Deferred Compensation & Tax Sheltered Annuities
(Voluntary Pre-Tax Benefits)
Deferred Compensation
The State of Illinois Employees' Deferred Compensation Plan is a supplemental tax-deferred retirement plan for state employees. In 2009, employees can defer up to $16,500 and employees over age 50 can defer $22,000. The deferrals, together with any earnings, accumulate tax-deferred until the employee terminates service, dies, or incurs unforeseeable financial hardship. Once distributions begin, the distributed monies are fully taxable as ordinary income for federal tax purposes. The funds are never taxed by the State of Illinois.
Tax Sheltered Annuities
For 2009 employees may generally elect tax-sheltered salary reductions of up to $16,500 annually for investment in a 403b account. Employees over 50 may defer $22,000 annually. A listing of approved companies and their agents is provided below. Benefit Services staff at SIU School of Medicine can help new employees better understand the process for enrolling.