Illinois Administrative Code › Title 80 - PUBLIC OFFICIALS AND EMPLOYEES › Part 2700 - STATE (OF ILLINOIS) EMPLOYEES' DEFERRED COMPENSATION PLAN › Subpart B - DEFINITIONS › Section 2700.200 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
a) Whenever used in
				the Plan, the following terms shall have the meanings set forth in this Section
				unless otherwise expressly provided, and when the defined meaning is intended,
				the term is capitalized:
"Account Balance" means the bookkeeping account maintained
				  with respect to each Participant that reflects the value of the Deferred
				  Compensation credited to the Participant, including Annual Deferrals, the
				  earnings or loss of the Investment Option (net of Investment Option expenses)
				  allocable to the Participant, any transfers for the Participant's benefit, any
				  distribution made to the Participant or the Participant's Beneficiary, the
				  value of any outstanding Participant Loans and as adjusted for Loan repayments
				  and as otherwise provided in the Plan. If a Participant has more than one
				  Beneficiary at the time of the Participant's death, then a separate Account
				  Balance shall be maintained for each Beneficiary. The Account Balance includes
				  any subaccount established for rollover contributions, Roth rollover
				  contributions, Roth Contributions, and plan-to-plan transfers made for a
				  Participant, the account established for a Beneficiary after a Participant's
				  death, and any account or accounts established for an alternate payee (as
				  defined in Code section 414(p)(8).
"ACH Debit" or "Automated Clearing House Debit" means an
				  electronic system that allows a payee, with approval of the payer, to initiate
				  a debit from the payer's bank account.
"Alternate Retirement System" means this Plan, which is
				  described in section 457 of the Internal Revenue Code, when used for purposes
				  of Code section 3121(b)(7)(F) to exclude contractual employees from mandatory
				  Social Security coverage.
"Annual Deferral" means the amount of Compensation deferred
				  in any year.
"Applicable Dollar Amount" means the amount of Compensation
				  allowed to be deferred in any calendar year as established under Code section
				  457(e)(15).
"Auto-Enrollment Eligible Employee" means an Employee who, on
				  or after July 1, 2020, becomes an active member or Participant of a retirement
				  system created under Article 2, 14, or 18 of the Illinois Pension Code
				  [40 ILCS
				  5 ].
"Auto-Enrolled Participant" means a Participant who was
				  automatically enrolled in the Plan and who has not made an affirmative deferral
				  election regarding their Deferred Compensation rate, including opting out of
				  the Plan in accordance with Section
				  2700.410.
"Auto-Enrollment Opt-Out Period" means the 30-day period
				  following the start date of an Employee's employment with an Employer during
				  which Auto-Enrollment Eligible Employees may withdraw from participation in
				  automatic enrollment into the Plan.
"Auto-Enrollment Withdrawal Period" means the 90 days
				  following the end of the Auto-Enrollment Opt-Out Period.
"Beneficiary" means the person, persons or legal entity
				  entitled to receive any undistributed Deferred Compensation that becomes
				  payable in the event of the Participant's death, as designated by the
				  Participant, or provided for in accordance with the Plan.
"Board" means the Illinois State Board of Investment.
"Code"
				  means the Internal Revenue Code (26 U.S.C. 1 et seq.), as amended,
				  or any successor statute.
"Compensation" means all cash Compensation for services to
				  the State, including salary, wages, fees, commissions, bonuses, and overtime
				  pay, that is includable in the Employee's gross income for the calendar year
				  but for a Compensation reduction election under Code section 125, 132(f),
				  401(k), 403(b) or 457(b).
"Custodial Account" means the fund created under and subject
				  to the Custodial Agreement.
"Custodial Agreement" means the written agreement made by and
				  between the State and the Custodian under which the Custodial Account is
				  maintained.
"Custodian" means 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 Code section 408(a)(2)
				  relating to the use of non-bank trustees.
"Deferred Compensation" means that portion of the
				  Participant's Compensation that the Participant defers under this Plan through
				  either Pre-Tax Contributions and/or Roth Contributions.
"Deferred Compensation Account" means an account established
				  under the Plan that is the basis for any distribution payable to the
				  Participant under Section
				  2700.730, including any
				  subaccounts under the Deferred Compensation Account.
"Delayed Distribution Date" means the date a Participant
				  elects to make a decision regarding distribution of the Participant's
				  account.
"Department" means the Department of Central Management
				  Services of the State of Illinois.
"Designated Beneficiary" means an individual designated as a
				  beneficiary by the Participant in accordance with Section
				  2700.415.
"Eligible Designated Beneficiary" means a Designated
				  Beneficiary who is the Participant's surviving spouse, the Participant's child
				  who has not reached the age of majority, a chronically ill person, a disabled
				  person, or any other person who is not more than ten years younger than the
				  Participant, as defined in Code section 401(a)(9)(E)(ii).
"Employee" means
any person, including a person
				  elected, appointed or under contract, receiving Compensation from the State for
				  personal services rendered, including salaried persons
[40 ILCS
				  5/24-102 ], except that any person under contract with
				  the Employer shall be eligible only to the extent the Internal Revenue Service
				  or the Illinois Department of Revenue shall permit or approve.
"Employer" means the State of Illinois, including all
				  officers, boards, commissions and agencies created by the Illinois
				  Constitution, whether in the executive, legislative or judicial branch, all
				  officers, departments, boards, commissions, agencies, institutions,
				  authorities, universities, bodies politic and corporate of the State;
				  administrative units or corporate outgrowths of the State government that are
				  created by or pursuant to statute other than units of local government and
				  their officers, school districts and boards of election commissioners; and all
				  administrative units and corporate outgrowths of these entities as may be
				  created by executive order of the Governor.
"Hardship Committee" means a committee that is responsible
				  for determining whether any Participant has suffered an Unforeseeable Emergency
				  and is entitled to a distribution as provided under Section
				  2700.740, as well as determining
				  Loan claims appeals as provided under Section
				  2700.770.
"Includable Compensation" means the Employee's actual wages
				  in box 1 of Form W-2 for a year for services to the State, as defined in Code
				  section 457(e)(5).
"Investment Option" means any and all investment vehicles
				  established by the Board for the investment of Deferred Compensation.
"Loan" means a Participant loan described in Section
				  2700.770.
"Minor" means a Beneficiary who is under age 18 at the time a
				  benefit under this Plan becomes payable to him or her, unless Illinois law
				  defines another age.
"Minority Option" means an Investment Option with a
				  minority-owned firm that has documented State certification.
"Normal Retirement Age" means age 701/2 unless the
				  Participant has elected an alternative Normal Retirement Age by written
				  instrument delivered to the Department within 30 days after the Participant's
				  Severance of Employment as provided in Section
				  2700.510. A Participant's Normal
				  Retirement Age determines:
the latest time when benefits may commence under this Plan
				  (unless the Participant continues employment after Normal Retirement Age);
				  and
the period during which a Participant may utilize the 3-year
				  Catch-up provision of Section
				  2700.440.
For purposes of clarification: Normal Retirement Age for
				  purposes of the catch-up provision of Section
				  2700.440 can be no later than
				  age 701/2, and benefits must commence no later than the time prescribed in Code
				  section 401(a)(9) (notwithstanding the election of any alternative retirement
				  age to the contrary).
"Participant" means any Employee who has enrolled in this
				  Plan as provided in Section
				  2700.410 and has not had a
				  complete distribution of their Deferred Compensation Account.
"Pay Agency" means any State or State-Related (e.g., State
				  universities, constitutional offices) agency, including Employers, responsible
				  for calculating, deducting, and applying retirement plan deferral amounts for
				  Employees' paychecks. A Pay Agency is also any State or State-Related agency
				  responsible for the communication and/or transmission of retirement plan
				  deferral amounts to other Employers.
"Pay Period" means an accounting period established by the
				  State of Illinois for measuring and paying Compensation earned by Employees. A
				  Pay Period may be monthly, semi-monthly, bi-weekly or another period determined
				  by the Employer.
"Plan" means the State (of Illinois) Employees' Deferred
				  Compensation Plan, as set forth in this Part.
"Plan Year" shall be the tax year as established by the
				  Comptroller for payroll purposes.
"Pre-Tax Contributions" means a Participant's Deferred
				  Compensation that is not includible in the Participant's gross income at the
				  time deferred. A Participant's Pre-Tax Contributions will be separately
				  accounted for, including gain or loss attributable to those Pre-Tax
				  Contributions.
"Prior Plan I" means the State Employees' Deferred
				  Compensation Plan approved and adopted by the Board on September 10,
				  1976.
"Prior Plan II" means the State Employees' Deferred
				  Compensation Plan approved and adopted by the Board on May 18, 1979.
"Prior Plan III" means the State Employees' Deferred
				  Compensation Plan (80 Ill. Adm. Code 2700) adopted at 7 Ill. Reg. 10845,
				  effective August 31, 1983.
"Recordkeeper" means the non-fiduciary, non-discretionary
				  entity that, under contract with the Board, performs functions as directed by
				  the Board or Department, as appropriate, as described in this Part, in its
				  contract with the Board, and as described in any other written agreements with
				  the Board and/or the Department.
"Roth Contributions" means a Participant's Deferred
				  Compensation that is includible in the Participant's gross income at the time
				  deferred. A Participant's Roth Contributions will be separately accounted for,
				  including gain or loss attributable to those Roth Contributions.
"Severance from Employment" means the permanent severance of
				  the Participant's employment relationship with the Employer by means of:
retirement;
discharge;
resignation, provided seniority or continuous service is
				  interrupted;
layoff, unless there is a designated date for return to paid
				  status;
expiration or non-renewal of contract, appointment or term of
				  office;
nonreelection; or
other form of permanent severance as may be provided by
				  appropriate law, contract or rules and regulations.
For the purposes of this definition, neither a break in State
				  service for a period of less than 30 days nor transfers among various branches
				  of State Government shall be considered a Severance from Employment.
An independent contractor is considered to sever service with
				  the Employer upon the expiration of all contracts under which services are
				  performed for the Employer, if the expiration constitutes a good faith and
				  complete termination of the contractual relationship.
"State" means State of Illinois.
"Unforeseeable Emergency" means severe financial hardship to
				  the Participant resulting from an unexpected illness or accident of the
				  Participant or of a dependent of the Participant, loss of the Participant's
				  property due to casualty, or other similar extraordinary and unforeseeable
				  circumstances arising as a result of events beyond the control of the
				  Participant.
"Valuation Date" means the date on which an Investment Option
				  is valued and earnings and/or losses are allocated to Participants' Deferred
				  Compensation Accounts. There shall be a Valuation Date at least once a month
				  and, if practical at the discretion of the Board, more frequent Valuation Dates
				  to reflect, as closely as possible, the earnings and/or losses of any
				  particular Deferred Compensation Account from the time Compensation is deferred
				  and invested in various Investment Options until it is eventually distributed
				  according to the Plan. It may also include each business day/the last day of
				  the calendar month/the last day of the calendar quarter/each December
				  31.
b) Except when otherwise
				indicated by context, any masculine terminology shall also include the feminine
				and neuter and vice-versa, and the definition of any terms in the singular may
				also include the plural.