Board of Trustees to vote on retirement plan changes

Debby Hernandez, Administration Editor

The Board of Trustees will vote on Eastern’s newly amended 403(b) retirement plan at 1 p.m. Friday in the Grand Ballroom of the Martin Luther King Jr. University Union.

The voluntary tax-deferred plan, which was last amended in 1999, is required to be amended again because of new regulations established by the Internal Revenue Service.

The plan is an addition to the State Universities Retirement System pension offered to university employees.

Those eligible can defer part of their compensation to the plan as a supplement to their retirement savings.

Under the plan, employees must contribute at least $200 a year, and they are limited as to how much they can contribute based on their age and years of service.

Changes the board will need to address include allowing after-tax contributions and eliminating “catch-up contributions” within the plan.

Employees will still be able to make catch-up contributions through another plan known as the State of Illinois Deferred Compensation 457 Plan, according to the approval request.

Under the 457 Plan, all employees will be allowed to defer up to $18,000, while those over age 50 will be able to defer $24,000, according to the Illinois Department of Central Management Services.

Board members will also review the inclusion of ADMIN Partners as a third party to administer the 403 (b) Plan.

The board’s executive session will begin at 11:45 a.m. Friday.


Debby Hernandez can be reached at 581-2812 or [email protected]