The State Universities Retirement System is one of the most consequential financial decisions an SIU faculty or staff member will ever make. You get one choice. It is permanent. We help you get it right.
When you become eligible for SURS, you have six months to elect your retirement plan. Most new faculty and staff receive a packet of information and are expected to make one of the most important financial decisions of their career with little to no guidance.
If you do not choose within that six-month window, you are automatically and permanently enrolled in the Traditional Pension Plan. That default may or may not align with your financial situation.
The right plan depends on your career trajectory, salary level, spouse's income, how long you plan to stay at a SURS-covered institution, and your broader retirement picture. That is exactly the conversation we are built for.
Each of the three SURS plans has fundamentally different structures for lifetime income, survivor benefits, and separation refunds. The difference between plans, for a faculty member with a 25-year career, can amount to tens of thousands of dollars in retirement income.
"This is not a decision to make alone, or with an advisor who has never worked with SURS."
SURS offers three core retirement plans. Two are defined benefit plans that provide guaranteed lifetime income based on a formula. One is a defined contribution plan where you control the investments. Here is what you need to know about each.
The original SURS plan, available since the system's founding. Provides guaranteed lifetime monthly retirement income based on your salary and years of service.
Includes a survivor benefit at no additional cost to your retirement benefit. The separation refund, which is what you receive if you leave SURS before retirement, is less generous than the Portable plan.
If you do not make an election within six months of becoming eligible, this is the plan you are permanently enrolled in by default.
Similar in structure to the Traditional plan, providing guaranteed lifetime monthly retirement income. The key difference is flexibility if you leave the system.
Offers a significantly more generous separation refund if you leave SURS before retirement. The tradeoff is that survivor benefits require a reduction to your retirement and death benefits, unlike the Traditional plan.
Designed for members who want defined benefit security but with greater portability.
A defined contribution plan where both you and the State of Illinois make contributions to an account in your name. The state contributes 7.6% of your salary. You control how the account is invested.
Investment options include the SURS Lifetime Income Strategy (LIS), a professionally managed target-date portfolio, or a self-directed portfolio from SURS core fund options.
The RSP uses an IRS annual earnings cap. Faculty whose salary approaches or exceeds this limit may find the RSP advantageous, as contributions continue on amounts the other plans cap.
Plan information sourced from the State Universities Retirement System of Illinois. For complete plan details, contribution rates, and benefit calculations, visit surs.org. Plan elections are governed by the Illinois Pension Code.
On January 5, 2025, President Biden signed the Social Security Fairness Act into law, repealing both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
For SURS members, this is one of the most significant retirement planning developments in decades. SURS-covered employment is not covered by Social Security, meaning university employees do not pay Social Security taxes through their SURS position. Under the old rules, faculty who had earned Social Security benefits from other employment had those benefits reduced or eliminated by WEP and GPO.
Those reductions are now gone, effective for benefits payable January 2024 and later. Members previously affected may be entitled to retroactive payments.
Source: Social Security Administration. The Social Security Fairness Act (H.R. 82) was signed January 5, 2025. Visit ssa.gov for details on benefit adjustments and retroactive payments.
Evaluating the three-plan election before your six-month window closes. We analyze your career goals, salary trajectory, and family situation to identify the right fit.
Integrating SURS projections into your complete financial plan, including 403(b) supplement strategy, Social Security coordination, and income gap analysis.
Calculating your optimal retirement date, survivor benefit elections, Social Security claiming strategy, and how the Social Security Fairness Act affects your income picture.
Navigating the Social Security Fairness Act, evaluating whether retroactive payments are owed to you, and coordinating your SURS annuity with your broader retirement income.
The State Universities Retirement System offers three retirement plans: the Traditional Pension Plan, the Portable Pension Plan, and the Retirement Savings Plan (RSP). The Traditional and Portable plans are defined benefit plans providing guaranteed monthly income in retirement. The RSP is a defined contribution plan where the member controls how contributions are invested.
Yes. The SURS plan election is a one-time, irrevocable decision. Once you elect a plan, or are defaulted into the Traditional plan after six months of eligibility, the decision cannot be changed. This makes getting qualified guidance before the window closes critically important.
If a new SURS member does not elect a plan within six months of certification, they are automatically and permanently enrolled in the Traditional Pension Plan. That default may or may not be the right choice depending on your individual situation.
Yes. SURS-covered employment is not covered by Social Security, so SURS members do not pay Social Security taxes through their university position. Many faculty have Social Security earnings from outside employment. As of January 2025, the Windfall Elimination Provision and Government Pension Offset have been repealed, meaning those benefits are no longer reduced because of your SURS pension.
Both are defined benefit plans providing guaranteed lifetime monthly income. The key difference is the separation refund: the Portable plan provides a more generous refund if you leave SURS before retirement. The tradeoff is that survivor benefits under the Portable plan require a reduction to your retirement and death benefits, while the Traditional plan includes a survivor benefit at no additional cost.
The SURS Retirement Savings Plan (RSP) is a defined contribution plan where the State of Illinois contributes 7.6% of your salary and you control how funds are invested. Faculty with higher salaries that may approach IRS annual earnings limits, or those who prioritize investment control and portability, may find the RSP advantageous compared to the defined benefit plans.
Schedule a free 30-minute consultation with Mark Chalem, CFP® to discuss your SURS plan, Social Security coordination, and how your university benefits fit into your complete financial picture. No obligation. No pressure. Just clarity.