trs supplemental savings plantrs supplemental savings plan

Included in this list of responsibilities are: The Plan itself imposes requirements on an Employer (i.e., the district). Earlier this month, TRS requested school districts obtain their individual boards approval for participation in a new 457 (b) plan Directions viaGoogle Maps, 550 Warrenville Road Suite 400 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. Determining and monitoring employee eligibility under the Plan. Home | Teachers' Retirement System of the State of Illinois The SSP is an optional savings plan that Lisle, IL 60532-4311 2023 Robbins Schwartz. WebTRS to develop an optional defined contribution retire-ment plan to supplement the existing defined benefit pension plan. 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 Illinois Teachers' Retirement System Supplemental Savings Plan 4 How to Enroll 4-5 Annual Benefit Enrollment 6-11 1. In general, complying with the general terms and conditions of an Employer under the Plan. The Bulletin makes clear that substitutes, part-time noncontractual or extra duty only employees are not eligible to participate in the TRS Plan. This field is for validation purposes and should be left unchanged. Ultimately, TRS likely needs districts to agree to participate in order to meet these legal mandates. In connection with the SSP, TRS-covered employers are responsible for the following: The TRS publication with a detailed overview of the SSP and employer responsibilities can be found here: https://www.trsil.org/sites/default/files/documents/FY22-15.pdf. 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. Annual Enrollment 6 2. TRS will be releasing additional information in forthcoming Bulletins and in Employer portals. 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). It is not intended to provide specific legal advice to your individual circumstances or legal questions. 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 Whitt Law has been in contact with System staff. On February 8, 2021, TRS sent out materials regarding the SSP to school district administrators throughout the State. 2023-24 Crowley ISD Benefit Guide by FBS - Issuu Create and maintain the benefit in full compliance with State and federal laws and using generally acceptable practices. ph: 630.929.3639 Further, Employers are required to send the employees elective deferral to TRS as soon as administratively possible, but no later than 15 business days after the payroll period end date. 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 WebThe TRS Supplemental Savings Plan (SSP) is a great way to Bring More to your financial future. 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. Suite 460 A pension plan for teachers who established membership: on or Rockford, IL 61107-6827 fax:618.343.3546 These model forms are available for a flat fee. ph: 217.363.3040 However, March 1, 2022 is the first effective date for employee contributions as long as the Participation Agreement has been approved and processed by that date. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 55 West Monroe 125 (Ill.2018). ph: 815.390.7090 For example, the Employer is responsible for employment status reporting, contribution processing, and contribution limit monitoring. Your deductibles and maximum out-of-pocket WebTeachers Retirement System (TRS) TRS Plan 1. Rockford, IL 61107-6827 100-0769. Please contact Whitt Law Senior Attorney Brittany Flaherty Theis if you have any questions regarding the SSP or other TRS-related matters. 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. 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. We are now seeking legislative support to address these problems. 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. TRS indicates in the Bulletin that it will assist with the transfer of assets but not with termination of the existing plan. Since the new obligation was enacted, TRS developed 457(b) Plan to offer members and updated its internal accounting system to administer the new Plan. TRS previously directed districts to complete and return the participation agreement located on the TRS website on or before March 31, 2021. In 2018, the Illinois legislature amended the Illinois Pension Code to add a requirement that the Teachers Retirement System (TRS) provide an optional defined 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. All Rights Reserved. One very important point is for Employers that currently offer Section 457(b) plans. School Districts will be responsible for withholding member contributions and remitting them to TRS much like the traditional TRS retirement program. The SSP Employer Participation Agreement outlines the responsibilities districts will have in administering the Plan. Directions viaGoogle Maps, 2990 N Perryville Rd, Suite 4144B TRS Supplemental Savings Plan - Teachers' All Rights Reserved. www.trs.swhp.org. 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. 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. Districts will not be required to stop offering their 403(b) plans if they agree to the SSP Employer Participation Agreement. Log in to your account today to take advantage of tools and resources that will You acknowledge that your reading of this blog site does not establish an attorney-client relationship between you and the blog/website host or the law firm, or any of the attorneys with whom the host is affiliated. The Plan was then amended in October 2020. Since, under the current statutory language, TRS likely cannot require districts to agree to participate in the Plan as an Employer, there is a logistical problem that clean-up legislation generally will need to fix. If already adopted, employers are to complete an Authorized Contact form which is available on the TRS website. No. Produce an annual report on participation and the benefit. 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 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. The SSP will be implemented pursuant to the provisions of 457(b) of the Internal Revenue Code and will be optional to TRS members. Districts will largely be responsible for ensuring proper wage deductions are made and submitted to TRS and contribution limits are adhered to. 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 SSP is administered by Voya Financial. Employees may elect to participate in more than one defined contribution plan including both a 403(b) and a 457(b) plan. TRS Supplemental Savings Plan (SSP) 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. Champaign, IL 61820-3169 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. Thus, to the question of must a district approve this resolution the answer is likely no. EECU (817) 882-0800. They will also begin conducting training classes and contribution payroll testing in December 2021, according to the Bulletin. TRS Supplemental Savings Plan Hodges, Loizzi, Eisenhammer, 8/31/2024 CROWLEY ISD BENEFIT GUIDE EFFECTIVE: - 2023 - 2024 Plan Year 1 HOW TO ENROLL PG. Finally, the Bulletin also sets forth some of the Employers responsibilities under the TRS Plan. Likely, yes. 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. Further, the Agreement will be considered irrevocable while it is in-effect. 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 Ready to Implement Opt-In Elections for the Supplemental 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. Since sending out this information, however, TRS has issued an updated February 2021 Employer Bulletin. As a TRS employer, we strongly encourage you to prepare for the January launch of the new Supplemental Savings Plan administered by Voya Financial. 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. Champaign, IL 61820-3169 Anytime a district agrees to manage funds for its employees or to participate in a formal arrangement such as the SSP Plan and/or the Participating Employer Agreement there is a corresponding liability risk that attaches. Lisle, IL 60532-4311 Currently, these include the requirements that districts: Notably, these mirror the Employer obligations listed in the Participation Agreement. Offer an optional defined contribution benefit option to active TRS members who choose to participate. Overall implementation of the SSP was delayed by TRS. 2022 TRS-CARE: Care You Can Count On 2022 TRS-CARE: 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. Timely remitting contributions to the Plan, Monitoring employee compliance with contribution limits imposed under the law, and. 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. In initial information publications, TRS established that all TRS covered employers were required to adopt the pre-drafted Participation Agreement for the TRS Plan no later than March 2021; however, that date was later rescinded. No. 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, This blog/website should not be used as a substitute for seeking competent legal advice from a licensed professional attorney in your state. Directions viaGoogle Maps. WebWhat is the TRS SSP? 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. 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. 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. 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. Bring More to Your Retirement with the TRS Supplemental Likely, no. The obligation to offer an optional defined contribution plan was delegated strictly to TRS (the System). Collinsville, IL 62234-4658 Likely, this was done for operational purposes. 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. Franczek P.C. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 55 West Monroe For employees, many of the participation rules for 403(b) and 457(b) plans are similar. Help Bring More to your future retirement plans. 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. The new TRS offering will be called the However, legislative changes could be on the horizon. 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. The Bulletin provides helpful information regarding how the TRS Plan will operate and makes some important points for Employers to consider. Chicago, IL 60603-5144 Suite 400 403(b) for Active Members - Teacher Retirement System We proposed Plan Document changes to TRS to mitigate these problems, but TRS declined to make any modifications. Suite 800 New Supplemental Savings Plan Offered by Teachers Retirement Teachers Retirement Systems Supplemental Savings Plan Administration of the SSP will be the responsibility of TRS and Voya Financial of NYC. It also clarifies that the earliest an employee will be able to elect a deferral amount is January 10, 2022, which would then apply to contributions beginning on or after March 1, 2022. On February 8th, TRS issued a communication regarding the new TRS Supplemental Savings Plan (SSP). See P.L. Suite 800 Public Act 100-0769, enacted into law on August 10, 2018, requires the Teachers Retirement System to offer a supplemental savings defined contribution plan to all active TRS members. As noted above, the law requires TRS to establish this Plan and it requires that the Plan be available for all employees who want to participate. 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. TRS Supplemental Savings Plan November Update - Franczek P.C. 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. fax:630.783.3231 The TRS SSP is a 457(b) plan The TRS Board of Trustees adopted the TRS Plan document, effective October 29, 2019, and amended it on October 30, 2020. Instead, TRS apparently just reissued the Plan Document in the same form as presented last February. 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. ph: 618.343.3540 ph: 312.332.7760 Until that occurs, though, it does not appear that a district must agree to the SSP Employer Participation Agreement. Chicago, IL 60603-5144 TRS Plan 2. TRS Supplemental Savings Plan (SSP) Knowledge Base This blog/website is made available for educational purposes only. Whitt Law will provide further information to its clients as TRS issues further guidance. 510 Regency Centre H.R. ph: 630.929.3639 Teachers Retirement System of the State of Illinois Participation is limited to active TRS-eligible employees who are full-time or part-time contractual employees. 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.. 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. To meet this obligation, TRS has asked Districts to help administer the Plan by agreeing to the SSP Employer Participation Agreements, thereby, making the optional defined contribution plan available to eligible a districts employees. The TRS forms should be carefully reviewed prior to adoption, particularly with regard to employer contributions. 2023 Robbins Schwartz. Since districts are already responsible for reporting and distributing funds to TRS on behalf of members, the easiest way for TRS to administer the new, optional Plan is to have districts agree to now take on these same responsibilities for both the defined benefit plan and the defined contribution. In November 2021, TRS announced that it was prepared to implement opt-in elections for eligible existing employees. fax:217.356.3548 Under the statute, TRS not individual employers is required to do the following: The statute, however, does state that this plan shall be an optional benefit to any member who chooses to participate.