TRS - Important Notice: Payroll Deduction Program Ending
This only applies to members purchasing optional service, 2.2 upgrades, or the Early Retirement Option.
In order to comply with recent IRS guidance, the TRS Payroll Deduction Program must be discontinued. Full-time, employed members will no longer be able to use the program to pay for optional service, 2.2 upgrades, and the Early Retirement Option through payroll deduction on a pretax basis. Other tax-deferred options still remain. Please consult your tax advisor for details.
TRS will phase out the program over the next two years. Payroll Deduction Agreement forms for new enrollments must be received no later than 4:30 p.m. on May 15, 2008 at the TRS Springfield office. The program will end in June 2010; affected members will be notified by TRS.
Beginning May 15, 2008, the Illinois Teachers’ Retirement System will not longer allow participants to purchase optional service credit with pretax dollars though a payroll deduction program or PDP. This change becomes necessary due to new Internal Revenue Service regulations. TRS will continue to allow individuals to enter into PDP agreements until the close of business on May 15, 2008. Additionally, all PDPs must be paid by June 30, 2010 in order to receive pretax status. After May 15, 2008, TRS members may still purchase optional service credit with post tax dollars or convert 457 or 403B revenues to TRS service credit. For additional information, see TRS Employer Bulletin 08-03 (April 2008).
