Section 3.7 Financial Services: Human Resources
Tax-Deferred Annuities (2 Policies of the Board of Trustees, Section 2-D)
Issued: January 2011
Replaces: January 2003
- Administration of the Program—
- The tax-deferred annuities shall be referred to as the Supplemental Retirement Plan (“Plan”). This is a voluntary retirement benefit plan.
- Each campus is guided by its own Supplemental Retirement Plan Document in compliance with the Internal Revenue Service Code (“Code”). The Plan document may be modified as needed to comply with future changes of the Code.
- The Human Resource Directors at the respective campuses shall be the officer designated to administer this Plan in accordance with the referenced policy, these guidelines and the respective campuses’ Plan document.
- At least annually, the Supplemental Retirement Plan Best Practices Committee (consisting of each campuses’ Human Resource Directors or their delegates, the Benefits Managers, and other appointed SIU employees) shall review the Plan.
- Responsibilities of Employees participating in the Plan
- Employees who choose to participate in this voluntary benefit Plan must comply with the participant responsibilities with regard to eligibility, conditions and applicable contribution limits as set forth in the Plan document and by the Internal Revenue Service.
- Employees may change or revoke their contribution in accordance with the Plan document.
- A minimum annual contribution, established in each campuses’ Plan document, is required. Reductions will be restricted to whole dollars (or whole percentages rounded to whole dollars for SIUC and SIUC School of Medicine employees only).
- Responsibilities of Companies participating in the Plan
- The Plan Administrators at each campus will determine when new companies may be added to the Plan.
- All companies are required to comply with the Board policies, as well as these guidelines.
- Insurance companies participating in the plan must have an A.M. Best’s rating of A+ or better.
- All companies must execute a signed Administrative Services Agreement with each campus they request to participate with and remain in compliance with all conditions contained in the agreement.
- All companies will be bound by all conditions of the Plan document which is available on the SIUC and SIUE Human Resources – Benefits websites.
- At least annually, the Supplemental Retirement Plan Best Practices Committee will meet and review the performance of the approved companies in the Plan. Performance standards are factors including but not limited to, annual financial results; overall company rating; effective, efficient and adequate service to employees and past participants; and compliance with the Plan document. Effective, efficient and adequate services includes, but is not limited to, providing properly trained sales representatives familiar with the Code and who are able to complete all necessary documentation in a timely and competent manner in compliance with the Code.
- All companies which at any time fail to meet the requirements of the Board Policies and these guidelines shall be placed on a watch list or removed immediately depending on the situation. If the company is placed on a watch list, the company will be closely monitored for three months by the appropriate campus and will be removed from the list of approved companies if a correction or improvement is not made. The burden shall be on the company to provide documentation acceptable to each campus of the correction or improvement needed to be removed from the watch list. Each campus Plan Administrator is authorized to remove a company from their Plan when necessary. Any company removed from the list of approved companies shall be expected to service those contracts that remain active with the company.
Last updated: 18 Jan 2011