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Court Orders End to State Retiree Percentage-of-Annuity Insurance Premiums

Court Orders End to State Retiree Percentage-of-Annuity Insurance Premiums

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Posted: 
August 29, 2014
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On August 28, 2014, Sangamon County Circuit Court Judge Steven Nardulli ordered the state to stop deducting monthly percentage-of-annuity health care premiums from annuity checks of state retirees and survivors enrolled in the State of Illinois Group Health Insurance Plan. This decision brings the Kanerva vs. Weems (No. 115811) case, filed last July by several state employee groups seeking to protect their premium-free state health insurance, one step closer to resolution.

In July of 2014, the Illinois Supreme Court ruled that state retiree health care benefits are protected by the state constitution. The case then reverted to the Circuit Court for further proceedings.

SURS retirees and survivors enrolled in the State of Illinois Group Health Insurance Plan were required to pay 1% (retirees and survivors with primary coverage under Medicare) or 2% (retirees and survivors with primary coverage under the state program) of their annuity for health insurance.

Beginning October 1, 2014, SURS will no longer deduct percentage-of-annuity health insurance premiums from annuitants’ checks. September checks will show the deductions, as those checks were processed prior to the ruling. (SURS Member Website will not reflect the change in the October payment until system changes are applied.)

SURS has no information at this time concerning when or how the state will repay the retiree insurance premiums deducted since July 1, 2013.

SURS will continue to update our website with all information as it becomes available.