Illinois Supplemental Retirement Plan

• Category: Corporations - Public - Retirement
• State: Multi-State
• Control #: US-CC-21-104
• Format: Word; Rich Text

Description

21-104 21-104 . . . Supplemental Executive Retirement Plan which permits eligible management and highly-compensated employees to receive benefits that will compensate them for limitations imposed by Sections 401(a)(17), 401(k), 401(m) and 402(g) of Internal Revenue Code on salary deferrals and matching contributions under 401(k) plan The Illinois Supplemental Retirement Plan (ISP) is a retirement savings program offered to employees of the state of Illinois and participating units of local government. It serves as an additional retirement savings option apart from the traditional pension plan provided by the Illinois Municipal Retirement Fund (IMF). The ISP is designed to supplement an employee's retirement income and provide long-term financial security. It offers various investment options, allowing participants to choose investment portfolios that best align with their risk tolerance and financial goals. Contributions to the ISP are made through pre-tax payroll deductions, which can help reduce taxable income and potentially increase savings over time. One of the key benefits of the ISP is the flexibility it offers in terms of contributions. Participants can choose to contribute a percentage of their salary or a fixed dollar amount, which can be adjusted periodically to accommodate changing financial situations. This allows individuals to have control over their savings and the ability to increase contributions as their income grows. Furthermore, the ISP offers a tax-deferred growth feature, meaning that participants do not have to pay taxes on the investment earnings until they begin withdrawing funds during retirement. This tax advantage can help maximize savings and potentially result in more substantial retirement income. There are different types of Illinois Supplemental Retirement Plans available, including the Deferred Compensation Plan (DCP). DCP is a voluntary retirement savings plan offered to state and local government employees in Illinois. It allows participants to contribute a portion of their salary on a pre-tax basis, similar to a 401(k) plan. The funds in the DCP can be invested in a range of investment options to meet participants' individual investment preferences. Another type of supplemental retirement plan is the 457(b) plan, which is exclusively available for employees of governmental organizations. Similar to the DCP, the 457(b) plan allows for pre-tax contributions, tax-deferred growth, and a variety of investment options. It offers flexibility in terms of contributions and distributions, providing participants with control over their retirement savings. Overall, the Illinois Supplemental Retirement Plan, including the DCP and 457(b) plans, provides state and local government employees with valuable retirement savings options. These plans offer flexibility, tax advantages, and investment choices, aiming to enhance financial security during retirement.

The Illinois Supplemental Retirement Plan (ISP) is a retirement savings program offered to employees of the state of Illinois and participating units of local government. It serves as an additional retirement savings option apart from the traditional pension plan provided by the Illinois Municipal Retirement Fund (IMF). The ISP is designed to supplement an employee's retirement income and provide long-term financial security. It offers various investment options, allowing participants to choose investment portfolios that best align with their risk tolerance and financial goals. Contributions to the ISP are made through pre-tax payroll deductions, which can help reduce taxable income and potentially increase savings over time. One of the key benefits of the ISP is the flexibility it offers in terms of contributions. Participants can choose to contribute a percentage of their salary or a fixed dollar amount, which can be adjusted periodically to accommodate changing financial situations. This allows individuals to have control over their savings and the ability to increase contributions as their income grows. Furthermore, the ISP offers a tax-deferred growth feature, meaning that participants do not have to pay taxes on the investment earnings until they begin withdrawing funds during retirement. This tax advantage can help maximize savings and potentially result in more substantial retirement income. There are different types of Illinois Supplemental Retirement Plans available, including the Deferred Compensation Plan (DCP). DCP is a voluntary retirement savings plan offered to state and local government employees in Illinois. It allows participants to contribute a portion of their salary on a pre-tax basis, similar to a 401(k) plan. The funds in the DCP can be invested in a range of investment options to meet participants' individual investment preferences. Another type of supplemental retirement plan is the 457(b) plan, which is exclusively available for employees of governmental organizations. Similar to the DCP, the 457(b) plan allows for pre-tax contributions, tax-deferred growth, and a variety of investment options. It offers flexibility in terms of contributions and distributions, providing participants with control over their retirement savings. Overall, the Illinois Supplemental Retirement Plan, including the DCP and 457(b) plans, provides state and local government employees with valuable retirement savings options. These plans offer flexibility, tax advantages, and investment choices, aiming to enhance financial security during retirement.