trs supplemental savings plan

fax:630.783.3231 Likely, no. At that time, considerable concerns and objections were raised by school business officials and other administrators which, together with technical problems on TRSs end, further delayed implementation. To assist TRS-covered employers in meeting its obligations to offer the SSP, our firm has developed model forms including a resolution, guidance document, checklist, and sample notice to employees, and notice to union(s). fax:630.783.3231 WebThe TRS Supplemental Savings Plan (SSP) is a great way to Bring More to your financial future. Districts will not be required to stop offering their 403(b) plans if they agree to the SSP Employer Participation Agreement. On February 8, 2021, TRS sent out materials regarding the SSP to school district administrators throughout the State. 2023 Robbins Schwartz. on TRS Supplemental Savings Plans (SSP) Guidance, Breaking Down the Latest Guidance from the U.S. Department of Education on Prayer and Religious Expression in the Public School Setting, Supreme Court Allows ADA Claim in Special Education Dispute. TRS Supplemental Savings Plan - trsil.org Franczek P.C. Directions viaGoogle Maps, 2990 N Perryville Rd, Suite 4144B Directions viaGoogle Maps, 301 North Neil Street The new provision directed TRS to offer a defined contribution benefit to active members of the [TRS retirement system], (40 ILCS 5/16-204) intended to offer teachers a high quality vehicle to supplement their retirement savings. IL. The obligation to offer an optional defined contribution plan was delegated strictly to TRS (the System). Champaign, IL 61820-3169 Included in this list of responsibilities are: The Plan itself imposes requirements on an Employer (i.e., the district). Directions viaGoogle Maps. With this Bulletin, TRS has still NOT established a date by which employers must adopt the new TRS Plan. On January 1, 2021, TRS announced that it was close to introducing its first-ever defined contribution plan, which it referred to as the TRS Supplemental Savings Plan Keep in mind that Employers wishing to replace their existing Section 457(b) plans with the TRS Plan will need to terminate their existing Section 457(b) plan(s) in accordance with IRS guidance and implementing regulations. TRS further announced that enrolled SSP participants will make their initial payroll contribution to the SSP on or after March 1, 2022. Directions viaGoogle Maps, 550 Warrenville Road The amendment may have been part of an effort to block the considerable concerns expressed by school districts when the SSP was first announced in February. The intent of the new provision was to move away from the 403(b) plans many school districts were offering employees and that largely differ from district-to-district and to instead provide one uniform, high quality, low cost plan that teachers can rely on Id. TRS Supplemental Savings Plan (SSP) On January 10, 2022, teachers will be able to begin submitting applications to the Illinois Teachers Retirement System (TRS) to participate in TRSs new Supplemental Savings Plan (SSP) which is a tax-deferred compensation program under Section 457(b) of the United States Internal Revenue Code. Payroll deductions for participants are expected to start in March, 2022. Collinsville, IL 62234-4658 Create and maintain the benefit in full compliance with State and federal laws and using generally acceptable practices. The statutory language and legislative history do not explicitly require school districts to approve a Participation Agreement related to their participation in the Supplemental Savings Plan with TRS. 2023-24 Crowley ISD Benefit Guide by FBS - Issuu That being said, TRS is required to offer this option to all of its members and members must be given the opportunity to enroll in the Plan. A pension plan for teachers who established membership: on or Your deductibles and maximum out-of-pocket ph: 815.390.7090 fax:312.332.7768 The SSP is an optional savings plan that ph: 312.332.7760 TRS is aware there are many questions regarding implementation of the SSP and has assured us that all questions will be answered before the SSP is implemented at the local level. Rockford, IL 61107-6827 Thus, to the question of must a district approve this resolution the answer is likely no. The legislatures purpose in enacting this amendment was to offer eligible teachers a low cost, uniform, high performing savings plan to supplement their current retirement savings options. We suggest consideration be given to waiting until at least March for the board of education to act on the EPA and submit the resolution and EPA to TRS. In our view, issues with the current EPA and the SSP may be resolved with additional time and there may be technical advantages to not being in the start-up group of districts. To date, it appears that approximately 300 of the 800 plus school districts in Illinois have submitted the EPA to TRS. TRS will not monitor contributions made to the Employers current Section 457(b) plans; thus, Employers will need to monitor employee and Employer 457(b) contributions to administer the aggregate contribution limit across multiple 457(b) plans for their participating employees. For example, the Employer is responsible for employment status reporting, contribution processing, and contribution limit monitoring. Last week TRS published Employer Bulletin 22-15 on its Supplemental Savings Plan (SSP), a new SSP Employer Participation Agreement, and a form of resolution for adoption by school boards to approve the Participation Agreement. Directions viaGoogle Maps, 550 Warrenville Road They will also begin conducting training classes and contribution payroll testing in December 2021, according to the Bulletin. Please contact Joseph J. Perkoski, Catherine R. Locallo, or Susan E. Nicholas for fee information, the forms, or if you have questions related to implementation. Suite 400 Participation is limited to active TRS-eligible employees who are full-time or part-time contractual employees. Trans., 2018 Reg. TRS Ready to Implement Opt-In Elections for the Supplemental Enter into Salary Reduction Agreements with employees wishing to participate in the Plan, Remit employee and, potentially, employer contributions to the Plan, and, Comply with other responsibilities as may be delegated to the Employer by the Administrator.. Importantly, the FAQ also scaled back language regarding a districts obligation to enter into the Participation Agreement moving away from must and more towards may. That being said, questions still linger on what Districts are required to do with respect to this new TRS SSP and what the impact of entering into the Agreement may be. TRS Components Decision Tree Recent 403(b) for Active Members General HTML Content 1 Changes to TRS 403(b) Certification and Registration As of September 1, Chicago, IL 60603-5144 125 (Ill.2018). These model forms are available for a flat fee. Log in to your account today to take advantage of tools and resources that will ph: 618.343.3540 Readers of this information should not act upon any information contained on this website without seeking professional counsel. Feb 17, 2021 Share to: Twitter Facebook In 2018, the Illinois legislature amended the Illinois Pension Code to add a requirement that the Teachers Retirement Eligible TRS Members can now enroll in the optional TRS Supplemental Savings Plan! Thus, in agreeing to enter into the Employer Participation Agreement, a district is also agreeing to comply with any stated Employer obligations specified in the Plan itself. The Plan and the implementing statute make it optional for an employer to provide either a matching contribution or a set employer-contribution, but it does not require employers to do so. H.R. The Bulletin provides helpful information regarding how the TRS Plan will operate and makes some important points for Employers to consider. Collinsville, IL 62234-4658 No. Currently, these include the requirements that districts: Notably, these mirror the Employer obligations listed in the Participation Agreement. TRS indicates in the Bulletin that it will assist with the transfer of assets but not with termination of the existing plan. 100-0769. Offer an optional defined contribution benefit option to active TRS members who choose to participate. TRS Supplemental Savings Plan informational landing page, TRS 457(b) Deferred Compensation Supplemental Savings Plan, Employer Bulletin: SSP Employer Participation Agreement Must Be Uploaded by March 31, 2021, Implementation of Faiths Law and Related Resources, School is Out for Summer Now it is the Administrators Turn, Better School Lunches Act Allows Districts to Consider Additional Factors When Awarding Contracts, COVID-19-Related Administrative Leave Legislation Signed Into Law, Governor Pritzker Vetoes School Employee and Wage Protection Bill, but Signals Compromise. In 2018, the Illinois legislature amended the Illinois Pension Code to add a requirement that the Teachers Retirement System of Illinois (TRS) provide an optional defined contribution benefit to all eligible members of TRS. Home | Teachers' Retirement System of the State of Illinois Teachers Retirement System of the State of Illinois 403(b) for Active Members - Teacher Retirement System Timely remitting contributions to the Plan, Monitoring employee compliance with contribution limits imposed under the law, and. However, employees can submit a new Agreement with the district anytime they wish to revise their contribution. While it is optional for TRS members to participate, TRS maintains that it is mandatory that all TRS Employers (including all public school districts contributing to TRS) adopt the TRS Plan. One thing to note, like 403(b) plans, 457(b) plans are not subject to IRS non-discrimination testing for employers. This blog/website is made available for educational purposes only. The Plan was then amended in October 2020. These Employers will purportedly have a choice whether to: (1) offer the TRS Plan alongside their existing plans; or (2) replace their existing plan with the TRS Plan. We are also identifying other options which will be best discussed on an individual client basis to permit fuller consideration of next steps and to preserve attorney client privilege. Whitt Law has been in contact with System staff. Nothing in the statute places an affirmative obligation on school districts to offer this benefit to its employees. This blog/website should not be used as a substitute for seeking competent legal advice from a licensed professional attorney in your state. Rockford, IL 61107-6827 ph: 312.332.7760 TRS Supplemental Savings Plan November Update - Franczek P.C. WebWhat is the TRS SSP? Plan details can be found here. Overall implementation of the SSP was delayed by TRS. TRS states that this Participation Agreement must be completed and returned by every employer in order to meet the requirements of ILCS 5/16-204. TRS position is based on Section 457(b) of the Internal Revenue Code, which requires an employer to approve a participation agreement as a prerequisite for employee participation in an approved plan. TRS Supplemental Savings Plan November Update | JD Supra Determining and monitoring employee eligibility under the Plan. Ultimately, TRS likely needs districts to agree to participate in order to meet these legal mandates. On January 1, 2021, TRS announced that it was close to introducing its first-ever defined contribution plan, which it referred to as the TRS Supplemental Savings Plan (SSP). Annual Enrollment 6 2. The SSP will be implemented pursuant to the provisions of 457(b) of the Internal Revenue Code and will be optional to TRS members. WebPublic Act 100-7692022 Public Act 102-0540 The TRS SSP launched in became law, became law, requiring:requiring TRS to offer a defined January with deferrals beginning in Bring More to Your Retirement with the TRS Supplemental Likely, yes. DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. fax:618.343.3546 It is not intended to provide specific legal advice to your individual circumstances or legal questions. TRS previously directed districts to complete and return the participation agreement located on the TRS website on or before March 31, 2021. Your plan year runs from Jan. 1 Dec. 31. Sign up for our monthly newsletter for the latest school law news. In addition to the materials recently mailed to school districts, TRS has made the following documents available online: Our office is aware that those materials, and the SSP itself, have created many questions. Additionally, employees may elect to roll-over their 403(b) plan funds into their 457(b) plan. The Bulletin can be found here:Employer Bulletin FY22-15 (trsil.org), 2022 Hodges, Loizzi, Eisenhammer, Rodick & Kohn LLPItasca 847-670-9000Peoria 309-671-9000O'Fallon 618-622-0999, Partner & Chair, Corporate Practice Group, School Insurer Not Obligated to Cover Sex Abuse Claim Under Claims-Made Policy, Steve Richart to Discuss FOIA for School Support Professionals at ASBOs 2021 SupportCon. If a TRS-covered employer has not already done so, a resolution and Employer Participation Agreement should be adopted by the governing board as soon as possible to allow eligible employees to enroll in the SSP. If already adopted, employers are to complete an Authorized Contact form which is available on the TRS website. Plans - Department of Retirement Systems Lisle, IL 60532-4311 Most likely nothing. Employer Training Webinar for TRS Supplemental Savings Plan fax:217.356.3548 Suite 400 See P.L. Employees may elect to participate in more than one defined contribution plan including both a 403(b) and a 457(b) plan. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 55 West Monroe The responsibility of ensuring an employees contributions to the Plan do not exceed the yearly contribution limits is the largest liability concern for districts. Thus, TRS must find a way to make the plan available to all of its members who wish to participate. The requirement for a state-wide SSP became law in 2018, with TRSs initial implementation efforts announced in February of this year. For further assistance regarding the new TRS Supplemental Savings Plan and its impact on school districts, please contact any Robbins Schwartz attorney. WebEligible TRS members can now enroll in the new Supplemental Savings Plan (SSP). Whitt Law will provide further information to its clients as TRS issues further guidance. ph: 217.363.3040 U.S. Supreme Court Raises Bar for Denying Employee Religious Accommodations, U.S. Supreme Court rejects Race-Conscious College Admissions Programs, Department of Ed Releases Post-Kennedy Guidance on Religious Expression in Public Schools, ISBE Releases New Resource Guide and FAQ Regarding Faiths Law, National Labor Relations Board Files Complaint against NCAA over Status of College Athletes. HEALTH SAVINGS ACCOUNT (HSA) DENTAL VISION. The announcement can be found here. Suite 800 Directions viaGoogle Maps, 301 North Neil Street Further, information on the new TRS reporting rules resulting from the added SSP benefit (Jan. 2021 updated) can be found here. Until that time, any existing eligible member must opt-in to the SSP if they wish to participate. The Participation Agreement binds the school district to the 457(b) Deferred Compensation Supplemental Savings Plan document (the Plan Document) which appears to be unchanged from the October 30, 2020 amended version distributed to school districts by TRS in February of 2021. In fact, TRS seems to acknowledge this in its updated Bulletin FAQ, stating that it urges each employer to formally approve the SSP Employer Participation Agreement, and that [w]hen considering the participation agreement, employers are encouraged to review the SSP Plan Document and consult their own legal counsel. Notably, this new language is far softer than the must initially communicated to TRS-employers back in early February. In addition, employers should remember that conferral of this new benefit may result in requests to bargain over its impact, even if the benefit does not require the employer to contribute to the plan. TRS will be releasing additional information in forthcoming Bulletins and in Employer portals. WebTRS to develop an optional defined contribution retire-ment plan to supplement the existing defined benefit pension plan. var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); | Attorney Advertising, Copyright var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); JD Supra, LLC. 8/31/2024 CROWLEY ISD BENEFIT GUIDE EFFECTIVE: - 2023 - 2024 Plan Year 1 HOW TO ENROLL PG. Therefore, even if a school district offers another optional defined contribution plan to its employees, it is required to enter into a separate agreement with TRS to facilitate employees statutory right to participate in the TRS Supplemental Savings Plan. All Rights Reserved. Until that occurs, though, it does not appear that a district must agree to the SSP Employer Participation Agreement. In addition, TRS relies on the language of 5/16-204, which states that eligible teachers must be able to participate in the defined contribution benefit created by TRS. If an Employer makes a mistake in operation, the Bulletin states that the Employer will be responsible for making formal corrections in accordance with the IRS guidance. Finally, the Bulletin also sets forth some of the Employers responsibilities under the TRS Plan. 510 Regency Centre As a TRS employer, we strongly encourage you to prepare for the January launch of the new Supplemental Savings Plan administered by Voya Financial. It may be in the best interests of school districts to delay school board action on the SSP Employer Participation Agreement at least until January or February of 2022 and to continue to seek changes in the law and TRS requirements to address the problems which still exist. Chicago, IL 60603-5144 The only way to effectively provide that option is to read an implicit obligation of school districts participation. Even now, TRS has not set a deadline by which the Participation Agreement must be adopted. That being said, TRS is the legally mandated Administrator of the Plan and should, therefore, carry the most liability in ensuring the Plan is properly administered and complied with. TRS has advised it is not ready to implement the automatic enrollment provisions of the SSP. The Participation Agreement makes clear that, by entering the Agreement, districts will be solely responsible for monitoring the limit under [the] Plan to ensure the contributions do not exceed the limits imposed by the IRS. Accessing your SSP - Voya Financial Login Please contact the Franczek attorney with whom you regularly work or Todd Faulkner to discuss in detail the options of moving forward with approval of the EPA in order to begin employee payroll deductions and contributions to the SSP in March or delaying action on the EPA until at least March. Unfortunately, none of the problems in the Plan Document were addressed regarding liability protection, fiduciary duties, expenses of administration and reporting, unfettered TRS rights to amend the Plan Document and monitoring of contribution limits. These eligible employees can begin to sign up for the SSP as soon as January 10, 2022, provided their employers have formally agreed to offer the SSP. The scope of that risk is still relatively uncertain and could change over-time, depending on changes that may be made to the Plan or other state and federal laws governing retirement savings plans. In 2018, the Illinois legislature amended the Illinois Pension Code to add a requirement that the Teachers Retirement System (TRS) provide an optional defined Directions viaGoogle Maps, New Supplemental Savings Plan Offered by Teachers Retirement System. Help Bring More to your future retirement plans. Further, the Agreement will be considered irrevocable while it is in-effect. Directions viaGoogle Maps. TRS Supplemental Savings Plans (SSP) Guidance - Kriha A pension plan for teachers hired before Oct. 1, 1977. ph: 630.929.3639 2022 TRS-CARE: Care You Can Count On 2022 TRS-CARE: This is an affordable supplemental plan that pays you should you be inpatient hospital confined. We are monitoring TRS communications and will share any updates or clarifications as they become available. Instead, TRS apparently just reissued the Plan Document in the same form as presented last February. On February 8th, TRS issued a communication regarding the new TRS Supplemental Savings Plan (SSP). We proposed Plan Document changes to TRS to mitigate these problems, but TRS declined to make any modifications. It also established automatic enrollment in the SSP and contribution amounts for new members on or as soon as practicable after January 1, 2022, unless the new member expressly opt-outs of enrollment. Produce an annual report on participation and the benefit. EECU (817) 882-0800. Implementation of the opt-out part of the SSP is expected later this year. 2023 Robbins Schwartz. - Voluntary 457(b) plan offered by the Teachers Retirement System - Administered by Voya Financial - Participants can elect pre-tax and/or after-tax (Roth) Sess. fax:618.343.3546 Entering salary reduction agreements with employees. Suite 800 Teachers Retirement Systems Supplemental Savings Plan WebTeachers Retirement System (TRS) TRS Plan 1. We are now seeking legislative support to address these problems. Lisle, IL 60532-4311 Additionally, in its February 2021 Employer Bulletin, TRS instructed employers that This agreement must be formally adopted by each employer with a deadline of March 31, 2021. The term Salary Reduction Agreement is defined in the Plan to mean an agreement between the district (employer) and its employee (the Plan participant) specifying the amount of the employees salary he/she wishes to contribute to his/her Plan for each pay-period. On January 10, 2022, teachers will be able to begin submitting applications to the Illinois Teachers Retirement System (TRS) to participate in TRSs new Supplemental New Supplemental Savings Plan Offered by Teachers Retirement School district participation in the SSP is required by the Illinois Pension Code, but TRS has not set a deadline by which boards of education must approve and submit the EPA. This includes knowing if an employee has additional 457(b) plans that must be included when calculating an employees total yearly contributions. ph: 630.929.3639 Are Districts Legally Mandated to Enter This Agreement and Pass This Resolution? TRS Plan 2. Administration of the SSP will be the responsibility of TRS and Voya Financial of NYC. TRS Supplemental Savings Plan Hodges, Loizzi, Eisenhammer, This week, TRS issued Employer Bulletin FY22-15 providing additional information on the new Internal Revenue Code Section 457(b) program that TRS has been establishing the TRS Supplemental Savings Plan (TRS Plan), which is codified at Section 16-204 of the Illinois Pension Code. 4 How to Enroll 4-5 Annual Benefit Enrollment 6-11 1. One advantage to having both a 403(b) and a 457(b), though, is that an employee will be able to double his or her yearly contributions without running afoul of the annual contribution limits placed on individual accounts. Build a Morning News Digest: Easy, Custom Content, Free! TRS Supplemental Savings Plan - Teachers' In general, complying with the general terms and conditions of an Employer under the Plan. However, TRS will allow participation only if the board of education which employs the teacher has adopted a resolution approving TRSs prescribed form of Employer Participation Agreement (EPA), submitted the resolution and EPA to TRS and received TRS approval.. Leg. In October 2019, TRS formally adopted the TRS SSP. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 55 West Monroe 2023-24 New Braunfels ISD Benefit Guide by FBS - Issuu

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