1. Self-Managed Plan (SMP) 401(a) Defined Contribution Plan Serving Employees of Illinois Community Colleges and Universities

2. Contributions 8.0% Employee 7.1% State (total 7.6% with.50 for disability contribution) 15.1% total invested* *Subject to current IRS code 415(c) limits Serving Employees of Illinois Community Colleges and Universities

3. Contributions State contributions will begin with… “The first full payroll following receipt of the SMP election form” Account Balance transferred to fund choice(s) within 21 days from receipt of election form Normal contributions are transferred 3-5 days after receipt from employer Serving Employees of Illinois Community Colleges and Universities

4. Allocation of Contributions You may choose any or all 52 funds within SMP. Provided by: Fidelity Investments TIAA-CREF. You may change the % of your contribution to each Provider daily: Phone SURS or… Logon to website, then… phone Provider(s) to choose fund(s) Serving Employees of Illinois Community Colleges and Universities

5. “Fund Overview”, from www.surs.org Serving Employees of Illinois Community Colleges and Universities

6. What should you do? REVIEW! REBALANCE! DIVERSITY! Serving Employees of Illinois Community Colleges and Universities

7. Investment Fund Transfers Funds with same Provider: You may transfer among funds offered daily: Phone the Provider or… Register with Provider and change on-line Transfer to different Provider: You may transfer once per quarter: “Provider-to-Provider” transfer form required o Phone SURS or… o SURS website…”Forms & Guides” Serving Employees of Illinois Community Colleges and Universities

8. When can you retire? Age 55 with 8 yrs of service credit Age 62 with 5 yrs of service credit Any age with 30 years of service credit Police/Fire age 50 with 25 yrs, age 55 with 20 yrs. Serving Employees of Illinois Community Colleges and Universities

9. Accumulating Service Credit Service Credit Earned: 15 or more calendar days=1 month 1-2 months=.25 year 3-5 months=.50 year 6-7 months=.75 year 8 months+ =1.00 year Serving Employees of Illinois Community Colleges and Universities

10. Unused/Unpaid Sick Leave Converted to extra service, will be used for: Vesting Eligibility to retire (5 or 8 yrs.) Annuity Begin Date must be within 60 days of termination to include service credit converted from Sick Leave! Serving Employees of Illinois Community Colleges and Universities

11. Unused/Unpaid Sick Leave Unused/unpaid sick leave reported by employer upon termination of employment Full Work Days = Additional Service Credit 20-59 days.25 year 60-119 days.50 year 120-179 days.75 year 180 days or more 1.00 full year Serving Employees of Illinois Community Colleges and Universities

12. Purchasing Service Credit Will NOT be matched by the State! “Active” employee: Prior Service Other Public Employment-does NOT count toward vesting or retirement eligibility Military- does NOT count toward vesting, does count toward retirement eligibility Deferred Leave of Absence (w/o pay) Serving Employees of Illinois Community Colleges and Universities

13. Purchasing Service Credit “Active” or “Terminated” employee: Repayment of Refund-need 2 years service following date of refund to repay How do I purchase Service Credit? Rollover of Qualified $ After Tax $ Installment purchase, if active Serving Employees of Illinois Community Colleges and Universities

14. Purchasing Service Credit Why purchase service credit? Vesting-to attain minimum service requirement Increase-annuity benefit with purchase cost Tax deferral-if installment purchase, reduce current taxes and defer until distribution Insurance-if University employed, may reduce premium cost Please call SURS for details! Serving Employees of Illinois Community Colleges and Universities

15. Reciprocal Act Must have participated in at least 1 of the other 12 Reciprocal Systems in Illinois and earned at least 1 year of credit Must meet each system’s minimum service credit requirement Earnings from all systems will be considered for your final average earnings Serving Employees of Illinois Community Colleges and Universities

16. Options at Termination Leave money with SURS Rollover to another Qualified Plan Lump sum refund-( 20% withheld for taxes + 10% penalty if not 59 1/2) <5 yrs…state match forfeited >5 yrs…entitled to the entire acct. val. Serving Employees of Illinois Community Colleges and Universities

17. Retirement Same choice with each Provider: Rollover to another Qualified plan Lump sum (20% withheld for taxes) Lifetime Monthly Annuity* o Single Life or with 10, 15 or 20 year guarantee o Joint and Survivor (J&S) 50% or 100% or with 10, 15, or 20 year guarantee *necessary to be eligible for insurance Serving Employees of Illinois Community Colleges and Universities

18. What’s Needed to Retire? SURS must have: Termination report from employer All contributions (last payroll) State matching $ Verification of birth and marriage Retirement application Serving Employees of Illinois Community Colleges and Universities

19. Retirement Application Obtain Application: www.surs.org, “Self-Managed”, “Forms & Guides” or… Call SURS Submit within 90-days from the Annuity Begin Date Serving Employees of Illinois Community Colleges and Universities

20. On-line Forms-www.surs.org Serving Employees of Illinois Community Colleges and Universities

21. Returning to Work after Retirement Self Managed Plan has no time limit or earnings limitation for returning to work! No longer eligible to make contributions to SURS Serving Employees of Illinois Community Colleges and Universities

22. Death “Active” employee benefit recipients: Spouse-w/o Survivor Waiver Lifetime annuity, lump sum or rollover Beneficiary-lump sum Estate-lump sum With 1.5 years, benefit includes state match Serving Employees of Illinois Community Colleges and Universities

23. Death “Terminated” employee benefit recipients: Spouse-w/o Survivor Waiver Lifetime annuity, lump sum or rollover Beneficiary-lump sum Estate-lump sum With 5 years, Benefit includes state match Serving Employees of Illinois Community Colleges and Universities

24. Death “Retired” employee: Benefits to your designated beneficiaries will be determined by the annuity contract purchased at the time of your retirement. Serving Employees of Illinois Community Colleges and Universities

25. Contact SURS to: Change address & other personal info Change beneficiary Reallocate contributions Choose Provider(s) Coordinate withdrawals Inquire about SURS Unified Statement Serving Employees of Illinois Community Colleges and Universities

26. Contact Provider(s) to: Seek investment education Determine appropriate asset mix Allocate investment Funds Inquire about quarterly statements Obtain estimate of benefits Serving Employees of Illinois Community Colleges and Universities

27. Fund Info. & Estimates: TIAA-CREF….1-888-219-8310 www.tiaa-cref.org/illinois Fidelity……….1-800-343-0860 www.fidelity.com/atwork * Principal…1-877-210-5565x202 RRC@exchange.principal.com * annuity payout only Serving Employees of Illinois Community Colleges and Universities

28. Processes, Forms, Plan Info. or Detailed Questions: SURS: Phone: 1-800-275-7877 (local-378-8800) FAX:1-217-378-9800 www.surs.org Serving Employees of Illinois Community Colleges and Universities

29. Disclaimer All aspects of administration of the State Universities Retirement System (SURS), including but not limited to benefit calculation and payment, must comply with state and federal law. No employee of SURS has the authority to bind the system to take action contrary to law, even in the event of misstatement of fact or law. Furthermore, while this letter states SURS’s current understanding of the law, this could change as a result of court opinions, statutory changes, or other matters (e.g., Attorney General opinions). Accordingly, SURS is required under law to correct any mistake in benefit amount, even after payments have begun. Use of any information from this letter, form, or any other document provided by SURS is for general information only and does not represent personal tax or legal advice either express or implied. You must seek professional legal or tax advice for personal income tax questions and other legal assistance. Serving Employees of Illinois Community Colleges and Universities