# 80 Ill. Adm. Code 2700.200: Section 2700.200 Definitions

> Illinois · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T80_P2700_S2700_200

## Section

- **Citation:** 80 Ill. Adm. Code 2700.200
- **Heading:** Section 2700.200 Definitions
- **Jurisdiction:** Illinois
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Illinois Administrative Code / Title 80 PUBLIC OFFICIALS AND EMPLOYEES / CHAPTER I: ILLINOIS STATE BOARD OF INVESTMENT / Part 2700 STATE (OF ILLINOIS) EMPLOYEES' DEFERRED COMPENSATION PLAN / Section 2700.200 Definitions

## Text

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.

## Nearby sections

- [80 Ill. Adm. Code 2700.200 Section 2700.200  Definitions](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T80_P2700_S2700_200.md)

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