Section 2700.200 Definitions

Section 2700.200  Definitions

a)         Whenever

used in the Plan, the following terms shall have the meanings set forth in this

Section unless otherwise expressly provided, and when the defined meaning is

intended, the term is capitalized:

"Account Balance" means

the bookkeeping account maintained with respect to each Participant that

reflects the value of the Deferred Compensation credited to the Participant,

including Annual Deferrals, the earnings or loss of the Investment Option (net

of Investment Option expenses) allocable to the Participant, any transfers for

the Participant's benefit, any distribution made to the Participant or the

Participant's Beneficiary, the value of any outstanding Participant Loans and

as adjusted for Loan repayments and as otherwise provided in the Plan.  If a

Participant has more than one Beneficiary at the time of the Participant's

death, then a separate Account Balance shall be maintained for each Beneficiary.

The Account Balance includes any subaccount established for rollover

contributions, Roth rollover contributions, Roth Contributions, and

plan-to-plan transfers made for a Participant, the account established for a

Beneficiary after a Participant's death, and any account or accounts

established for an alternate payee (as defined in Code section 414(p)(8).

"ACH Debit" or

"Automated Clearing House Debit" means an electronic system that

allows a payee, with approval of the payer, to initiate a debit from the

payer's bank account.

"Alternate

Retirement System" means this Plan, which is described in section 457 of

the Internal Revenue Code, when used for purposes of Code section 3121(b)(7)(F)

to exclude contractual employees from mandatory Social Security coverage.

"Annual

Deferral" means the amount of Compensation deferred in any year.

"Applicable

Dollar Amount" means the amount of Compensation allowed to be deferred in

any calendar year as established under Code section 457(e)(15)

d in section 457 of

the Internal Revenue Code, when used for purposes of Code section 3121(b)(7)(F)

to exclude contractual employees from mandatory Social Security coverage.

"Annual

Deferral" means the amount of Compensation deferred in any year.

"Applicable

Dollar Amount" means the amount of Compensation allowed to be deferred in

any calendar year as established under Code section 457(e)(15).

"Auto-Enrollment Eligible

Employee" means an Employee who, on or after July 1, 2020, becomes an

active member or Participant of a retirement system created under Article 2,

14, or 18 of the Illinois Pension Code [40 ILCS 5].

"Auto-Enrolled

Participant" means a Participant who was automatically enrolled in the

Plan and who has not made an affirmative deferral election regarding their

Deferred Compensation rate, including opting out of the Plan in accordance with

Section 2700.410.

"Auto-Enrollment Opt-Out

Period" means the 30-day period following the start date of an Employee's

employment with an Employer during which Auto-Enrollment Eligible Employees may

withdraw from participation in automatic enrollment into the Plan.

"Auto-Enrollment Withdrawal

Period" means the 90 days following the end of the Auto-Enrollment Opt-Out

Period.

"Beneficiary"

means the person, persons or legal entity entitled to receive any undistributed

Deferred Compensation that becomes payable in the event of the Participant's

death, as designated by the Participant, or provided for in accordance with the

Plan.

"Board"

means the Illinois State Board of Investment.

"Code"

means the Internal Revenue Code (26 U.S.C. 1 et seq.), as amended, or any

successor statute.

"Compensation"

means all cash Compensation for services to the State, including salary, wages,

fees, commissions, bonuses, and overtime pay, that is includable in the

Employee's gross income for the calendar year but for a Compensation reduction

election under Code section 125, 132(f), 401(k), 403(b) or 457(b)

Internal Revenue Code (26 U.S.C. 1 et seq.), as amended, or any

successor statute.

"Compensation"

means all cash Compensation for services to the State, including salary, wages,

fees, commissions, bonuses, and overtime pay, that is includable in the

Employee's gross income for the calendar year but for a Compensation reduction

election under Code section 125, 132(f), 401(k), 403(b) or 457(b).

"Custodial Account"

means the fund created under and subject to the Custodial Agreement.

"Custodial Agreement"

means the written agreement made by and between the State and the Custodian

under which the Custodial Account is maintained.

"Custodian" means a

bank, as described in section 408(n) of the Internal Revenue Code, or a person

who meets the non-bank trustee requirements in accordance with the regulations

under Code section 408(a)(2) relating to the use of non-bank trustees.

"Deferred Compensation"

means that portion of the Participant's Compensation that the Participant

defers under this Plan through either Pre-Tax Contributions and/or Roth

Contributions.

"Deferred

Compensation Account" means an account established under the Plan that is

the basis for any distribution payable to the Participant under Section

2700.730, including any subaccounts under the Deferred Compensation Account.

"Delayed

Distribution Date" means the date a Participant elects to make a decision

regarding distribution of the Participant's account.

"Department"

means the Department of Central Management Services of the State of Illinois.

"Designated

Beneficiary" means an individual designated as a beneficiary by the

Participant in accordance with Section 2700.415.

"Eligible

Designated Beneficiary" means a Designated Beneficiary who is the

Participant's surviving spouse, the Participant's child who has not reached the

age of majority, a chronically ill person, a disabled person, or any other

person who is not more than ten years younger than the Participant, as defined

in Code section 401(a)(9)(E)(ii)

he

Participant in accordance with Section 2700.415.

"Eligible

Designated Beneficiary" means a Designated Beneficiary who is the

Participant's surviving spouse, the Participant's child who has not reached the

age of majority, a chronically ill person, a disabled person, or any other

person who is not more than ten years younger than the Participant, as defined

in Code section 401(a)(9)(E)(ii).

"Employee"

means

any person, including a person elected, appointed or under contract,

receiving Compensation from the

State for personal services rendered,

including salaried persons

[40 ILCS 5/24-102],

except that any person under contract with the Employer shall be eligible only

to the extent the Internal Revenue Service or the Illinois Department of

Revenue shall permit or approve.

"Employer"

means the State of Illinois, including all officers, boards, commissions and

agencies created by the Illinois Constitution, whether in the executive,

legislative or judicial branch, all officers, departments, boards, commissions,

agencies, institutions, authorities, universities, bodies politic and corporate

of the State; administrative units or corporate outgrowths of the State

government that are created by or pursuant to statute other than units of local

government and their officers, school districts and boards of election

commissioners; and all administrative units and corporate outgrowths of these

entities as may be created by executive order of the Governor.

"Hardship

Committee" means a committee that is responsible for determining whether

any Participant has suffered an Unforeseeable Emergency and is entitled to a

distribution as provided under Section 2700.740, as well as determining Loan

claims appeals as provided under Section 2700.770.

"Includable

Compensation" means the Employee's actual wages in box 1 of Form W-2 for a

year for services to the State, as defined in Code section 457(e)(5)

esponsible for determining whether

any Participant has suffered an Unforeseeable Emergency and is entitled to a

distribution as provided under Section 2700.740, as well as determining Loan

claims appeals as provided under Section 2700.770.

"Includable

Compensation" means the Employee's actual wages in box 1 of Form W-2 for a

year for services to the State, as defined in Code section 457(e)(5).

"Investment

Option" means any and all investment vehicles established by the Board for

the investment of Deferred Compensation.

"Loan" means a

Participant loan described in Section 2700.770.

"Minor"

means a Beneficiary who is under age 18 at the time a benefit under this Plan

becomes payable to him or her, unless Illinois law defines another age.

"Minority

Option" means an Investment Option with a minority-owned firm that has

documented State certification.

"Normal

Retirement Age" means age 70½ unless the Participant has elected an

alternative Normal Retirement Age by written instrument delivered to the

Department within 30 days after the Participant's Severance of Employment as

provided in Section 2700.510.  A Participant's Normal Retirement Age

determines:

the latest

time when benefits may commence under this Plan (unless the Participant

continues employment after Normal Retirement Age); and

the period

during which a Participant may utilize the 3-year Catch-up provision of Section

2700.440.

For purposes

of clarification: Normal Retirement Age for purposes of the catch-up provision

of Section 2700.440 can be no later than age 70½, and benefits must commence no

later than the time prescribed in Code section 401(a)(9) (notwithstanding the

election of any alternative retirement age to the contrary).

"Participant"

means any Employee who has enrolled in this Plan as provided in Section

2700.410 and has not had a complete distribution of their Deferred Compensation

Account

n

of Section 2700.440 can be no later than age 70½, and benefits must commence no

later than the time prescribed in Code section 401(a)(9) (notwithstanding the

election of any alternative retirement age to the contrary).

"Participant"

means any Employee who has enrolled in this Plan as provided in Section

2700.410 and has not had a complete distribution of their Deferred Compensation

Account.

"Pay

Agency" means any State or State-Related (e.g., State universities,

constitutional offices) agency, including Employers, responsible for

calculating, deducting, and applying retirement plan deferral amounts for

Employees' paychecks.  A Pay Agency is also any State or State-Related agency

responsible for the communication and/or transmission of retirement plan

deferral amounts to other Employers.

"Pay

Period" means an accounting period established by the State of Illinois for measuring and paying Compensation earned by Employees.  A Pay Period may be

monthly, semi-monthly, bi-weekly or another period determined by the Employer.

"Plan"

means the State (of Illinois) Employees' Deferred Compensation Plan, as set

forth in this Part.

"Plan

Year" shall be the tax year as established by the Comptroller for payroll

purposes.

"Pre-Tax

Contributions" means a Participant's Deferred Compensation that is not

includible in the Participant's gross income at the time deferred.  A

Participant's Pre-Tax Contributions will be separately accounted for, including

gain or loss attributable to those Pre-Tax Contributions.

"Prior

Plan I" means the State Employees' Deferred Compensation Plan approved and

adopted by the Board on September 10, 1976.

"Prior

Plan II" means the State Employees' Deferred Compensation Plan approved

and adopted by the Board on May 18, 1979.

"Prior

Plan III" means the State Employees' Deferred Compensation Plan (80 Ill.

Adm. Code 2700) adopted at 7 Ill. Reg. 10845, effective August

31, 1983

r

Plan I" means the State Employees' Deferred Compensation Plan approved and

adopted by the Board on September 10, 1976.

"Prior

Plan II" means the State Employees' Deferred Compensation Plan approved

and adopted by the Board on May 18, 1979.

"Prior

Plan III" means the State Employees' Deferred Compensation Plan (80 Ill.

Adm. Code 2700) adopted at 7 Ill. Reg. 10845, effective August

31, 1983.

"Recordkeeper"

means the non-fiduciary, non-discretionary entity that, under contract with the

Board, performs functions as directed by the Board or Department, as

appropriate, as described in this Part, in its contract with the Board, and as

described in any other written agreements with the Board and/or the Department.

"Roth

Contributions" means a Participant's Deferred Compensation that is

includible in the Participant's gross income at the time deferred.  A

Participant's Roth Contributions will be separately accounted for, including

gain or loss attributable to those Roth Contributions.

"Severance

from Employment" means the permanent severance of the Participant's

employment relationship with the Employer by means of:

retirement;

discharge;

resignation, provided seniority or continuous service is interrupted;

layoff, unless there is a designated date for return to paid status;

expiration or non-renewal of contract, appointment or term of office;

nonreelection; or

other form of

permanent severance as may be provided by appropriate law, contract or rules

and regulations.

For the

purposes of this definition, neither a break in State service for a period of

less than 30 days nor transfers among various branches of State Government

shall be considered a Severance from Employment.

An

independent contractor is considered to sever service with the Employer upon

the expiration of all contracts under which services are performed for the

Employer, if the expiration constitutes a good faith and complete termination

of the contractual relationship.

"State"

means State of Illinois

fers among various branches of State Government

shall be considered a Severance from Employment.

An

independent contractor is considered to sever service with the Employer upon

the expiration of all contracts under which services are performed for the

Employer, if the expiration constitutes a good faith and complete termination

of the contractual relationship.

"State"

means State of Illinois.

"Unforeseeable

Emergency" means severe financial hardship to the Participant resulting

from an unexpected illness or accident of the Participant or of a dependent of

the Participant, loss of the Participant's property due to casualty, or other

similar extraordinary and unforeseeable circumstances arising as a result of

events beyond the control of the Participant.

"Valuation

Date" means the date on which an Investment Option is valued and earnings

and/or losses are allocated to Participants' Deferred Compensation Accounts.

There shall be a Valuation Date at least once a month and, if practical at the

discretion of the Board, more frequent Valuation Dates to reflect, as closely

as possible, the earnings and/or losses of any particular Deferred Compensation

Account from the time Compensation is deferred and invested in various

Investment Options until it is eventually distributed according to the Plan.

It may also include each business day/the last day of the calendar month/the

last day of the calendar quarter/each December 31.

b)         Except when otherwise indicated by context, any masculine

terminology shall also include the feminine and neuter and vice-versa, and the

definition of any terms in the singular may also include the plural.