benefits news


Information about these and other benefits is available by contacting the Benefits Center, 807 S. Wright St., Suite 480; 333-3111.

Changes in 403(b) plans


In response to recent federal legislation, the UI is announcing the following changes, effective immediately, in the tax-deferred retirement [403(b)] plan:

Frequency of Changes
The "one change per year" limitation no longer applies to 403(b) plans. It is now possible to make the following changes at any time during the year: enroll as a new participant, terminate deductions, reinstate deductions, change the percent of salary deducted, change companies or reallocate percentages between companies.

Make-up Contributions for Veterans
Employees who return from military service leave are permitted to make up their 403(b) contributions for the time they were on military leave. Under the new law, you are eligible to make up your 403(b) contributions if you: a) returned to university employment from military service leave on or after Dec. 12, 1994; and b) were making 403(b) contributions at the time you began your military service leave. To begin your "makeup" contributions you will need to contact the Benefits Center and change your current salary-reduction agreement. The amount of your "make-up" contributions will be in accordance with federal guidelines and cannot exceed the amount you would have been allowed to contribute if you had not been on military leave. Under the new legislation, make-up contributions are allowable only for those returning from leave on or after Dec. 12, 1994. The university will continue to monitor legislative activity regarding make-up contributions for those returning from leave before December 12, 1994.

For more information regarding these changes, contact the Benefits Center at . Counselors cannot offer specific investment or tax advice; however, they can answer questions about the tax-deferred retirement plan.

Rebates available for smoking-cessation programs


As part of the state's commitment to employee wellness, Central Management Systems has announced that rebates of up to $50 are now available to those who complete a smoking-cessation program after July 1, 1996. The rebate is available once each fiscal year to all state employees, retirees and dependents enrolled in any of the state's health insurance plans.

To receive the rebate, submit the following information to the CMS/Group Insurance Division, 600 Stratton Building, Springfield, Ill., 62706: a copy of the receipt for payment of the cessation program, your Social Security number, your phone number, a copy of the program certificate verifying completion and the number of sessions attended.

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Comments to: Inside Illinois Editor Doris Dahl, (217) 333-2895, d-dahl2@illinois.edu

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