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Plan highlights

Learn more about the State of Illinois Deferred Compensaon Plan

Having a State of Illinois Deferred Compensaon Plan account may help provide a more secure nancial

future. You receive quality investment opons, access to a local rerement plan counselor, call center support,

and planning tools that can help you beer prepare for rerement.

What is a secon 457(b) deferred compensaon program?

A number of voluntary rerement programs are dened in the Internal

Revenue Code (IRC). These include secon 457(b) programs, commonly

called 457 deferred compensaon programs. Deferred compensaon

programs allow eligible employees to save and invest before-tax and

Roth (aer-tax) dollars through voluntary paycheck contribuons,

supplemenng any exisng rerement/pension benets.

Who is eligible to parcipate?

The Plan is a voluntary rerement savings program for all State

of Illinois employees. If you are a new State of Illinois employee

and a member of the State Employees’ Rerement System (SERS),

the General Assembly Rerement System (GARS), or the Judges’

Rerement System (JRS), you will be automacally enrolled in the

Plan. If you are not a member of SERS, GRS, or JRS, you will not be

automacally enrolled in the Plan; however, you may enroll at any me.

What do I need to know about automac enrollment?

If you are automacally enrolled, 3% of your before-tax pay will be

deducted from your paycheck. You will receive addional details related

to automac enrollment directly from Empower. You may review your

account details and make changes to your account by logging in to

myillinoisdcplan.com or calling the Empower Customer Care Center

at 833-969-ILDC (833-969-4532).

Contribung to your Plan

Choose before-tax or Roth contribuons

BEFORE-TAX ROTH

When is my

contribuon

taxed?

When you take

a distribuon

When you make

the contribuon

Is my taxable

income lowered?

Yes,

contribuons

are taken

before your

taxable income

is calculated

No, contribuons are

made aer you pay

taxes on your income

Are potenal

earnings on my

contribuons

taxed when I take

a distribuon?

Yes,

withdrawals

are subject

to ordinary

income tax

No, as long as the

distribuon occurs

aer age 59½, death,

or disability and no

earlier than ve

years aer your rst

Roth contribuon

What are the advantages of before-tax savings?

With tax-deferred savings, you pay no income taxes on any

contribuons or their potenal earnings unl you withdraw the

money. This further enhances the benet of compounding —

generang returns on money that you would have paid in taxes

if those taxes had not been deferred. Any earnings are reinvested

in your account, where they have the potenal for connued

growth because they are not reduced by taxes each year.

What are the advantages of Roth savings?

Roth contribuons are made with aer-tax dollars. Roth contribuons

reduce your take-home pay because you pay taxes on any earnings

immediately rather than deferring those taxes unl you take a

distribuon. Therefore, your contribuons and any earnings are not

taxed upon distribuon. This can be benecial if you expect to be in a

higher tax bracket during rerement than in your working years.

Can I convert before-tax money into Roth savings?

The Plan allows in-plan Roth conversions, meaning you may elect to

convert all or a poron of your before-tax account balance into Roth

aer-tax dollars at any me. If you have quesons, please speak with a

tax advisor prior to making any decisions.

How much can I contribute?

You may contribute as lile as $10 or 1% of your gross pay per pay

period. The State of Illinois allows you to select either a at dollar

amount or a percentage of your pay. The maximum amount you can

elect to contribute is 75% of your pay, subject to annual IRS limits.

Visit irs.gov to nd the latest contribuon limits.

Investments

The Plan provides parcipants with a choice of investment opons,

recognizing that people have dierent levels of desire, experience, and

comfort with invesng. The Plan’s investment opons are discussed

below and on myillinoisdcplan.com. Please keep in mind that you

decide how to invest your Plan account, and neither the Plan nor the

State of Illinois is responsible for your decisions or any losses that

may occur.

Age-based investment

Here is what you get with a Target Rerement Fund:

• An age-based investment strategy designed to help you

maximize your savings over the course of your working years.

• Diversicaon across dierent asset classes through a single

investment path

• Connuous rebalancing and performance monitoring

• Fund management through rerement that automacally

adjusts to a more conservave risk level as you get older

The date in the name of the Target Rerement Fund is the assumed

date of rerement. The asset allocaon becomes more conservave

as the fund nears the target rerement date; however, the principal

value of the fund is never guaranteed. Asset allocaon and balanced

investment opons and models are subject to the risks of their

underlying investments.

Please note that if you are automacally enrolled in the Plan,

contribuons inially invested in the Auto-Enrollment Stable Return

Fund, and all future contribuons, will be transferred and invested in

the Target Rerement Fund with the year closest to when you’ll turn

age 65.

Which Target Rerement Fund is right for you?

You don’t have to choose the fund that matches the year you’ll turn

age 65 or your expected rerement year. Once you review that fund’s

mix of stocks and bonds, you can choose a fund with a later target

date if you’d prefer a more aggressive investment mix. Likewise, if you

prefer a more conservave mix, you can choose a fund with an earlier

target date. Or you may choose a fund with the year in which you

intend to rere.

OPTION 1: AGE-BASED INVESTMENT

Age-based investment opons automacally adjust the mix

of stocks, bonds, cash, and other investments over me.

Instead of choosing and managing a mix of several funds,

you can simply invest in the Target Rerement Fund closest

to the year you expect to rere or withdraw your money.

OPTION 2: BUILD YOUR OWN PORTFOLIO

To help reach the rerement desnaon you desire, you can

build your own investment strategy. The Plan oers core fund

choices to help meet your needs for today and for tomorrow.

TARGET RETIREMENT FUNDS

Target Rerement 2065 Fund Target Rerement 2060 Fund

Target Rerement 2055 Fund Target Rerement 2050 Fund

Target Rerement 2045 Fund Target Rerement 2040 Fund

Target Rerement 2035 Fund Target Rerement 2030 Fund

Target Rerement 2025 Fund Target Rerement 2020 Fund

Target Rerement Income Fund

Asset allocaon, diversicaon, and/or rebalancing do not ensure a prot

or protect against loss.

Build your own porolio

Review your investments on a regular basis to ensure they sll align

with your goals, your comfort level with risk, and when you plan

to rere.

Rollovers

Can I combine assets from my other rerement plans into my

before-tax Plan account?

Yes. By rolling your other rerement savings accounts (401(k), 403(b),

457(b), IRA, etc.) into your Plan account, you can simplify your life in

the following ways:

• Save me by only having to use one website.

• Reduce cluer with one statement.

• Enjoy the convenience of having a diversied porolio in

one place.

• Know your beneciary(ies) have the ease of one account

upon payout.

Consider all your opons and their features and fees before moving

money between accounts.

Please note: All non-457 plan assets transferred into the Plan remain

subject to an early withdrawal penalty that does not apply to 457

plan assets. In addion, 457 plan assets transferred into another plan

(IRA, 401(k), 403(b), etc.) may become subject to the early withdrawal

penalty when distributed from the new, non-457 plan. Consider all

your opons and their features and fees before moving money

between accounts.

For more informaon and/or to begin the rollover process, contact

the Empower Customer Care Center at 833-969-ILDC (833-969-4532).

Can I combine assets from my other rerement plans into my

Roth account?

Yes. You may transfer a prior employer-sponsored Roth account

into your Roth account. However, per Internal Revenue Service

(IRS) regulaons, you are not allowed to transfer Roth IRAs into

your Roth account.

Distribuons

What are my distribuon opons?

When you are eligible for a distribuon, you may:

• Leave the value of your account in the Plan unl a future date.

• Receive periodic payments, a lump-sum payment, or a paral

lump-sum payment, and change this payment type at any me.

• Roll over or transfer your funds to another eligible plan.

When can I withdraw the money from my before-tax account?

Your before-tax money may be withdrawn:

• 30 days aer separaon from employment for any reason.

• If you experience an unforeseeable emergency within the

Plan guidelines.

• If you are sll working at age 59½ and want to take an

in-service distribuon.

• Upon death (your designated beneciary(ies) will receive

your benets).

• If you have $5,000 or less in your account and have not taken a

distribuon or contributed to the Plan in the last two years, you

may take your balance as a lump sum.

Withdrawals from money rolled into the Plan are allowed at any me.

When can I withdraw the money from my Roth account on a

tax-free basis?

Your Roth distribuons are free from income taxes and penales if

you withdraw your Roth contribuons and earnings aer holding the

account for at least ve years and meet one of the following criteria:

• You are at least age 59½.

• You become disabled.

• You experience an unforeseeable emergency within the

Plan guidelines.

• Upon death (aer which your beneciary(ies) will take

the withdrawal).

A qualied distribuon is tax-free if you have reached age 59½, are

totally disabled, or upon your death and at least ve years have passed

since your rst Roth contribuon. If your distribuon is not qualied,

the earnings poron of your withdrawal will be taxable. These rules

apply to Roth distribuons only from employer-sponsored rerement

plans. Addional Plan distribuon rules apply.

Are distribuons from the Plan required?

Yes, required minimum distribuons (RMDs) from rerement programs

are mandatory at a certain age. As of January 1, 2023, the IRS generally

requires you to start taking required minimum distribuons (RMDs) at

age 73. (If you turned 72 in 2022 and delayed your rst-me RMD unl

April 1, 2023, you must take your 2022 RMD by April 1, 2023, and your

2023 RMD by December 31, 2023.)

What qualies as an unforeseeable emergency?

If you need to request a distribuon due to an unforeseeable

emergency, call the Empower Customer Care Center at 833-969-ILDC

(833-969-4532) for requirements and necessary documentaon

and forms.

STOCK INVESTMENTS CATEGORY

Non-US Company Stocks Fund Passive Non-US Stocks

US Small/Mid Company

Stocks Fund

Passive US Small and

Mid Company Stocks

US Large Company Stocks Fund

Passive US Large

Company Stocks

BOND INVESTMENT

Bond Fund

Passive Investment

Grade Bonds

STABLE VALUE INVESTMENT

Stable Return Fund Acve Capital Preservaon

1 Diversicaon and rebalancing do not ensure a prot or protect against loss.

2 Funds rolled into a governmental 457 plan from another type of plan or account may sll be subject to the 10% early withdrawal penalty if taken before age 59½.

3 Withdrawals may be subject to income tax.

4 Earnings on Roth contribuons will be taxed unless withdrawals are a qualied distribuon as dened by the IRS.

Securies, when presented, are oered and/or distributed by Empower Financial Services, Inc., Member FINRA/SIPC. EFSI is an aliate of Empower Rerement,

LLC; Empower Funds, Inc.; and registered investment adviser Empower Advisory Group, LLC. This material is for informaonal purposes only and is not intended to

provide investment, legal or tax recommendaons or advice.

Empower refers to the products and services oered by Empower Annuity Insurance Company of America and its subsidiaries, including Prudenal Rerement

Insurance and Annuity Company and Empower Rerement, LLC. This material is for informaonal purposes only and is not intended to provide investment, legal or tax

recommendaons or advice.

“EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America.

Apple and App Store are trademarks of Apple, Inc. Google Play is a trademark of Google LLC.

What happens to my money upon my death?

Your designated beneciary(ies) will receive the remaining value of

your account, if any. Your beneciary(ies) should contact Empower

to provide a cered copy of the death cercate. Your beneciary

may contact the Empower Customer Care Center to discuss the

available distribuon opons and apply for a distribuon. If no

beneciary designaon is on le, your estate will be your beneciary.

To elect or update your beneciary(ies), log in to myillinoisdcplan.com,

navigate to I want to…, and select View/edit beneciary.

Does the State of Illinois Deferred Compensaon Plan oer loans?

Yes, the Plan allows you to borrow the lesser of $50,000 or 50% of

your total account balance. The minimum loan amount is $1,000, and

you have up to ve years to repay your loan. There is a $75 originaon

fee for each loan, which is deducted from the loan proceeds, plus a

quarterly fee of $6.25. Loan payments are made through payroll as

aer-tax deducons.

To learn more, log in to your account at myillinoisdcplan.com,

click Account, then Request a Loan to nd out how much you can

borrow and to calculate the costs of taking a loan. You may also call

the Customer Care Center at 833-969-ILDC (833-969-4532) for

more informaon.

Fees

What administrave fees will I pay?

Your administrave fee is determined by your account balance. If you

have a balance greater than $6,701, you will pay an administrave

fee of $16.75 per quarter. If your account balance is $6,700 or below,

you will pay an administrave fee of 0.25% of your account balance

per quarter.

Are there any other fees I should know about?

Yes, there are investment management fees (also known as expense

raos) that vary by investment opon. These fees are deducted by

each investment opon’s management company (not by the Plan)

before the daily price or performance is calculated. Expense rao

fees are used to pay for securies trading in the underlying funds and

other management expenses. You can nd the Plan’s investment opon

expense raos on the website at myillinoisdcplan.com. For more

informaon, please refer to the fund’s prospectus.

There is also a $25 disbursement fee on all distribuons except for

required minimum distribuons and periodic payments.

Enroll in the Plan today!

Online: Visit myillinoisdcplan.com and click on Register,

then I do not have a PIN. Follow the prompts to verify your

informaon and enroll.

Phone: Contact the Empower Customer Care Center at

833-969-ILDC (833-969-4532) for assistance.

Mobile app: If you choose to enroll from your mobile phone

or tablet, download the Empower app. Search for “Empower”

in the App Store® from Apple® or on Google Play™. Click on

Set up a meeng: Contact your local rerement

plan counselor to discuss plan details and learn

more at ildcp.empowermyme.com

or scan the QR code.