Section 2700.300  Responsibilities of the Department

 

a)         Subject to the general supervision of the Board as provided in Section 2700.310, the Department has the full authority to administer the Plan and promulgate, adopt, amend or revoke internal management procedures that are consistent with, and necessary to implement and maintain, this Plan.

 

b)         The Department, or Recordkeeper, will communicate the obligations contained in this Plan and other information as the Department deems necessary to administer the Plan (e.g., Participant biographical information).

 

c)         The Department shall work with the Pay Agency and Recordkeeper as needed to withdraw and return any excess amount deferred consistent with Section 2700.440(f).  This subsection (c) does not apply to Loan repayments under Section 2700.770.

 

d)         Pamphlets describing this Plan and outlining the options and opportunities available shall be made available to eligible employees.

 

(Source:  Amended at 46 Ill. Reg. 15777, effective August 31, 2022)

 

Section 2700.310  Responsibilities of the Board

 

a)         The Board has the responsibility for general supervision of the Plan, which shall include, but not be limited to:

 

1)         establishment of the Plan;

 

2)         approving or disapproving any proposed changes in the Plan;

 

3)         if deemed necessary by the Board, obtaining Internal Revenue Service and Illinois Department of Revenue approval for the Plan or any amendments to the Plan;

 

4)         reviewing any and all proposed investment offerings, each of which must be determined acceptable by the Board prior to being utilized for the investment of Deferred Compensation;

 

5)         providing the Recordkeeper with the most recent copy of the Plan, the Plan's administrative policies, procedures and forms, the Plan's Investment Options and all Plan data and other documents necessary to perform its functions;

 

6)         maintaining the tax qualification of the Plan under section 457 of the Code;

 

7)         reviewing, selecting and approving the Recordkeeper and the services to be provided by the Recordkeeper; and

 

8)         resolving all benefit claims and claims appeals under the Plan, including, but not limited to, resolving all Loan claims and Loan claims appeals under the Plan.

 

b)         Following approval by the Board of one or more types of investments, if any, to be offered to Participants, the Board shall prepare specifications and make them available to known administrators or providers of that type of investment.

 

c)         The selection of the successful bidder for each investment shall be based on the bidder's relative ability to provide the program as specified. The Board shall have the authority to:

 

1)         waive minor informalities in bidding;

 

2)         accept more than one bid; and

 

3)         reject any and all bids.

 

d)         The Board has the responsibility for selecting the custodians to hold the assets of the Plan in accordance with section 457(g) of the Code and for entering into related custodial agreements in connection with the Plan.

 

(Source:  Amended at 36 Ill. Reg. 17518, effective January 1, 2013)

 

Section 2700.311  Standards Governing the Selection of Investment Options

 

a)         The Board, in consultation with investment staff and an independent investment consultant, is responsible for the selection and monitoring of the Investment Options for the Plan.

 

b)         The objective of the Board is to offer a sufficient range of Investment Options with materially different risk and return characteristics to allow Plan Participants, by choosing among those Investment Options, the opportunity to diversify their account balances and construct portfolios consistent with their unique individual circumstances, goals, time horizons, and tolerance for risk. 

 

c)         The screening process used by the Board to select Investment Options for inclusion in the Plan will consider attributes relevant to the specific asset class and search objective, as developed by the investment staff and investment consultant. The attributes for passively managed investment options designed to track the return and risk characteristics of a specific index may differ from the attributes considered for actively managed strategies. The Board's screening process for certain attributes may differ from the following selection criteria in an effort to identify the most suitable Investment Options. Attributes may include, but are not limited to, the following:

 

1)         Registration with the Securities and Exchange Commission under the Investment Advisors Act of 1940 (15 U.S.C. 80b-1 through 80b-21);

 

2)         A minimum number of years of verifiable firm and team performance history;

 

3)         A minimum number of years for portfolio manager tenure and experience;

 

4)         Robustness of firm's investment philosophy and process;

 

5)         Historical performance and risk review of cumulative, annual and rolling time periods;

 

6)         Classification of style to determine the basis to compare to other investment managers and investment options with similar investment style/strategy and to determine if there has been deviation from style over time;

 

7)         A minimum level of product and strategy size;

 

8)         Firm's trading, back office, accounting, reporting and client servicing capabilities; and

 

9)         Fees.

 

d)         The Board's review and/or evaluation process is expected to consist of the following criteria, as appropriate, and reviews are expected to be conducted in light of full market cycles.

 

1)         Quantitative criteria to be used by the Board to select Investment Options may include, but are not limited to, the following:

 

A)        Adherence to clearly defined investment objectives and style of discipline over time.

 

B)        Historical performance of annual and rolling time periods, and risk metrics such as beta, standard deviation, Sharpe ratio, information ratio, and down-market and up-market capture, versus peers and applicable market indexes.

 

C)        Investment management fees and any additional fees (e.g., 12-b1, administrative, redemption).

 

D)        Sufficient investment strategy and fund assets under management to accommodate the assets of the Plan.

 

2)         Qualitative criteria to be used by the Board to select Investment Options may include, but are not limited to, the following:

 

A)        Investment philosophy and process, including the strategy objective, discipline, valuation process, implementation, and research capabilities;

 

B)        Personnel structure, including portfolio manager and research team experience, quality, tenure, and turnover;

 

C)        Business goals and structure, including ownership, compensation, and incentive practices;

 

D)        Demonstrated commitment to operations and technology efficiencies; and

 

E)        Willingness, pursuant to contract between the Board, on behalf of the Plan, and the investment manager, to meet specified requirements, including the obligation to meet with Board staff and consultant as requested for a review of the performance of the Investment Option.

 

e)         The Board shall use best efforts to include representation of emerging investment managers and minority investment managers in the Plan.  The Plan shall seek to include at least one Investment Option managed by a State certified minority money manager, unless the Board determines that no such entity exists that conforms to the Board's fiduciary responsibility.

 

f)         An independent investment consultant shall be responsible for performing thorough due diligence on each Investment Option, monitoring the performance of the Investment Options on an ongoing basis, and providing a quarterly report to the Board that addresses the performance of each Investment Option relative to the appropriate index and peer universe.

 

g)         The selection of Investment Options for the Plan will occur in an environment of full disclosure characterized by competitive selection, objective evaluation and proper documentation.  The overriding consideration with respect to all decisions made by the Board concerning the Plan is that the decisions be made solely in the best interests of the Plan's Participants and Beneficiaries.  The following protocols guide the Board's selection of Investment Options for the Plan:

 

1)         The Board shall select Investment Options for the Plan, in consultation with its investment staff and independent investment consultant, through a competitive proposal process, using uniform documents for the solicitation, review and acceptance of the Investment Option.  Uniform documents may vary by the investment structure of an Investment Option.  The Board may deviate from this process only if, in consultation with its investment staff and independent investment consultant, it determines that an emergency procurement is in the best interest of the Plan's Participants.

 

2)         The competitive proposal documents shall contain, at a minimum:

 

A)        a description of the goal to be achieved;

 

B)        the particular strategy of Investment Option;

 

C)        the need for the Investment Option;

 

D)        the qualifications that are necessary; and

 

E)        a plan for post-performance review by the Board's investment consultant.

 

3)         The Board and its investment consultant shall determine parameters for the Investment Option search.  Advertisements for the Investment Option search shall be placed in one or more industry periodicals at least 14 days before the response is due.

 

4)         All interested respondents shall return their responses to the Board, as directed by the proposal document.  Investment staff and investment consultant shall open the responses, record them and thoroughly review each for content, quality and compliance with proposal document requirements.

 

5)         Following review and evaluation of the responses from interested firms, the field of candidates is narrowed to a smaller list of the most highly qualified Investment Options.  At this point, the Board's investment staff and investment consultant will meet with representatives of each Investment Option to obtain an independent assessment of each option's capabilities.

 

6)         Following the interviews with the selected Investment Options, the Board's investment staff and investment consultant will recommend to the Board one or more Investment Options for the Plan.  Generally, the finalists appear before the Board to present their qualifications.

 

7)         The Board will accept or modify the recommendation and is tasked with making the final decision with respect to the Investment Options for the Plan.

 

8)         Subsequent to the Board's decision, the Board's legal counsel, investment staff and investment consultant will coordinate with representatives of the Investment Option, Department and the Recordkeeper, in order to provide an appropriate transition for the new Investment Option into the Plan and provide appropriate notice of the transition to the Plan.

 

(Source:  Amended at 47 Ill. Reg. 12412, effective August 4, 2023)

 

Section 2700.312  Responsibilities of the Pay Agency

 

a)         The Pay Agency shall receive salary deferral elections and revocations from the Recordkeeper and the Department and then apply them to the first appropriate Pay Period and ongoing Pay Periods according to the rules of the Plan.

 

b)         The Pay Agency shall monitor for and suspend a Participant's deferrals for the remainder of the calendar year when the Participant has deferred the allowable maximum.

 

c)         The Pay Agency shall work with the Department and Recordkeeper as needed to withdraw and return any excess amount deferred consistent with Section 2700.440(f).  This subsection (c) does not apply to Loan repayments under Section 2700.770.

 

(Source:  Added at 46 Ill. Reg. 15777, effective August 31, 2022)

 

Section 2700.315  Responsibilities of the Recordkeeper

 

The Recordkeeper shall:

 

a)         accept Plan contributions from the Department and cause those contributions to be invested among the Investment Options, as directed by the Participant;

 

b)         accept Plan enrollments and deferral elections from Participants on behalf of the State of Illinois containing the amounts and/or percentages of Compensation to be deferred and communicate any changes to the Pay Agencies;

 

c)         process distributions upon receipt of information from the Department that indicates that a Participant is eligible for distribution;

 

d)         process changes to Investment Options, as directed by the Board;

 

e)         process changes to investment allocations, as requested by the Participant, provided that the allocation is made to one of the available Investment Options and that the allocation reconciles with the Department's instructions, based upon the request from the Participant, for allocating the contribution;

 

f)         provide the production, printing and assembly of enrollment kits for distribution to eligible employees and provide enrollment representatives to assist with employee meetings;

 

g)         prepare and distribute any notices required under Internal Revenue Code, including but not limited to annual notices to Participants who are automatically enrolled in the plan pursuant to Section 2700.410.

 

h)         process all requests for hardship distribution due to an Unforeseeable Emergency resulting from:

 

1)         payment for the burial or funeral expenses for the parent, spouse and/or qualifying dependent of the Participant;

 

2)         costs associated with preventing eviction from, or foreclosure on the mortgage of, the Participant's primary residence;

 

3)         expenses for the repair of damage to the Participant's principal residence that would qualify for the casualty deduction under section 165 of the Code (regardless of whether the loss exceeds 10% of the Participant's adjusted gross income) beyond insurance reimbursement;

 

4)         unreimbursed medical expenses resulting from sudden illness or accident of the Participant or the Participant's spouse and/or qualifying dependents;

 

5)         expenses and losses, including loss of income, incurred due to a disaster declared by the Federal Emergency Management Agency (FEMA) where the Participant's principal residence or principal place of employment is located in an area for which FEMA is providing individual assistance for the disaster; or

 

6)         other extraordinary and unforeseeable circumstances arising as a result of events beyond the Participant's control that create a financial hardship;

 

i)          review and forward all requests for hardship distribution for an Unforeseeable Emergency as governed by 26 CFR 1.457-6 (2012), resulting from a cause not contemplated in subsection (h) to the Hardship Committee for review and determination;

 

j)          process all Loan applications, Loan repayments, Loan defaults and reamortizations;

 

k)         communicate with Participants regarding the Plan's Participant Loan feature and notify Participants regarding delinquent Loan payments and other Loan-related matters;

 

l)          prepare and distribute quarterly account statements to Participants;

 

m)        communicate with Participants regarding the costs and available Investment Options under the Plan, matters relating to investment education, and other information required in order to maintain qualification of the Plan or as otherwise agreed with the Board or the Department;

 

n)         enter data provided by the Department into its recordkeeping system for the proper operation and maintenance of the records of the Plan;

 

o)         provide Code section 457 compliance monitoring, monitor for compliance with laws governing the use of electronic media for providing employee benefits notices and making benefit elections and consents, and monitor distributions in the normal course, plan-to-plan transfers, Loans and rollovers to ensure compliance with the terms of the Plan;

 

p)         provide Participant access to daily pricing valuations through its on-line access system, as well as provide directions and/or direct links to other pricing calculators when applicable;

 

q)         monitor, calculate and process required minimum distributions under Section 401(a)(9) of the Code; and

 

r)          accept and store beneficiary designations made by Participants on or after June 15, 2020.

 

(Source:  Amended at 47 Ill. Reg. 12412, effective August 4, 2023)

 

Section 2700.320  Deferred Compensation Hardship Committee

 

a)         A Hardship Committee shall be formed that shall be responsible for determining whether any Participant has suffered an Unforeseeable Emergency and is entitled to a distribution under Section 2700.740 of this Part.

 

b)         Members of the Hardship Committee shall include:

 

1)         one Department employee;

 

2)         one representative of the Board; and

 

3)         one person appointed by the Department who is not an employee of the Department.

 

c)         Members of this Committee shall be entitled to defer Compensation so long as they are otherwise eligible; however, no member of the Hardship Committee shall make any determination with respect to any interest that he or she may have under the Plan.

 

(Source:  Amended at 33 Ill. Reg. 13451, effective September 14, 2009)

 

Section 2700.330  Applicable Law

 

This Plan shall be construed, administered and governed in all respects under and by the laws of the State of Illinois and the Code.

SUBPART D: PARTICIPATION IN THE PLAN

 

Section 2700.400  Eligibility

 

All Employees shall be eligible to participate in the Plan and defer Compensation immediately upon becoming employed by the Employer.

 

(Source:  Amended at 46 Ill. Reg. 15777, effective August 31, 2022)

 

Section 2700.410  Enrollment

 

a)         Auto-Enrollment Eligible Employees

 

1)         An Auto-Enrollment Eligible Employee may make one of two affirmative elections during the Auto-Enrollment Opt-Out period:

 

A)        Not to have Contributions made; or

 

B)        To become a Participant in the Plan under subsection (b). 

 

2)         An Auto-Enrollment Eligible Employee who does not make one of the two affirmative elections under subsection (a)(1) during the Auto-Enrollment Opt-Out Period will be automatically enrolled and become a Participant of the Plan following the end of the Auto-Enrollment Opt-Out Period and shall have 3% of their Compensation for each Pay Period deferred on a pretax basis into their Deferred Compensation Account. The Board may increase this default percentage amount of compensation deferred into employee accounts. (See Section 24-105.2 of the Illinois Pension Code.)

 

b)         Any Employee eligible to participate in the Plan may become a Participant by agreeing to a deferral of their Compensation on a pretax or Roth basis.

 

c)         The amount to be deferred shall be selected by the Participant at the time of enrollment, unless the Participant is automatically enrolled under subsection (a). This amount may not be less than the minimum amount allowable or exceed the basic annual limitation.

 

d)         The deferral shall commence no sooner than the first Pay Period of the month following the date the deferral election is completed by the Employee, or the Employee is automatically enrolled in accordance with subsection (a).  However, the deferral shall only commence in that Pay Period if the Pay Agency payroll has not closed, and provided that the election is completed in good order in the month prior to the month in which the deferrals commence.

 

e)         The amount deferred may be changed by the Participant at any time. The change shall become effective no sooner than the first Pay Period of the month following the date the election is made by the Employee.

 

f)         A Participant's request to defer Compensation shall remain in effect until the Participant's Severance from Employment, unless revoked prior to that time.  The Pay Agency shall suspend deferrals for the remainder of the calendar year for Participants who have deferred the allowable maximum. If a Participant defers in excess of the allowable maximum, the Department and Pay Agency shall withdraw and return to the Participant the excess amount deferred. Deferrals will resume with the first paycheck received in the following calendar year.

 

g)         Deferrals can be made by reductions in Compensation only.

 

h)         The Participant election shall also include the designation of Investment Options.  In the event the Participant fails to designate an Investment Option, the Participant shall be invested in the Plan's Target Date Funds as the Plan's Default Investment Alternative, consistent with the direction from the U.S. Department of Labor, as selected by the Board.  This election shall remain in effect until a new election is filed.

 

i)          An employee who has been automatically enrolled in the Plan may elect, within 90 days after enrollment, to withdraw from the Plan and receive a refund of amounts deferred, as well as any earnings after Plan fees. An employee making such an election shall forfeit all employer matching contributions, if any, made prior to the election. Any refunded amount shall be included in the employee's gross income for the taxable year in which the refund is issued. The effective date of the withdrawal will be as soon as administratively practicable. Unless the Participant affirmatively elects otherwise, any withdrawal request will be treated as an affirmative election to cease having elective deferrals made on the Participant's behalf.

 

j)          After the Auto-Enrollment Opt-Out Period, an Auto-Enrollment Eligible Employee will be invested as follows:

 

1)         If an Auto-Enrollment Eligible Employee does not have a contribution allocation on file, contributions will go into the Plan's Stable Value Fund. 

 

2)         If an Auto-Enrollment Eligible Employee already has a contribution investment allocation on file, the existing allocation will be used instead.

 

k)         If a Participant who does not have a contribution investment allocation already on file does not change the default auto-enrollment arrangement of the Participant's future contribution investment allocation and/or existing investment balances, the existing Stable Value Fund account balance and future Stable Value Fund investment allocations shall be transferred to the Plan's Target Date Funds as soon as administratively possible following the Auto-Enrollment Withdrawal Period.

 

l)          During the Auto-Enrollment Withdrawal Period, Participants may make two separate decisions:

 

1)         To keep, cancel or change the pending mix transaction for future investment allocations; or

 

2)         To keep, cancel or change the pending exchange transaction.

 

m)        Acceptance by the Department shall be granted whenever forms are properly completed and the criteria for acceptance under Section 2700.400 are met.

 

(Source:  Amended at 47 Ill. Reg. 12412, effective August 4, 2023)

 

Section 2700.415  Designation of Beneficiary

 

a)         A Participant may designate a Beneficiary or Beneficiaries who shall receive any balance in the Participant's Deferred Compensation Account in the event of the Participant's death.

 

b)         A designation of Beneficiary shall be effective for subsequent distributions when received by the Department or the Recordkeeper.  The designation shall be provided in a manner prescribed by the Department and Recordkeeper.

 

c)         A Participant may, at any time, change their Beneficiary in a format prescribed by the Department and Recordkeeper on the Recordkeeper's website or a Participant may call the Recordkeeper to request a paper form.

 

d)         No Beneficiary shall have any rights under this Plan until the death of the Participant who has designated the Beneficiary and a separate account has been established by the Recordkeeper. 

 

e)         Participants may designate primary and contingent Beneficiaries.  A contingent Beneficiary's interest shall become effective only upon the death of any and all primary Beneficiaries, or if any and all of the primary Beneficiary designations have been found invalid.

 

f)         If more than one Beneficiary is named in either category, benefits shall be paid according to the following:

 

1)         Beneficiaries can be designated to share equally or to receive specific percentages.

 

2)         If a Beneficiary dies before the Participant, only the surviving Beneficiaries shall be eligible to receive any benefits in the event of the death of the Participant.  If more than two Beneficiaries are originally named to receive different percentages of the benefits, surviving Beneficiaries shall share in the same proportion to each other as indicated in the original designation.

 

g)         A person, trust, estate or other legal entity may be designated as a Beneficiary.

 

h)         If a Beneficiary has not been designated, or a designation is ineffective due to the death of all Primary and Contingent Beneficiaries prior to the death of the Participant, or the designation is ineffective for any reason, the estate of the Participant shall be the Beneficiary.

 

i)          Upon the death of the Participant, any Beneficiary entitled to the value of the Deferred Compensation Account under the provisions of this Section shall become a "vested Beneficiary" and have all the rights of the Participant, with the exception of making any deferrals or applying for a Loan under the Plan.

 

j)          Before the account can be distributed, the Beneficiary must provide the Department or the Recordkeeper with their Social Security Number and a certified copy of the Participant's death certificate.

 

k)         In the event of a conflict between the provisions of this Section and any annuity contract purchased prior to January 1, 1999, this Section shall prevail.

 

(Source:  Amended at 47 Ill. Reg. 12412, effective August 4, 2023)

 

Section 2700.420  Allowable Deferrals

 

a)         Minimum Deferrals.  Each Employee who becomes a Participant must agree to defer a minimum amount of $10 per Pay Period or 1% of Compensation each Pay Period.

 

b)         Maximum Deferrals − No limit.  Participants may contribute any whole percentage or dollar amount up to 100% of currently available Compensation each payroll period, subject to the limitations under Code sections 402(g) and 415.

 

(Source:  Amended at 46 Ill. Reg. 15777, effective August 31, 2022)

 

Section 2700.425  Automatic Escalation of Deferred Compensation Rate for Auto-Enrolled Participants

 

a)         All Auto-Enrolled Participants who have been enrolled in the Plan for greater than 180 days will have their Deferred Compensation rate automatically increased by 1% annually. (See Section 24-105.2 of the Illinois Pension Code.)

 

b)         The automatic annual increases will go into effect beginning with the first pay period that begins on or after January 1 of each year or as soon as administratively practicable thereafter.

 

c)         Automatic annual increases will continue until:

 

1)         The Participant is no longer an Auto-Enrolled Participant; or

 

2)         The Participant's deferral rate reaches 10% of Compensation or is otherwise limited by the Plan, including Section 2700.420 and Section 2700.430.

 

d)         Auto-Enrolled Participants may, at any time, opt out of the next scheduled automatic annual increase and all future automatic increases by making an affirmative deferral election, including an election to cease contributions. Affirmative deferral elections will be processed in accordance with Section 2700.410.

 

(Source:  Added at 47 Ill. Reg. 12412, effective August 4, 2023)

 

Section 2700.430  Basic Annual Limitation

 

The maximum amount of the Annual Deferral under the Plan for any calendar year shall not exceed the lesser of the Applicable Dollar Amount or the Participant's Includible Compensation for the calendar year.  The Applicable Dollar Amount in a calendar year is adjusted for cost-of-living, to the extent provided under section 415(d) of the Code.

 

(Source:  Amended at 46 Ill. Reg. 15777, effective August 31, 2022)

 

Section 2700.435  Age 50 Catch-up Annual Deferral Contributions

 

A Participant who has deferred the maximum allowed by Section 2700.430 may defer an additional amount for the calendar year in which their 50^th birthday occurs and all calendar years thereafter, subject to the limitation that total deferrals not exceed 100% of the Employee's Includible Compensation.  This additional deferral amount shall be no more than the amount prescribed by Code section 414(v) for the calendar year, and shall be in accordance with the limitations on the amount, as adjusted from time to time by the Secretary of the Treasury pursuant to Code sections 414(v) and 457(b), or any other amount as amended or set forth by the Code.  An Employee who is using the Special Catch-up provision of Section 2700.440 is not eligible for this catch-up deferral.

 

(Source:  Amended at 46 Ill. Reg. 15777, effective August 31, 2022)

 

Section 2700.440  Special Section 457 Catch-up Limitation

 

a)         If the applicable year is one of a Participant's last 3 calendar years ending before the year in which the Participant attains Normal Retirement Age, and the amount determined under this Section exceeds the amount computed under Sections 2700.430 and 2700.435 of this Part, then the Annual Deferral limit in the Plan shall be the lesser of:

 

1)         An annual amount equal to 2 times the Applicable Dollar Amount for the applicable year as provided for in Section 2700.430 of this Part; or

 

2)         The sum of:

 

A)        An amount equal to the aggregate limit, as defined in Section 2700.430 of this Part, for the current year plus each prior calendar year beginning after December 31, 2001 during which the Participant was an Employee under the Plan, minus the aggregate amount of Compensation that the Participant deferred under the Plan after December 31, 2001, plus

 

B)        An amount equal to the aggregate limit referred to in section 457(b)(2) of the Code for each prior calendar year beginning after December 31, 1978 and before January 1, 2002 during which the Participant was an Employee (determined without regard to Section 2700.435 and this Section) minus the aggregate contributions to pre-2002 coordination plans for those years. 

 

b)         In no event can the deferred amount be more than the Participant's Compensation for the applicable years.

 

c)         If the Participant is or has been a participant in one or more other eligible plans within the meaning of section 457(b) of the Code, then this Plan and all other eligible 457(b) plans shall be considered as one plan for purposes of applying foregoing limitations of this Section.  For this purpose, the Department shall take into account any other eligible plan for which the Department receives, from the Participant, sufficient information concerning his or her participation in the other plan.

 

d)         In applying this Section, a year shall be taken into account only if the Participant was eligible to participate in the Plan during all or a portion of the year and Compensation deferred, if any, under the Plan during the year was subject to the basic annual limitation described in Section 2700.430 of this Part or any other plan ceiling required by section 457(b) of the Code.

 

e)         For purposes of subsection (a)(2)(B), "contributions to pre-2002 coordination plan" means any employer contribution, salary reduction or elective contribution under any other eligible Code section 457(b) plan, or a salary reduction or elective contribution under any Code section 401(k) qualified cash or deferred arrangement, Code section 402(h)(1)(B) simplified employee pension deferred arrangement, Code section 403(b) annuity contract, and Code section 408(p) simple retirement account, or under any plan for which a deduction is allowed because of a contribution to an organization described in section 501(c)(18) of the Code, including plans, arrangements or accounts maintained by the Employer or any employer for whom the Participant performed services.  However, the contributions for any calendar year are only taken into account for purposes of subsection (a)(2)(B) of this Section to the extent that the total of the contributions does not exceed the aggregate limit referred to in section 457(b)(2) of the Code for that year.

 

f)         If the Annual Deferral on behalf of a Participant for any calendar year exceeds the limitations described in subsection (a), or the Annual Deferral on behalf of a Participant for any calendar year exceeds the limitations described in subsection (a) when combined with other amounts deferred by the Participant under another eligible deferred compensation plan under section 457(b) of the Code, for which the Participant provides information that is accepted by the Department, then the Annual Deferral, to the extent in excess of the applicable limitation (adjusted for any income or loss in value, if any, allocable to the investment), shall be distributed to the Participant.  The Participant shall be responsible for the proper tax reporting for any contributions in excess of the maximum deferral limitations set forth in Sections 2700.430, 2700.435 and 2700.440.

 

g)         An Employee whose employment is interrupted by qualified military service under Code section 414(u) or who is on a leave of absence for qualified military service under Code section 414(u) may elect to make additional Annual Deferrals upon resumption of employment with the State equal to the maximum Annual Deferrals that the Employee could have elected during that period if the Employee's employment with the State had continued (at the same level of Compensation) without the interruption or leave, reduced by the Annual Deferrals, if any, actually made for the Employee during the period of the interruption or leave.  This right applies for 5 years following the resumption of employment (or, if sooner, for a period equal to 3 times the period of the interruption or leave).

 

h)         If a Participant is eligible both for the Age 50 Catch-Up in Section 2700.435 and the Special Section 457 Catch-Up Limitation in Section 2700.440 in a calendar year, the rule that allows for the greater catch-up contribution applies.

 

(Source:  Amended at 33 Ill. Reg. 13451, effective September 14, 2009)

 

Section 2700.450  Revocation of Deferral

 

a)         Any Participant may revoke their election to have Compensation deferred.

 

b)         Following notice of revocation, the Participant's full Compensation shall be restored as soon as administratively possible.

 

c)         Revocation shall not cause distribution of the Participant's Account.

 

(Source:  Amended at 46 Ill. Reg. 15777, effective August 31, 2022)

SUBPART E: ESTABLISHMENT OF RETIREMENT AGE

 

Section 2700.500  Normal Retirement Age

 

For the purposes of this Plan, Normal Retirement Age means age 70½ unless the Participant has elected an alternative Normal Retirement Age.

 

Section 2700.510  Alternative Normal Retirement Age

 

a)         A Participant may elect an alternative Normal Retirement Age.  Such an election shall be in writing and shall be submitted to the Department.

 

b)         A Participant's alternative Normal Retirement Age shall not be earlier than the earliest date that the Participant will become eligible to retire and receive unreduced retirement benefits under one of the following retirement systems of which the Employee is a member:

 

1)         General Assembly Retirement System;

 

2)         State Employees' Retirement System of Illinois;

 

3)         State Universities Retirement System;

 

4)         Teachers' Retirement System of the State of Illinois; or

 

5)         Judges Retirement System of Illinois.

 

c)         If the Participant is not eligible to receive benefits under a basic retirement plan maintained by the State, the Participant's alternative Normal Retirement Age may not be earlier than the attainment of age 50.

 

d)         The alternative Normal Retirement Age may not be later than the date the Participant attains the age of 70½.

 

(Source:  Amended at 39 Ill. Reg. 4506, effective March 16, 2015)

SUBPART F: PARTICIPANT'S ACCOUNTS, INVESTMENTS AND STATEMENTS

 

Section 2700.600  Deferred Compensation Accounts

 

a)         The State of Illinois shall establish a Deferred Compensation Account for each Participant that shall be the basis for any distributions payable to the Participant under Section 2700.730.

 

b)         Each Participant's Deferred Compensation Account shall be credited with the amount of any Compensation deferred and shall be further credited or debited, as applicable, with:

 

1)         any increase or decrease resulting from investments made by the State pursuant to Section 2700.670;

 

2)         any applicable expenses incurred by the State in maintaining and administering the Plan;

 

3)         any debits for the amount of any distribution;

 

4)         any credit for the initial value on the effective date of the Plan of any bookkeeping account maintained under the Prior Plans; and

 

5)         any adjustment resulting from amounts loaned, repaid or defaulted in respect of a Loan under Section 2700.770.

 

(Source:  Amended at 36 Ill. Reg. 17518, effective January 1, 2013)

 

Section 2700.610  Allocation of Investment Earnings or Losses

 

a)         To the extent that Investment Options are established by the Board, Deferred Compensation Accounts shall be allocated among the Investment Options according to the investment elections in effect on behalf of the Participants.  Earnings and losses of each Investment Option shall be based on the actual investment experience of the Investment Option.

 

b)         Earnings and losses shall be measured from the Valuation Date coincident with or immediately preceding the date on which any Deferred Compensation is invested in any Investment Option to the Valuation Date coincident with or immediately preceding the date any Deferred Compensation is withdrawn from any Investment Option.

 

c)         The amount of earnings or losses allocated to each Deferred Compensation Account shall reflect the proportion a Participant's Deferred Compensation Account in relation to the other Deferred Compensation Accounts having an interest in that Option.

 

(Source:  Amended at 33 Ill. Reg. 13451, effective September 14, 2009)

 

Section 2700.620  Investment Option Valuation

 

a)         Any Investment Option under this Plan shall be valued at fair market value as of each Valuation Date.

 

b)         Any withdrawals or distributions made under this Plan shall be made in cash by electronic transfer, or as authorized by the State.

 

(Source:  Amended at 33 Ill. Reg. 13451, effective September 14, 2009)

 

Section 2700.630  Administrative Costs

 

a)         It is the intent of the Plan that it shall not be implemented or administered so as to be an expense to the State of Illinois, except for the State's obligation to pay the Deferred Compensation Accounts as provided in the Plan.  Therefore, any expenses of maintaining and administering the Plan shall be borne by the Participants.  Cost shall include, but not be limited to, the costs of:

 

1)         making investments, exchanges or distributions if any;

 

2)         collecting the Deferred Compensation;

 

3)         providing information to Participants, Employees and other agencies of the State; and

 

4)         administering the Plan Loan feature under Section 2700.770.

 

b)         The method of allocating, calculating and deducting any expenses shall be determined by the Board.

 

c)         To defray certain of the expenses incurred in administering the Plan, an asset charge at an annual rate not to exceed a cap of 1% shall be levied directly against the Account of each Participant in the Plan.  This charge shall be assessed to offset certain costs incurred by the State in administering the Plan.  Any asset charge shall be based on these costs, but in no case may the asset charge provided for in this subsection (c) exceed the cap of 1%.

 

d)         A Loan origination fee may be levied against the Account of each Participant who applies for and receives a Loan from his or her Account Balance as provided in Section 2700.770.

 

e)         In maintaining and administering the Plan, fees and expenses will also be charged in respect of the Plan's Investment Options and be reflected in the returns received from each Investment Option.

 

(Source:  Amended at 36 Ill. Reg. 17518, effective January 1, 2013)

 

Section 2700.640  Method of Making Investment Requests

 

a)         A Participant shall, at the time of enrollment, make an investment request under the Plan, unless the Participant is automatically enrolled in the Plan.

 

b)         Once made, an investment request shall continue for any deferments unless later changed by the Participant.

 

c)         A Participant may change investment requests for future amounts of Deferred Compensation an unlimited number of times.

 

d)         A change in investment request shall be made to the Plan's Recordkeeper by telephone notice or use of internet on-line access programs. To the extent allowed by law, the Recordkeeper shall make a Participant financially whole in situations in which a Participant's transaction request was received timely and in good order, but, due to an error or omission by the Recordkeeper, was not executed in compliance with the Participant's instructions.

 

e)         A Participant may change an investment request governing amounts previously deferred.  However, after June 1, 1994, amounts previously deferred into the stable value option shall not be exchanged directly or indirectly into a money market fund.  Any exchange from the stable value option must first be exchanged into one of the other investment options for a period of 90 days.

 

(Source:  Amended at 46 Ill. Reg. 15777, effective August 31, 2022)

 

Section 2700.650  Participant Statements

 

a)         Each Participant shall be provided quarterly with an accounting of his or her Deferred Compensation Account, including, but not limited to, the amount deferred and any amounts credited or debited up to the quarter end and a separate accounting showing amounts credited or debited up to the quarter end for a Participant's outstanding Loan under Section 2700.700.

 

b)         The accounting shall be made not later than 60 days after all deferrals for the quarter have been invested.

 

c)         Participants are responsible for notifying the Department in writing of any investment or other error within 14 days after the receipt of any statement.

 

d)         The liability of the Plan to the Participants for administrative errors shall not exceed the amount necessary to correct the error.  Errors under $5.00 will not be corrected.

 

(Source:  Amended at 36 Ill. Reg. 17518, effective January 1, 2013)

 

Section 2700.660  Custodial Account

 

a)         Notwithstanding any contrary provision of the Plan, in accordance with section 457(g) of the Code, all amounts of Compensation deferred pursuant to the Plan, all property and rights purchased with these amounts, all Loans made and repaid with these amounts, and all income attributable to these amounts, property, or rights shall be held in one or more Custodial Accounts  for the exclusive benefit of Participants and Beneficiaries under the Plan.  For purposes of this subsection, the Custodian of any Custodial Account created pursuant to the Plan must be a bank, as described in section 408(n) of the Internal Revenue Code, or a person who meets the non-bank trustee requirements in accordance with the regulations under section 408(a)(2) of the Code relating to the use of non-bank trustees.  All amounts of Compensation deferred under the Plan and all Loan repayments received shall be transferred to a Custodial Account described in section 401(f) of the Code within a period that is not longer than is reasonable for the proper administration of the accounts of Participants. The Recordkeeper shall act as agent on behalf of the Plan to take custody of Participant Loans.

 

b)         The Participant and his or her Beneficiary shall not have any property interest whatsoever in any specific asset of the State of Illinois on account of his or her election to defer any Compensation under this Plan.

 

(Source:  Amended at 36 Ill. Reg. 17518, effective January 1, 2013)

 

Section 2700.670  Investment Options

 

a)         The Board shall offer different types of Investment Options to meet various Participant investment objectives. Investment Options may consist of collective trust funds, other pooled investment vehicles, and/or mutual funds whose eligible investments, investment guidelines, and investment philosophies are governed by a prospectus or similar disclosure. Investment Options may also include separately managed accounts that are governed by an investment management agreement that would include investment guidelines. Additionally, the Board may create Investment Options consisting of the investments described in this subsection (a).

 

b)         The Board will offer a series of target date funds that allow Participants to choose a single fund that is based on their expected target retirement date.

 

c)         The Board will designate the target date funds as the default Investment Option for any Participant who fails to make an investment choice for their contributions.

 

d)         The Board will establish at least one investment option within each of the following broad asset classes for the investment of Deferred Compensation:

 

1)         Capital Preservation (Money Market or Stable Value).

 

2)         Fixed Income (Bonds).

 

3)         US Equity (Stocks).

 

4)         International Equity (Stocks).

 

e)         The Board may also establish additional Investment Options at its own discretion to serve the needs of the Plan's Participants.

 

f)         The Board is specifically authorized to utilize outside investment managers to the extent deemed appropriate by the Board.

 

g)         The Board also has the authority to eliminate Investment Options offered by the Plan, provided that, in such event, Participants will be given no less than 30 days' notice of the elimination and effective date. The Board will provide Participants an opportunity to direct their balances in the to-be terminated Investment Option to other Investment Options prior to the termination effective date. Balances not directed by Participants will be transferred or "mapped" to the Plans' Investment Options the Board deems appropriate.

 

h)         The Board is authorized to adopt a custom naming convention (also known as "white labeling") that is specific to each Investment Option in the Plan, which is typically intended to more clearly represent the type of investment offered.

 

(Source:  Amended at 46 Ill. Reg. 15777, effective August 31, 2022)

 

Section 2700.680  In-Plan Conversions and Rollovers to the Plan

 

a)         A Participant who is entitled to receive an eligible rollover distribution from another eligible retirement plan may request to have all or a portion of the eligible rollover distribution paid to the Plan.

 

b)         The Department may require documentation from the distributing plan as it deems necessary to effectuate the rollover in accordance with Code section 402 and to confirm that the plan is an eligible retirement plan within the meaning of Code section 402(c)(8)(B).

 

c)         For purposes of this Section, an eligible rollover distribution means any distribution of all or any portion of a Participant's benefit under another eligible retirement plan, except that an eligible rollover distribution does not include:

 

1)         any installment payment for a period of 10 years or more;

 

2)         any distribution made as a result of an Unforeseeable Emergency or other distribution that is made to a Participant;

 

3)         any amount constituting a security interest for an outstanding Loan under the eligible retirement plan; or

 

4)         for any other distribution, the portion, if any, of that distribution that is a required minimum distribution under Code section 401(a)(9).  Code section 401(a)(9) outlines required distributions and the manner in which those distributions must be made.

 

d)         In addition, an eligible retirement plan means an individual retirement account described in Code section 408(b), a qualified trust described in Code section 401(a), an annuity plan described in Code section 403(a) or 403(b), or an eligible governmental plan described in Code section 457(b) that accepts the eligible rollover distribution.

 

e)         The Plan will not accept an eligible rollover distribution that includes an outstanding Loan as an asset from an eligible retirement plan.  

 

f)         The Recordkeeper, at the direction of the Department, shall establish and maintain for the Participant a separate account for any eligible rollover distribution paid to the Plan from any eligible retirement plan that is not an eligible governmental plan under Code section 457(b).

 

g)         In addition, the Recordkeeper, at the direction of the Department, shall establish and maintain for the Participant a separate account for any eligible rollover distribution paid to the Plan from any eligible retirement plan that is an eligible governmental plan under Code section 457(b).

 

h)         Notwithstanding any provision of this Part to the contrary, the Plan may accept a rollover contribution that consists of designated Roth Contributions from an applicable retirement plan described in Code section 402A(e)(1), but only to the extent the rollover is permitted under Code section 402(c).  Additionally, a direct rollover of a distribution from a Roth Contributions Account may only be made to another Roth contribution account under an applicable retirement plan described in Code section 402A(e)(1) or to a Roth IRA described in Code section 408A, and only to the extent the rollover is permitted under Code section 402(c).

 

i)          The Plan may allow in-plan Roth conversions.  To the extent permitted by applicable law, Participants may, at their discretion, elect to convert all or a portion of their existing Pre-Tax Contributions to Roth Contributions at any time, and this conversion will not be considered a distribution under the Plan.

 

j)          The Plan may allow indirect rollovers, in which an Employee or a former Employee with an Account Balance contributes amounts to the Plan that were previously directly paid from an eligible retirement plan providing that those assets were withdrawn within the last 60 days (unless a waiver has been granted by the IRS).

 

(Source:  Amended at 47 Ill. Reg. 12412, effective August 4, 2023)

 

Section 2700.690  Plan-to Plan Transfers to the Plan

 

a)         Participants who participate in another eligible governmental plan under section 457(b) of the Code may transfer assets to the Plan as provided in this Section.  A transfer is permitted only if the other plan provides for the direct transfer of a Participant's interest in the other plan to the Plan.

 

b)         The transfer is permitted only in the form of cash or other similar property deemed acceptable to the Department.

 

c)         The Department may require documentation from the other plan as it deems necessary to effectuate the transfer in accordance with section 457(e)(10) of the Code and 26 CFR 1.457-10(b) (2012) and to confirm that the other plan is an eligible governmental plan as defined in 26 CFR 1.457-2(f) (2012).

 

d)         The Plan will not accept a transfer from an eligible governmental plan that includes an outstanding loan as an asset.   

 

e)         The amount transferred shall be credited to the Participant's Account Balance and shall be held, accounted for, administered and otherwise treated in the same manner as an Annual Deferral by the Participant under the Plan, except that the transferred amount shall not be considered an Annual Deferral under the Plan in determining the maximum deferral under Section 2700.430 of this Part.

 

(Source:  Amended at 36 Ill. Reg. 17518, effective January 1, 2013)

SUBPART G: DISTRIBUTIONS

 

Section 2700.700  Distribution Events

 

a)         Distributions under this Plan shall be made in accordance with Code section 401(a)(9) (including, but not limited to, the Plan provisions described in Sections 2700.315 and 2700.740) and Treasury Regulations issued under section 401(a)(9), including the minimum distribution incidental benefit requirement of Code section 401(a)(9)(G) and Treasury Regulations 1.401(a)(9)-2 through 1.401(a)(9)-9 (26 CFR 1.401(a)(9)-2 through (a)(9)-9 (2012)). However, these provisions of the Code and Treasury Regulations shall override the other distribution provisions of the Plan only to the extent that the other Plan provisions provide for a distribution that is less rapid than is required under the provisions of the Code and the Treasury Regulations.

 

b)         In accordance with the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act; 15 U.S.C. 116), the Plan will not make required minimum distributions to Plan Participants who otherwise would be required to take a required minimum distribution in calendar year 2020. 2020 required minimum distributions requested prior to the CARES Act passage may be recontributed to the Plan in accordance with IRS guidance.

 

c)         In accordance with the CARES Act, the Plan will permit Plan Participants who are qualified individuals (as provided in section 2202 of the CARES Act) to request Coronavirus-Related Distributions up to an aggregate limit of $100,000 from May 29, 2020 through December 28, 2020. Plan Participants may repay all or part of the amount of a Coronavirus-Related Distribution, provided the repayment is made within 3 years after the date that the distribution was received. If repaid, the distribution will be treated as though it were repaid in a direct trustee-to-trustee transfer.

 

d)         A Participant's Deferred Compensation Account may begin to be distributed 30 days after the date of one of the following events:

 

1)         Severance from Employment;

 

2)         Death; or

 

3)         Delayed Distribution Date.

 

e)         A Participant’s Deferred Compensation Account may begin to be distributed in the calendar year in which the Participant attains age 59½.

 

f)         A Participant's Deferred Compensation Account may begin to be distributed as soon as possible but not later than 30 days after determination of an Unforeseeable Emergency.

 

g)         A Participant, with $5,000 or less in the Participant's Deferred Compensation Account, may elect to cash out the Account in compliance with conditions specified in Section 2700.735.

 

h)         No distributions shall be made to a Participant who is employed as an independent contractor before a date that is at least 12 months after the day on which the Participant's employment contract expires.  Should the independent contractor be re-employed by the State as either an Employee or independent contractor during the 12-month waiting period, no distribution shall be started on the projected distribution date. If the contractor has attained age 70½ at the time the contract is terminated, the 12-month waiting period is waived.

 

i)          Participants are responsible for notifying the Department (e.g., email, phone call) of their Severance from Employment.

 

j)          Beneficiaries are responsible for notifying the Department (e.g., email, phone call) or the Recordkeeper (e.g., website, phone call) of the death of the Participant and supplying the Department with a certified copy of the Death Certificate.

 

k)         A Participant who does not receive the initial distribution until the calendar year following the year in which the Participant reaches age 72 or separates, if they work past age 72, shall receive at least 2 taxable distributions in the same year.

 

l)          If a Participant has a separate account attributable to rollover contributions to the Plan, the Participant may at any time elect to receive a distribution of all or any portion of the amount held in the rollover account.

 

m)        An alternate payee, pursuant to the terms of a qualified domestic relations order, may at any time elect to receive a distribution of all or any portion of the amount held and maintained on behalf of the alternate payee upon the proper execution and designation under the qualified domestic relations order.  An alternate payee is not eligible to apply for a Loan pursuant to Section 2700.770.   

 

n)         If a Participant has an outstanding Loan, the Participant's or Beneficiary's accrued benefit shall be subject to offset or other adjustment upon distribution, in satisfaction of any outstanding Loan balance. 

 

o)         Notwithstanding any provision in this Part to the contrary, for a Participant's Roth Contributions only, a distribution shall not be a "qualified distribution" unless it meets the requirements of Code section 402A(d).

 

(Source:  Amended at 47 Ill. Reg. 12412, effective August 4, 2023)

 

Section 2700.710  Beneficiary Election of Method of Distribution

 

a)         If the Participant dies prior to January 1, 2022, before the account has been exhausted, the remaining account values shall be paid to the Designated Beneficiary or Non-Designated Beneficiary.  For purposes of this Section, a "Non-Designated Beneficiary" is a Beneficiary who is not a natural person, such as a trust, estate or other legal entity.  The Beneficiary shall have the right to elect the time and method of distribution, subject to the limitations set forth by the Plan, notwithstanding Section 2700.730(b), in the following manner:

 

1)         If the Participant dies before the required beginning distribution date under subsection 2700.710(j), payments to:

 

A)        a surviving spouse may be delayed until December 31 of the year in which the Participant would have attained age 72 (or 70½ if the Participant was born before July 1, 1949).  The entire account must be withdrawn over a period not extending beyond the single life expectancy of the surviving spouse.  If the surviving spouse, who is the Designated Beneficiary, dies prior to the required beginning date, the surviving spouse's designated Beneficiary shall receive distribution in full by the end of the fifth calendar year that contains the fifth anniversary of the surviving spouse's death or over a period of time designated by the single life expectancy of the surviving spouse in the year following the year of death and reduced by one for each subsequent year of distribution.  

 

B)        a non-spousal Beneficiary must be distributed in full by the end of the fifth calendar year that contains the fifth anniversary of the Participant's death, or distributed in full over a period of time designated by the single life expectancy of the Beneficiary in the year following year of death and reduced by one for each subsequent year of distribution.

 

C)        a Non-Designated Beneficiary must be distributed in full by the end of the calendar year that contains the fifth anniversary of the Participant's death.

 

2)         If the Participant dies on or after the required beginning date:

 

A)        The Beneficiary may elect to receive distribution for the period of time up to, but not longer than, the Participant's life expectancy in the year of death, determined by the Single Life Expectancy Table and reduced by one each subsequent year, or the Beneficiary's recalculated single life expectancy as of the year following the year of death of the Participant.  A non-spousal Beneficiary must have that age reduced by one for each subsequent year of distribution.

 

B)        A surviving spouse may elect distributions over the surviving spouse's own single life expectancy.  In the case of the death of the surviving spouse, this period of time may be used to continue payments to the spouse's declared Beneficiaries.

 

C)        A Non-Designated Beneficiary must be distributed in full by the end of the calendar year that contains the fifth anniversary of the Participant's death.

 

3)         If the account holder is a Designated Beneficiary, distributions to a successor Beneficiary may continue at least as quickly as, but no longer than, the single life expectancy of the deceased designated Beneficiary reduced by one for each subsequent year of distribution.

 

b)         If the Participant dies on or after January 1, 2022, before the account has been exhausted, the remaining account values shall be paid to the Eligible Designated Beneficiary, Designated Beneficiary, or Non-Designated Beneficiary.  The Beneficiary shall have the right to elect the time and method of distribution, subject to the limitations set forth by the Plan, notwithstanding Section 2700.730(b), in the following manner:

 

1)         An Eligible Designated Beneficiary that is a surviving spouse may elect to receive distributions over the period of time up to, but not longer than, the Beneficiary single life expectancy, or in full by the end of the calendar year that contains the tenth anniversary of the Participant's death.  If no election is made by September 30 of the year following the year of the Participant’s death or year the Participant would have turned age 72 (or 70½ if the Participant was born before July 1, 1949), whichever is later, then the account will be distributed in full by the end of the calendar year that contains the tenth anniversary of the Participant's death.

 

2)         An Eligible Designated Beneficiary that is not a surviving spouse may elect to receive distributions over the period of time up to, but not longer than, the Beneficiary’s single life expectancy, or in full by the end of the calendar year that contains the tenth anniversary of the Participant's death.

 

A)        If no election is made by September 30 of the year following the year of the Participant’s death or year the Participant would have turned age 72 (or 70½ if the Participant was born before July 1, 1949), whichever is later, then the account will be distributed in full by the end of the calendar year that contains the tenth anniversary of the Participant's death.

 

B)        A minor child shall cease to be an Eligible Designated Beneficiary as of the date the individual reaches majority and any remaining account value must be distributed within 10 years after that date.

 

3)         Any other Designated Beneficiary must be distributed in full by the end of the calendar year that contains the tenth anniversary of the Participant's death.

 

4)         A Non-Designated Beneficiary must be distributed in full by the end of the calendar year that contains the fifth anniversary of the Participant's death.

 

5)         In the case that a Designated Beneficiary dies before the account has been entirely distributed, rules for distributions to a successor Beneficiary are as follows:

 

A)        Upon the death of a Designated Beneficiary, the account shall be entirely distributed to a successor Beneficiary by the date the Designated Beneficiary would have been required to receive a complete distribution.

 

B)        Upon the death of an Eligible Designated Beneficiary who is not a surviving spouse, the account shall be distributed to a successor Beneficiary within 10 years after the death of the Eligible Designated Beneficiary.

 

C)        Upon the death of an Eligible Designated Beneficiary who is a surviving spouse:

 

i)          If the surviving spouse dies before distributions have begun, then the surviving spouse becomes the Participant for purposes of this Section and for the purposes of distributions to a successor Beneficiary.

 

ii)         If the surviving spouse dies after distributions have begun but before the account is entirely distributed, the remaining account value shall be entirely distributed to a successor Beneficiary within 10 years after the death of the Eligible Designated Beneficiary.

 

(Source:  Amended at 47 Ill. Reg. 12412, effective August 4, 2023)

 

Section 2700.720  Election of Delayed Distribution Date (Repealed)

 

(Source:  Repealed at 30 Ill. Reg. 8408, effective April 21, 2006)

 

Section 2700.730  Election of Method of Distribution

 

a)         In an election to commence benefits as provided for under Section 2700.700, a Participant entitled to a distribution of benefits may elect to receive payment in any of the following forms of distribution:

 

1)         a lump sum payment of the total Account Balance; or

 

2)         annual installment payments through the year of the Participant's death, the amount payable each year equal to a fraction of the Account Balance equal to 1 divided by the distribution period set forth in the Uniform Lifetime Table at 26 CFR 1.401(a)(9)-9, A-2 (2008) for the Participant's age on the Participant's birthday for that year.

 

A)        If the Participant's age is less than age 70, the distribution period is 27.4 plus the number of years that the Participant's age is less than age 70.

 

B)        At the Participant's election, this annual payment can be made in monthly, quarterly or semi-annual installments.

 

C)        The Account Balance for this calculation (other than the final installment payment) is the Account Balance as of the end of the year prior to the year for which the distribution is being calculated.

 

D)        For any year, the Participant can elect distribution of a greater amount (not to exceed the amount of the remaining Account Balance) rather than the amount calculated under subsection (a)(2)(C).

 

b)         A Participant or the surviving spouse of a Participant (or a Participant's former spouse who is an alternate payee under a domestic relations order, as defined in section 414(p) of the Code) who is entitled to an eligible rollover distribution may elect, at the time and in the manner prescribed under the Plan, to have all or any portion of the distribution paid directly to an eligible retirement plan specified by the Participant in a direct rollover.  An eligible retirement plan means an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, a qualified trust described in section 401(a) of the Code, an annuity plan described in section 403(a) or 403 (b) of the Code, or an eligible governmental plan described in section 457(b) of the Code, that accepts the eligible rollover distribution.

 

c)         For purposes of this Section, an eligible rollover distribution means any distribution of all or any portion of a Participant's Account Balance, except that an eligible rollover distribution does not include:

 

1)         any installment payment under subsection (a) for a period of 10 years or more;

 

2)         any distribution made under Section 2700.740 as a result of an Unforeseeable Emergency; or

 

3)         the portion, if any, of the distribution that is a required minimum distribution under section 401(a)(9) of the Code other than those distributions described in subsections (c)(1) and (c)(2).  

 

d)         In no event shall any distribution under this Section begin later than the latter of:

 

1)         April 1 of the year following the calendar year in which the Participant attains age 70½; or

 

2)         April 1 of the year following the year in which the Participant retires or otherwise has a Severance from Employment.

 

e)         If distributions commence in the calendar year following the latter of the calendar year in which the Participant attains age 70½ or the calendar year in which the Severance from Employment occurs, the distribution on the date that distribution commences must be equal to the annual installment payment for the year that the Participant has a Severance from Employment determined under subsection (a)(2), and an amount equal to the annual installment payment for the year after Severance from Employment determined under subsection (a)(2) must also be paid before the end of the calendar year of commencement.

 

f)         Any election made under this Section may be revoked at any time.

 

g)         Any portion of the Deferred Compensation Account that has not been distributed shall continue to be credited and/or debited according to the provisions of Sections 2700.600 and 2700.610.

 

(Source:  Amended at 33 Ill. Reg. 13451, effective September 14, 2009)

 

Section 2700.735  Distribution for Certain Balances of $5, 000 or Less

 

At the direction of the Participant, a Participant's total Account Balance shall be paid in a lump sum on the next Valuation Date following the direction if:

 

a)         the total Account Balance does not exceed $5,000;

 

b)         the Participant has not previously received a distribution of the total amount payable to the Participant under this Section; and

 

c)         no Annual Deferral has been made with respect to the Participant during the 2-year period ending immediately before the date of the distribution.

                         

(Source:  Amended at 30 Ill. Reg. 8408, effective April 21, 2006)

 

Section 2700.740  Unforeseeable Emergency

 

a)         A distribution of all or a portion of a Participant's Deferred Compensation Account or a change in method of distribution to a Participant shall be permitted in the event the Participant experiences an Unforeseeable Emergency.

 

b)         Distributions shall not be made to the extent that the hardship is or may be relieved:

 

1)         through reimbursement or compensation by insurance or otherwise;

 

2)         by liquidation of the Participant's assets to the extent the liquidation of assets would not itself cause severe financial hardship;

 

3)         by cessation of deferrals under the Plan; or

 

4)         through receipt of a Loan under Section 2700.770.

 

c)         A distribution pursuant to this Section shall not be permitted unless the Participant has first exhausted the amount otherwise available for a Loan under Section 2700.770, except to the extent the Participant can demonstrate in its hardship distribution application that receipt of a Loan would itself cause severe financial hardship.

 

d)         For the purposes of this Plan, a Beneficiary whose interest has "vested" in accordance with Section 2700.415 shall have all rights of a Participant to request a distribution in the event of an Unforeseeable Emergency.

 

e)         A Participant desiring a distribution by reason of a serious Unforeseeable Emergency must apply to the Recordkeeper and demonstrate that:

 

1)         the circumstances being experienced were not under the Participant's control;

 

2)         the circumstances constitute a real emergency that is likely to cause the Participant great financial hardship;

 

3)         the Unforeseeable Emergency that is the subject of the request occurred no more than 24 months prior to the date of the request;

 

4)         the amount of the need cannot be reasonably relieved:

 

A)        through reimbursement or compensation by insurance or otherwise;

 

B)        by liquidation of assets (including those of the Participant's spouse and minor children), to the extent the liquidation would not itself cause an immediate and heavy financial need;

 

C)        by stopping elective contributions to the Plan;

 

D)        following receipt of a Loan under Section 2700.770; or

 

E)        by taking withdrawals from the plans maintained by the employer and any other company, or by borrowing from commercial resources on reasonable commercial terms; and

 

5)         an Unforeseeable Emergency request form and 457 direct emergency withdrawal worksheet have been completed and submitted to the Recordkeeper, along with all documentation possessed by the Participant that supports the basis of the request.

 

f)         The Recordkeeper shall have the authority to require medical or other evidence it may need to determine the necessity for Participant's withdrawal request.  In the event this information is not provided, the case shall be considered closed 60 days after the date of the request for additional information.

 

g)         The Recordkeeper shall reach its decision to process or reject the financial hardship withdrawal request, in accordance with Section 2700.315(f), within 30 days following receipt of the completed application and necessary information required by the application.

 

h)         In the event the basis for the hardship does not fall into the guidelines established by Section 2700.315(f), the Recordkeeper shall forward all relevant information to the Hardship Committee for consideration and a final decision.

 

i)          The Hardship Committee may request additional information from the Participant in order to make its decision on applications processed through either subsection (i) or (j).  The Hardship Committee shall reach its decision within 30 days after receipt of the application and information necessary to reach a final determination.

 

j)          If a Participant is not satisfied with the decision of the Hardship Committee on an application for an Unforeseeable Emergency distribution or change in distribution, the Participant may appeal in writing to the Board within 20 days after the mailing date of the Hardship Committee's decision.

 

k)         The Board, or its duly appointed representative, shall, within 60 days after receipt of the appeal, conduct an interview with the Participant and review evidence presented by the Participant.

 

l)          The Board or the Executive Committee of the Board shall then render a final decision within 30 days after the hearing that shall be binding on all parties.

 

m)        If an application for an Unforeseeable Emergency distribution is approved, the distribution shall be limited to an amount sufficient only to meet the emergency, which amount shall not include any security interest for an outstanding Loan under Section 2700.770 or exceed the amount of the Participant's Deferred Compensation Account as of the Valuation Date next preceding or coincident with the withdrawal.

 

n)         The allowed distribution shall be payable in a method determined by the Recordkeeper and shall commence as soon as possible, but not later than 30 days after notice to the Participant and the Department of approval of the request.

 

(Source:  Amended at 47 Ill. Reg. 12412, effective August 4, 2023)

 

Section 2700.745  Plan-to-Plan Transfers from the Plan

 

a)          Participants and Beneficiaries may elect to have all or any portion of their Account Balance transferred to another eligible governmental plan within the meaning of section 457(b) of the Code and 26 CFR 1.457-2(f) (2012).

 

b)          A transfer is permitted under this Section only if:

 

1)         the Participant has had a Severance from Employment with the State and is an employee of the entity that maintains the other eligible governmental plan; and

 

2)         the other eligible governmental plan provides for the acceptance of plan-to-plan transfers with respect to the Participants and Beneficiaries and for each Participant and Beneficiary to have an amount deferred under the other plan immediately after the transfer at least equal to the amount transferred.

 

c)         The Plan shall not permit a plan-to-plan transfer of a Loan or that part of any Account Balance constituting a security interest for an outstanding Loan.

 

d)        Upon the transfer of assets under this Section, the Plan's liability to pay benefits to the Participant or Beneficiary under this Plan shall be discharged to the extent of the amount transferred for the Participant or Beneficiary.

 

e)         The Recordkeeper may require documentation from the receiving plan as it deems appropriate or necessary to comply with this Section or to effectuate the transfer pursuant to 26 CFR 1.457-10(b) (2012). 

 

(Source:  Amended at 36 Ill. Reg. 17518, effective January 1, 2013)

 

Section 2700.750  Permissive Service Credit Transfers

 

a)         If a Participant is also a participant in a tax-qualified defined benefit governmental plan (as defined in section 414(d) of the Code) that provides for the acceptance of plan-to-plan transfers with respect to the Participant, then the Participant may elect to have any portion of the Participant's Account Balance transferred to the defined benefit governmental plan.

 

b)         A transfer under this Section may be made before the Participant has had a Severance from Employment.

 

c)         A transfer may be made under this Section only if the transfer is either for the purchase of permissive service credit (as defined in section 415(n)(3)(A) of the Code) under the receiving defined benefit governmental plan or a repayment to which section 415 of the Code does not apply by reason of section 415(k)(3) of the Code.

 

d)         The amount of the transfer must be an amount equal to the amount of the intended purchase of the permissive service credit.  No partial payment is allowed.                                                                                                         

(Source:  Amended at 30 Ill. Reg. 8408, effective April 21, 2006)

 

Section 2700.760  Leave of Absence

 

a)         Any Participant who is granted a leave of absence by the Employer may continue to participate in this Plan as long as the leave of absence is approved by the Employer.

 

b)         If an approved leave of absence is terminated by the Employer or Employee without the resumption of the employment relationship, and if the Employee has been removed from the payroll for 30 days, the Participant shall be treated as having a Severance of Employment under this Plan, as of the date of termination of the leave, and may elect a distribution method as provided in Section 2700.730 of this Part.

 

(Source:  Amended at 30 Ill. Reg. 8408, effective April 21, 2006)

 

Section 2700.770  Loans

 

a)         Eligible Participants and Nondiscrimination.  A Participant who is an Employee may apply for and receive a Loan from the Participant's Account Balance as provided in this Section.  Loans shall be made available on a reasonably equivalent basis, and Loans shall not be made available to highly compensated Participants as defined by the Internal Revenue Service in an amount greater than the amount made available to other Participants. A Beneficiary may not apply for a Loan from the beneficiary's Account Balance.

 

b)         Interest and Security.  Loans must be adequately secured.  All Loans shall provide a fixed rate of interest of 1% above the prime interest rate as published in the Wall Street Journal on the first business day of the month in which the loan was originated.

 

c)         Participants shall not have more than one Loan outstanding at a time; a Loan must be repaid in full before another Loan can be applied for and received.  A Participant may only apply for and receive another Loan 30 days after the date a previous Loan is repaid in full.

 

d)         Loan Amount.  No Loan shall exceed the value of the vested portion of the Participant's Account Balance.  The amount to be loaned shall be selected by the Participant at the time a Loan application is filed but shall not be for an amount less than $1,000.  The maximum amount of any Loan may not exceed the lesser of $50,000 or 50% of the Participant's vested Account Balance under the Plan on the date the Loan is made.

 

1)         The $50,000 maximum Loan amount must be reduced by the highest outstanding balance of all other loans during the one-year period ending on the day before the Loan is made.

 

2)         Unless it has been repaid by the Participant or offset from the Participant's Account Balance, a Loan that has been deemed distributed to a Participant (including interest accruing on the Loan) is considered as an outstanding Loan.

 

e)         Any amount in an account or accounts established for an alternate payee shall be excluded in determining the amount available for purposes of subsection (d).

 

f)         Loan Term.  A Loan shall, by its terms, require that repayment (principal and interest) be amortized in level payments, not less frequently than quarterly, over a period not extending beyond five years from the date of the Loan. Notwithstanding anything in this Section to the contrary, in accordance with the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act; 15 U.S.C. 116), a Participant who is a qualified individual for the purposes of section 2202 of the CARES Act is permitted to delay Loan repayments due between May 29, 2020 and December 31, 2020; however, interest will accrue on all deferred payments.

 

g)         A Participant may pay off the entire Loan balance its due date by contacting the Recordkeeper and requesting the Loan's payoff amount, which shall include unpaid principal and accrued interest.  Payoff must be made via a single payment.

 

h)         Military Suspension.  Loan repayments may be suspended as permitted under Code section 414(u)(4).

 

i)          Loan Default.  Failure to make Loan repayments in the manner and within the time period provided for in the Loan shall result in a default on the Loan.  If a Participant defaults on a Loan, foreclosure on the note and attachment of security will not occur until the affected Participant experiences a distributable event under the Plan.

 

j)          In the event a Participant dies with an outstanding Loan, the Participant's Loan request shall be void as of the date of death and the proceeds shall not be disbursed, so long as the Recordkeeper is notified of the Participant's death prior to the disbursement of proceeds.

 

k)         The amount of the Loan may not be changed or revoked by the Participant and shall remain in effect until repaid or defaulted.

 

l)          Appeal of Loan Denial.  A Participant that is not approved for a Loan or a Loan amendment may appeal the denial in writing to the Hardship Committee within 30 days after the date of the Loan denial.  The Hardship Committee shall render a final decision, within 30 days after receipt of the appeal, that shall be binding on all parties.  If an appeal for a Loan is approved, the Loan shall be made and repaid in accordance with this Section.

 

m)        Loan Application and Initiation

 

1)         The Recordkeeper will administer Loans in accordance with this Section.

 

2)         A Plan Participant, who is an active Employee, may apply for a Loan from the Plan.  Beneficiaries and alternate payees are not eligible for a Loan.  A Participant may initiate a Loan via telephone, online, or a paper form with the Recordkeeper.  If a Participant meets the Plan requirements for eligibility contained in this Section, and certifies that the Participant has no other outstanding loans across all qualified Employer plans, then the Participant may initiate a Loan.  In order to initiate a Loan, a Participant will be required to provide banking information to allow for ACH Debit and agree to the terms and conditions of the Recordkeeper's ACH Debit set up.

 

3)         Once a Loan is approved by the Recordkeeper, the Participant shall execute a promissory note in the form prescribed by the Recordkeeper.

 

4)         Participants will be permitted to investigate a Loan even if they are not eligible to initiate a Loan.

 

5)         Loans may not be refinanced.

 

6)         A Participant will be charged a loan origination fee when the Loan is processed.  Additionally, a loan maintenance fee will be deducted quarterly from the Participant's account.

 

7)         Loan Repayments:

 

A)        The Loan shall be repaid monthly via ACH Debit in substantially equal installments of principal and accrued interest under a level amortization schedule.  The repayment schedule will be established when the Loan is initiated.

 

B)        The Plan does not permit partial pre-payment or partial advance payment of future Loan payments.

 

C)        The Participant is responsible for notifying the Recordkeeper of any failure of Loan repayments to be initiated or otherwise made in accordance with the terms of the Loan.

 

D)        If a Loan repayment is not successfully debited from the Participant's banking account, the Recordkeeper will notify the Participant and the Participant will be required to take one of the following actions prior to the quarter following the quarter of the missed Loan repayment (the cure period): immediately pay the total amount of any rejected Loan repayments; or pay the entire remaining Loan balance in full.  If all delinquent payments are not received by the end of the cure period, the Loan will be defaulted.

 

E)        The Loan repayment amount shall be invested in accordance with the Participant's current investment election on file with the Recordkeeper.

 

8)         Through the Recordkeeper's website, Participants will have the ability to access and monitor Loan information.

 

(Source:  Amended at 47 Ill. Reg. 12412, effective August 4, 2023)

SUBPART H: MISCELLANEOUS

 

Section 2700.800  Nonassignability

 

a)         The contract entered into between the Employer and a Participant through this Plan and the benefits, proceeds or payments under this Plan cannot be sold, assigned, pledged, commuted, transferred or otherwise conveyed by an Employee, Participant or Beneficiary.  Any attempt to assign or transfer shall not be recognized and shall impose no liability upon the Employer.              

 

b)         Except as otherwise required by law and as provided in Sections 2700.850 and 2700.860 of this Part, any Deferred Compensation monies withheld pursuant to this Plan shall not be subject to attachment, garnishment, or execution, or to transfer by operation of law in the event of bankruptcy or insolvency of the Participant or otherwise.

 

(Source:  Amended at 30 Ill. Reg. 8408, effective April 21, 2006)

 

Section 2700.810  Payments to Minors and Incompetents

 

If the Department is notified that a Participant or Beneficiary entitled to receive any benefit under this Plan is adjudicated by a Court of Law to be mentally incompetent, or that a Beneficiary is a minor at the time when a benefit under this Plan becomes payable to him or her, the Department shall, upon receipt of a Court order, direct the Recordkeeper to authorize payment of the benefit to any other person or institution, including a custodian under any State's Gift to Minors Act, who has been duly appointed as the Participant's or Beneficiary's guardian, or a person or institution who is then maintaining or has custody of the Participant or Beneficiary, or to a Court of Law for distribution pursuant to that Court's order.

 

(Source:  Amended at 33 Ill. Reg. 13451, effective September 14, 2009)

 

Section 2700.820  Missing Persons

 

a)         If the Department is unable to ascertain the whereabouts or identity of any person who is due to receive a benefit under this Plan at the time that benefit is due, the Department shall attempt to serve notice on such person by certified mail addressed to that person's last known address.

 

b)         Should such attempt to serve notice fail, the Department shall ask the help of the Department of Financial Institutions in advertising the need to locate the person pursuant to 38 Ill. Adm. Code 180.

 

c)         Should such attempt to locate that person fail, the Department shall authorize payment of that benefit and all other benefits due such a person to the primary Beneficiary(ies).

 

d)         If there are no other primary Beneficiaries, the Department shall authorize payment of that benefit to the contingent Beneficiaries.

 

e)         If there are no contingent Beneficiaries, the Department shall authorize payment of that benefit to the estate of the Participant.

 

f)         If there is no open estate, or if the heirs of the estate cannot be  found to open an estate, then seven years after the Participant's death, the Department shall authorize payment of that benefit to the General Revenue Fund of the State of Illinois.

 

(Source:  Amended at 23 Ill. Reg. 6039, effective May 5, 1999)

 

Section 2700.830  Severability

 

If any provision of this Plan shall be for any reason invalid or unenforceable, the remaining provisions shall, nevertheless, continue in effect and shall not be invalidated thereby.

 

Section 2700.840  Days and Dates

 

Whenever a time limit is expressed in terms of a number of days, they shall be consecutive calendar days, including weekends and holidays.  If the last day of a period of days would occur on a weekend or a holiday recognized by the State of Illinois, the last day of the period shall be the next business day following.

 

Section 2700.850  Domestic Relations Orders

 

a)         Notwithstanding Section 2700.800 of this Part, if a judgment, decree or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or the marital property rights of a spouse or former spouse, child, or other dependent of a Participant is made pursuant to the domestic relations law of the state (domestic relations order), then the amount of the Participant's Account Balance shall be paid in the manner and to the person or persons so directed in the domestic relations order.

 

b)         Payment under a judgment, decree or order shall be made without regard to whether the Participant is eligible for a distribution of benefits under the Plan.

 

c)         The Department shall establish reasonable procedures for determining the status of any decree or order and for effectuating distribution pursuant to the domestic relations order.

 

(Source:  Added at 30 Ill. Reg. 8408, effective April 21, 2006)

 

Section 2700.860  IRS Levy

 

Notwithstanding Section 2700.800 of this Part, the Department may pay from a Participant's or Beneficiary's Account Balance the amount that the Department finds is lawfully demanded under a levy issued by the Internal Revenue Service with respect to that Participant or Beneficiary or is sought to be collected by the United States Government under a judgment resulting from an unpaid tax assessment against a Participant or Beneficiary.

 

(Source:  Added at 30 Ill. Reg. 8408, effective April 21, 2006)

 

Section 2700.870  Mistaken Contributions

 

If any contribution (or any portion of a contribution) is made to the Plan by a good faith mistake of fact, then, within one year after the payment of the contribution and upon receipt in good order of a proper request approved by the Department, the amount of the mistaken contribution (adjusted for any income or loss in value, if any, resulting from the good faith mistake) shall be returned directly to the Participant or, to the extent required by the Department, to the Employer, who will then return the funds to the Participant.

 

(Source:  Added at 30 Ill. Reg. 8408, effective April 21, 2006)

SUBPART I: AMENDMENT OR TERMINATION OF PLAN

 

Section 2700.900  Amendment of Plan

 

a)         The Department shall have the authority to propose amendments to this Plan from time to time by submitting them in writing to the Board for approval.

 

b)         No amendment or modification shall adversely affect the rights of Participants or their Beneficiaries to the receipt of Compensation deferred prior to such amendment or modification unless required by State or Federal law to maintain the tax status of the Plan and any Compensation previously deferred.

 

Section 2700.910  Termination of Plan

 

a)         The Board shall have the authority to terminate this Plan, or to substitute a new Plan.

 

b)         Upon termination of the Plan, each Participant shall be deemed to have withdrawn from the Plan as of the date of such termination, and the Participant's full Compensation will be restored to a nondeferred basis.

 

c)         The Plan will otherwise continue in effect until all Deferred Compensation Accounts have been distributed in accordance with the Plan.

 

d)         Changes in the Plan, termination of the Plan, or substitution of a new Plan shall be made in accordance with the Illinois Administrative Procedures Act (Ill. Rev. Stat. 1981, ch. 127, pars. 1001 et seq.).

 

Section 2700.920  Merger with Prior Plans

 

a)         This Plan constitutes an amendment and restatement of the State Employees' Deferred Compensation Plan (80 Ill. Adm. Code 2700) adopted at 7 Ill. Reg. 10845, effective August 31, 1983 (Prior Plan III).

 

b)         All Participants and any Compensation deferred under the Prior Plans are, from the Effective Date of this Plan, governed by the terms of this Plan subject to the following provisions:

 

1)         All deferrals elected under the Prior Plans shall continue without further action so long as they do not exceed the limits defined in Section 2700.430 of this Part.

 

2)         Any investment requests made under the Prior Plans shall continue to apply to any deferrals made under this Plan until changed by a Participant in accordance with Section 2700.640 of this Part.

 

3)         Any election of the method of distribution of benefits made through Prior Plan I shall be void, and a Participant or Beneficiary may elect the form of distribution in accordance with Sections 2700.710 and 2700.730 of this Part.

 

4)         Any election of the method of distribution of benefits made through Prior Plan II and III shall remain in full force and effect unless it conflicts with the provisions of this Plan.  In the event of a conflict, a Participant or Beneficiary shall have 30 days from date of notification to elect a new method of distribution consistent with the requirements of this Plan.

 

c)         Any Delayed Distribution Dates elected under Prior Plan II by a Participant or Beneficiary made prior to October 27, 1982 shall remain in full force and effect and are irrevocable.  Delayed Distribution Dates elected under Prior Plan II made after October 27, 1982 shall be void if they conflict with the provisions of this Plan.  A Participant whose Delayed Distribution Date is void shall have his or her Deferred Compensation Account distributed in accordance with Section 2700.730 of this Part.

 

d)         A Participant who has elected a Delayed Distribution Date but not yet reached it may choose, within 60 days from the effective date of this Plan, to transfer the value of the account to another eligible plan authorized under section 457 of the Code.

 

(Source:  Amended at 30 Ill. Reg. 8408, effective April 21, 2006)

 

Section 2700.APPENDIX A  Administrative Rules (Repealed)

 

Section 2700.EXHIBIT B  Administrative Rule II (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 7224, effective May 2, 1994)

 

Section 2700.EXHIBIT C  Administrative Rule III (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 7224, effective May 2, 1994)

 

Section 2700.EXHIBIT D  Administrative Rule IV (Repealed)

 

(Source:  Repealed at 18 Ill Reg. 7224, effective May 2, 1994)

 

Section 2700.EXHIBIT E  Administrative Rule V (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 7224, effective May 2, 1994)

 

Section 2700.EXHIBIT F  Administrative Rule VI (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 7224, effective May 2, 1994)