Section 1600.440  Voluntary Deductions from Annuity Payments

Purpose.  This Section implements procedures for voluntary deductions from annuities and disability benefits as authorized under Section 4 of the State Salary and Annuity Withholding Act (SSAWA) [5 ILCS 365/4] and Section 4.5 of the Voluntary Payroll Deductions Act of 1983 (VPDA) [5 ILCS 340/4.5].  The SSAWA allows a SURS annuitant receiving an annuity or disability benefit to authorize the withholding of a portion of his or her annuity or disability benefit for purposes enumerated in Section 4(1) through (13) of the SSAWA.  In furtherance of Section 4(12) of the SSAWA, the VPDA allows a SURS annuitant receiving an annuity or disability benefit under Article 15 of the Code to authorize the withholding of a portion of his or her annuity or disability benefit for contribution to a maximum of four organizations described in Section 3(b) and (c) of the VPDA.  Upon written request of the annuitant, SURS may deduct from the annuity or disability benefit of the annuitant the amount specified in the voluntary deduction authorization to the entity designated by the annuitant. 

a)         Written Authorizations.  The written request for voluntary annuity or disability benefit deductions shall be made by filling out and signing a SURS-prepared voluntary deduction authorization form, by written correspondence from the annuitant, or by a voluntary deduction authorization form prepared by an organization or entity authorized to solicit annuitants under the SSAWA and VPDA.

b)         Form of Authorization.  The voluntary deduction authorization form or correspondence shall contain the following to be an effective authorization for voluntary deductions:

1)         one or more of the following purposes authorized under the SSAWA, including the name and address of the organization or entity to receive the deduction:

A)        for purchase of United States Savings Bonds;

B)        subject to restrictions under the SSAWA, for payment of premiums on: life or accident and health insurance, as defined in Section 4 of the Illinois Insurance Code [215 ILCS 5/4]; policies of automobile insurance as defined in Section 143.13 of the Illinois Insurance Code; and personal multiperil coverages commonly known as homeowner's insurance;

C)        for payment to any labor organization designated by the employee;

D)        for payment of dues to any association the membership of which consists of State employees and former State employees;

E)        for deposit in any credit union in which State employees are within the field of membership as a result of their employment;

F)         for payment to or for the benefit of an institution of higher education by an employee of that institution;

G)        for payment of parking fees at the underground facility located south of the William G. Stratton State Office Building in Springfield, the parking ramp located at 401 South College Street, west of the William G. Stratton State Office Building in Springfield, or the parking facilities located on the Urbana-Champaign campus of the University of Illinois;

H)        for voluntary payment to the State of Illinois of amounts then due and payable to the State;

I)         for investment purchases made as a participant in College Savings Programs established pursuant to Section 30-15.8a of the School Code [105 ILCS 5/30-15.8a];

J)         for voluntary payment to the Illinois Department of Revenue of amounts due or to become due under the Illinois Income Tax Act [35 ILCS 5];

K)        for payment of optional contributions to a retirement system subject to the provisions of the Code;

L)        for contributions to organizations found qualified by the State Comptroller under the requirements set forth in the VPDA (this purpose must be accompanied by a deduction code issued by the State Comptroller);

M)       for payment of fringe benefit contributions to employee benefit trust funds; (Section 4 of the SSAWA)

2)         the amount to be withheld from the annuity or disability benefit of the annuitant for each designated entity;

3)         the expiration date of the authorization, if applicable;

4)         the annuitant's current mailing address; and

5)         the annuitant's signature.

c)         Effective Date of Authorization.  The voluntary deduction authorization shall be effective for annuities and disability benefits according to the following schedule.   An authorization is deemed submitted when it is received and date stamped by SURS.

1)         If a voluntary deduction authorization is submitted on or before the SURS monthly benefit processing date, the authorization shall be effective from the first day of the next calendar month for annuities and from the last day of the same calendar month for disability benefits.

2)         If a voluntary deduction authorization is submitted after the scheduled SURS monthly benefit processing date, the authorization shall be effective from the first day of the calendar month following the next calendar month for annuities and from the last day of the next calendar month for disability benefits.

d)         Deduction Increases.  The annuitant may authorize in writing increases in amounts withheld by voluntary deduction without filing a new deduction authorization form (e.g., on account of increases in union dues).  However, prior to an increase in withholding taking effect, written notice shall be given to SURS and to each affected annuitant by the entity to receive the increase.

e)         Termination and Reinstatement.  Effective voluntary deduction authorizations may be terminated at any time by the annuitant by written request.  Absent a written request for termination, an effective voluntary deduction authorization is automatically terminated upon reaching the date of expiration as indicated on the written request for voluntary deductions.  If no expiration date is indicated, then the voluntary deduction authorization continues to be effective for each recurring annuity or disability benefit pay period until the annuity or disability benefit ceases.  A reinstatement of a deduction subsequent to its termination as a result of a request for termination, expiration, or cessation of annuity or benefit must be authorized under a new voluntary deduction authorization as prescribed under subsection (b).  However, a temporary suspension (such as a suspension due to the lack of a valid address verification) of an annuity or disability benefit, followed by its recommencement, does not require a new voluntary deduction authorization. 

f)         Deduction Limits

1)         In addition to the requirements under the SSAWA and VPDA, any organization or entity for which a deduction authorization is submitted must have received deduction authorizations from at least 50 SURS annuitants before the monthly benefit processing date of the previous month.

2)         Once SURS has received effective deduction authorizations for withholding on behalf of four organizations or entities that may receive deductions for any of the purposes stated under subsections (b)(1)(A) through (b)(1)(K) and (b)(1)(M) of this Section, SURS shall accept no further deduction authorization forms for those organizations or entities from that annuitant, unless a previously effective deduction authorization is terminated by the annuitant (or by the expiration of the stated term of the prior authorization).

3)         Once SURS has received effective deduction authorizations for withholding on behalf of four qualified organizations described under Section 3(b) and (c) of the VPDA for the purpose stated under subsection (b)(1)(L) of this Section, SURS shall accept no further deduction authorization forms for those organizations from that annuitant, unless a previously effective deduction authorization is terminated by the annuitant (or by the expiration of the stated term of the prior authorization).

(Source:  Amended at 32 Ill. Reg. 16515, effective September 25, 2008)