Retirements
If you are considering retiring this year, please note that you should be contacting SURS about 6-9 months in advance and fill out forms. This is to allow time for processing. Internally, you need to notify Human Resources and your dean no less than two months in advance, but more time is appreciated to allow for paperwork and discussions on replacements. When you plan to retire, please notify the Faculty Council as well because we make membership payments to Local #604, and we need to keep those records up-to-date.
You will find forms for the various plans on the SURS website along with an estimator to see what your projected monthly income would be. Please note that the lump sum Cost of Living (AAI) buyout expires June 30, 2026.
SURS Facts – Tier I Automatic Annual Increase (AAI) Buyout
The Fiscal Year 2019 budget implementation law (Public Act 100-587), signed June 4, 2018, amended the Illinois Pension Code and created provisions for a Tier I AAI Buyout. The Tier I AAI Buyout, which will be available to retiring SURS members from July 1, 2019, through June 30, 2026, provides a Tier I member with an optional lump-sum buyout payment at retirement in exchange for a permanently reduced and delayed AAI. The final election to retire with the Tier I AAI Buyout and waive the 3 percent compounded AAI is irrevocable.
Lump-Sum Buyout Payment in Exchange for Reduced and Delayed AAI
The lump-sum buyout payment is equal to 70 percent of the difference between the present value of a 3 percent compounded AAI beginning the Jan. 1 after retirement and the present value of a 1.5 percent non-compounded and delayed AAI. The delayed AAI begins the Jan. 1 following the first anniversary of the retirement date, or the Jan. 1 following age 67, whichever is later. The reduced and delayed AAI will also apply to survivor benefits that may be payable upon the member’s death.
Eligibility Requirements
To be eligible for a Tier I AAI Buyout, a member:
Must be a Tier I member (originally certified in SURS or a reciprocal system prior to Jan. 1, 2011)
Must terminate service
Must meet minimum age and service credit requirements for vesting status and apply for retirement
Age 55 with eight years of service credit
Age 62 with five years of service credit
30 years of service credit at any age
25 years of police/fire service at age 50 or 20 years of police/fire service at age 55
Must not have elected to receive the Vested Inactive Buyout (the other buyout created by Public Act 100-587)
Must not have received a SURS retirement benefit
Must not be enrolled in the SURS Retirement Savings Plan
Calculation and Payment
SURS will calculate the lump- sum buyout payment using actuarial factors. Payments will be made by SURS and will be funded through the sale of state of Illinois bonds issued for this purpose. Calculations and resulting payments will take several months. Buyout payments must be rolled over to an eligible retirement plan and will be taxable at the time of distribution from the rollover institution. Tier I AAI Buyout payments will be made until the bond proceeds are exhausted. If that occurs, the Tier I AAI Buyout will end prior to the deadline date of June 30, 2026. (from FAQs on SURS site).
Medicare and Health Insurance
If you are turning 65, whether you retire or not, you also need to sign up for Medicare through the Social Security website. If you still wish to work after 65, sign up for only Part A (it is free while you are still on the College’s or other insurance). If you are retiring, you need to decide on what insurance you want and then sign up for Parts B, C, and D during enrollment periods to avoid delays of coverage or penalties depending on your insurance decisions.