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Retirement

BENEFIT INFORMATION REGARDING RETIREMENT, SOCIAL SECURITY AND MEDICARE

State Universities Retirement System (SURS)        

  • All new employees in permanent and continuous positions, regardless of percentage of employment, are required to participate in the State Universities Retirement System (SURS).  SURS provides disability benefits, retirement annuity benefits, survivors insurance, early retirement benefit and the tax sheltering of an 8% employee contribution. 
  • In case of illness, disability benefits are available to an employee who has been a participant of SURS for at least two (2) years.  No minimum participation is required if the disability results from an accident. 
     
  • The employee contribution to SURS is mandatory.  Employee contributions may be withdrawn at the time of death, retirement or resignation.  Refund of contributions at the time of resignation may be subject to a penalty.
     
  • There are three (3) different SURS options available that employees may choose from for their retirement.
    •  Option 1: The Traditional (defined benefit) plan offers retirement annuity, survivors’ benefits, death benefits or refund of employee contributions.
    •  Option 2: The Portable (defined benefit) plan offers retirement annuity and more lucrative refund if eligible.  No survivor benefits are available unless purchased by the employee.
    •  Option 3: The Self-Managed (defined contribution) plan allows the employee to invest in several different investment options.  A retirement annuity is available.  No survivor benefits are available.  Refund options include the employee contributions plus investment return.
  • New employees have six (6) months to choose the option in which they will participate.  The choice is irrevocable
     
  • The 8% employee contribution will begin with the first payroll upon employment. 
     
  • If the employee chooses the Self-Managed Plan Option – the employer contribution of 7.60% will begin with the first full payroll after the election is submitted to SURS.
  • Employees are vested in the retirement system after 5 or 10 years of participation in the retirement system depending on the date they were certified in a state reciprocal system. 

For additional information on the SURS retirement plans you may go to the following website:  www.surs.org

 

Social Security

  • Employees eligible for SURS will not contribute to Social Security but will contribute 1.45% to Medicare.  Therefore, during employment with SIU School of Medicine you will not earn any quarters towards Social Security.  Also at the time of retirement with the State Universities Retirement System any benefit that may be payable under Social Security may be offset by the amount of your SURS annuity. 

For additional information on Social Security offsets you may go to the following websites: http://www.ssa.gov/pubs/10007.html and http://www.ssa.gov/pubs/10045.html#footnote-1

 

Medicare

  • All new employees are required to contribute 1.45% of their gross earnings after optional health and life insurance premiums (life insurance premiums up to $50,000 coverage), dependent and/or medical care assistance to the Medicare portion of Social Security.