Illinois Administrative Code › Title 80 - PUBLIC OFFICIALS AND EMPLOYEES › Part 2750 - TAX DEFERRED ANNUITY PLAN › Section 2750.10 - Faculty and Administrative Employees - Benefits

Current through Register Vol. 48, No. 28, July 12, 2024
a) In accordance with the applicable
			 provisions of the United States Internal Revenue Code and "An Act in relation
			 to State finance", approved June 10, 1919, as amended, the Board of Regents has
			 adopted a tax sheltered annuity plan for the employees of the Regency System to
			 be known as the Tax Deferred Annuity Plan.
b) Description of Plan
1) Approval of Companies
The Board of Regents will approve companies to write tax
				deferred Annuity contracts under this plan.
2) Conditions of Agreement with Employees
Each person now employed or hereafter employed by the Board of
				Regents shall, while this plan remains in effect, have the privilege of
				electing to participate in the Tax Deferred Annuity Plan in consideration for
				which the Board of Regents shall pay the amount of such adjustment in earnings
				to any one insurance company approved by the Board of Regents, as hereinafter
				provided, to be applied as a premium on an annuity contract under which the
				employee's rights are non-forfeitable except for failure to pay future
				premiums.
A) Each employee who desires
			 to participate in the plan shall elect to do so in writing on forms provided by
			 the University's insurance office or other designated office.
B) New employees of the Board of Regents who
			 have a tax-deferred plan (excluding any life insurance) purchased through a
			 previous employer from a company which is not on the Regency System approved
			 list of companies may exercise one of two options:
i) Suspend contributions to that company
			 leaving prior contributions on deposit until retirement age or
ii) exercise a tax-rollover permitted by
			 Internal Revenue Service which permits direct transfer of tax-deferred annuity
			 contributions from one company to a company on the Regency System approved list
			 without making the transferred contributions reportable income in the year of
			 transfer.
C) Any such
			 election to participate in this program shall become effective as soon as
			 possible, but no later than 30 days after the date on which the election form
			 is delivered to the applicable insurance office.
D) An employee may revoke participation only
			 in accordance with applicable Federal and State law with such revocation to be
			 effective as soon as possible but not later than the first payroll period
			 following thirty (30) days after the date of written revocation.
3) Conditions of Approval
			 Affecting Participating Companies
A) All
			 tax-deferred annuity contracts issued must comply with the United States
			 Internal Revenue Code, as amended. Participating companies must be authorized
			 by the Director of Insurance of the State of Illinois to issue tax-deferred
			 annuity contracts.
B) All monies
			 withheld through agreements between the Board and the employee will be used to
			 purchase only qualified tax-deferred annuity contracts and will exclude waiver
			 of premium provisions, disability income provisions, and life
			 insurance.
C) Upon request the
			 company must provide the Secretary of the Board of Regents all information
			 about its contracts including, but not limited to, all charges and commissions
			 schedules, and must agree that this information may be made available to
			 employees on a comparative basis with other companies. A principal officer of
			 the company will attest to the accuracy of the information provided.
4) Administration of Tax-Deferred
			 Annuity Plan
A) This plan shall be
			 administered by the Secretary of the Board of Regents who shall have the
			 authority to prescribe such additional rules not inconsistent herewith, as are
			 deemed appropriate for accomplishing the purposes herein set forth.
B) Neither the Board of Regents, nor any
			 representative thereof, will recommend any one qualified company.
C) Upon receipt of documented evidence of any
			 violation of Board regulations pertaining to tax-deferred annuities by a
			 representative of an approved company, the Secretary may prohibit the issuance
			 of any additional agreements to Regency employees for an indefinite period of
			 time appropriate to the seriousness of the violation.
D) The Board will notify the approved company
			 of the violation of its Regulations and will include a copy of the specific
			 regulation violated. It will give the company 60 days to respond to the notice
			 of violation, including the actions it will take to prevent a repetition of the
			 violation. The response will be reviewed by the Board. If the Board is
			 satisfied that the company has taken corrective action to prevent a recurrence
			 of the violation, no penalty will be imposed. If the Board feels that the
			 company has not taken corrective action to prevent a recurrence of the
			 violation, the privilege of selling tax deferred annuity contracts may be
			 suspended for a minimum of 60 days.