assumes you withdrew prior to the date the retirement plan choice was available (in general, prior to April 1, 1998) and that, upon your return, your choice the RSP as your permanent option. 

Re-Employment After a Retirement Distribution (retirement age and service eligible)

If you meet retirement vesting requirements and take a lump-sum distribution or any lifetime income option, there is no required waiting period to return to employment and there is no earnings limitation.  However, you will not have the option to contribute to SURS when re-employed by a SURS-covered employer in any capacity at any time in the future.   You will not be able to repay any retirement benefit to re-establish your RSP account. 

IMPORTANT!  Taking a retirement distribution is an irrevocable action, regardless of the distribution option chosen.  If you return to SURS-covered employment or employment covered by an Illinois reciprocal agency, you cannot cancel or undo your retirement in order to recontribute to SURS or later retire under the Illinois Retirement Systems’ Reciprocal Act.  

Re-Employment and Insurance

Please be aware that some SURS-covered employers cannot employ you in a position that provides health insurance benefits if you cannot actively contribute to SURS.  If you return to employment at a SURS-covered employer and you are not eligible to contribute to SURS because you took a retirement distribution, you may not be able to participate in the health insurance program as an active employee.  Therefore, SURS strongly recommends taking a lifetime income option instead of a lump-sum distribution if you are retirement eligible and will need health insurance coverage in the future. 

All purchase types are allowed. There will not be any state match contributions applied to your purchase. You should contact SURS for verification of purchase eligibility and/or updated cost. Purchases may only be made by members actively contributing to SURS. 

Members become vested when they accumulate five years of service credit.

Members who have a minimum of one year of service with a reciprocal system in the state of Illinois may apply for a reciprocal retirement. Members will need to fill out applications with each system. The systems will then share information so that the proper calculations can be done. Each system will be responsible for paying their respective benefit. For RSP members with less than five years of service the reciprocal time may be sufficient to allow you to have the state’s matching contributions reinstated to your account, assuming you retire reciprocally.

An alternate payee may file a Qualified Illinois Domestic Relations Order (QILDRO) claim in a court of law. Attorneys generally handle all paperwork involved with a QILDRO. Once the court has ruled, SURS will distribute funds according to the Calculation Order when it is received. 

No, the employer match is not retroactive. When the initial RSP balance transfer is sent, all prior employer match money is forfeited. The balance transfer consists only of employee contributions. Employer matching funds begin with the first full payroll following the receipt of your RSP election.

Download the Voya Retire app from the Apple or Google play stores. If you are already registered online and participating in the plan, enter the username and password and, if available, enable touch/face ID for easier login the next time. If you are not registered online, change the drop down from username to SSN and then enter the SSN and PIN to follow the prompts to register.

SURS strongly encourages those electing the RSP to enroll electronically. 

If you enroll electronically but want to select provider and fund allocations later, you will need to wait a minimum of 24 to 48 hours. You will then need to go to the SURS Member Website and click on the “View/Manage Retirement Savings Plan (RSP) Account” button, which can also be found under the “Quick Links” tab on the right-hand column. You may also call the Defined Contribution Contact Center at 800-613-9543 for assistance. 

If you enroll via a paper form, you must wait one to two business days from when SURS receives the choice election form to allow for the provider to have you registered in its system. You will then need to go to the SURS Member Website and click on the “View/Manage Retirement Savings Plan (RSP) Account” button, which can also be found under the “Quick Links” tab on the right-hand column. You may also call the Defined Contribution Contact Center at 800-613-9543 for assistance. 

NOTE: Failure to select provider and fund allocations will result in your contributions being placed in the SURS Lifetime Income Strategy (LIS), which serves as the default fund. 

There are two ways for RSP members to schedule an appointment. If you are within four years of retirement you are eligible for an appointment. You may log into your SURS Member Website. In the Attention Box on your homepage a message will appear – “if you are planning to retire within the next four years and would like to schedule a counseling appointment, click here.” Members then follow the steps as directed. The second option is to call 1-800-275-7877 to schedule an appointment. 

Appointments may either be in person, via phone call or virtual via Microsoft Teams meeting. Members are limited to one appointment per 12-month period. 

IMPORTANT: The accuracy of retirement annuity estimates depends on the information provided to SURS. The actual retirement annuity may vary from the estimates provided. Final benefit determination is pursuant to verified date and to the provisions of Chapter 40, Articles 1, 15, and 20 of the Illinois Compiled Statutes. An estimate request is not an application for retirement. Employees must submit a retirement application to SURS to initiate a retirement claim.

Members are encouraged to utilize the single sign on (SSO) technology now being used. This allows members to access the SURS Member website, Voya website and Alliance Bernstein sites by simply logging into the SURS Member website. Members may also access the Voya website only by registering with their social security number (SSN) and personal identification number (PIN) at https://surs.voya.com. You may also access the Voya mobile app by using your PIN. Finally, you may also call the Defined Contribution Contact Center at 800-613-9543 where you will be asked for your PIN as well.

TIAA and Voya statements are made available quarterly. Beginning Sept. 1, 2020, the SURS RSP Unified Statement was discontinued. If you want up-to-date account value, you should access your online account at SURS Retirement Savings Plan website. Members with assets at TIAA may log onto their website for account balances or they will be reflected on the quarterly statements. 

Monthly LIS payments are initiated the first business day of the month. Voya’s process for making these payments takes two days. It includes the funds being released from their bank, State Street, and being routed through the Federal Reserve to individual banks. Once the funds have been received at an individual bank, the bank determines when to post the funds to a member’s account. Bank policies regarding posting funds to accounts vary. As a result, once the funds have arrived at your bank, it can take another one to two days for the deposit to show in your account. Most members will see their funds post to their accounts on the fourth or fifth business day of the month.

Lump-sum rollovers or cash distributions to members follow a similar process. Lump-sum payments are due to members after SURS has forwarded distribution instructions to Voya. Voya must then process the distribution request and prepare the funds to be paid. This process can also take two days, after which the rollover/lump-sum check is mailed to the member.

1. With LIS a member can purchase income over as many as 15 years. This allows you to dollar cost average into your income figure. An annuity on the other hand is a point-in-time purchase. This means that whatever the rate is on that exact day is the one you will receive. If you choose, you may also make a point-in-time purchase of the LIS, such as at retirement. 
2. With an annuity you give your money to the insurance company and they simply pay you a lifetime benefit. With the LIS you retain control of your account balance. It remains invested in a target date fund while paying you a monthly benefit. 
3. The monthly benefit for the annuity is fixed (unless a variable option with TIAA is selected). With the LIS, if the growth of your account balance exceeds the payout and expenses, your annual benefit may increase. Once your annual LIS benefit increases it cannot drop, even if your account balance decreases. 
4. The LIS may provide a death benefit of the account balance at the member’s passing. An annuity will not have a death benefit unless a member purchased a guarantee period which has not been exhausted. 

If members have passed away while actively working, surviving spouses are not eligible to use the LIS. A spouse who is not age 45 on the date of retirement is not eligible to utilize the LIS. 

Yes, you can choose to move assets in and out of the SURS LIS. If you transfer funds out of the SURS LIS, you cannot transfer funds back into the SURS LIS for 90 days. Additionally, if you have already begun securing income and you change your target retirement age or secure income level you cannot transfer additional funds into the SURS LIS for 90 days.