State Retirement System of Illinois

Bruce Rauner, Governor

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Opt Out - Financial Incentive

Special Enrollment Period November 1 – 30, 2005
Effective January 1, 2006
(Public Act 94-0109)

Effective January 1, 2006, Non-Medicare SERS Retirees who provide proof of other comprehensive medical coverage will be allowed to Opt Out of the health, dental and vision coverage provided by the State of Illinois Insurance Program (you will continue to have basic and optional life) and receive financial incentive payment of $150.00 per month.

Central Management Services will mail information and a Special Enrollment form to eligible annuitants the in October, 2005. The Special Enrollment Period is November 1 - 30, 2005 with an effective date of January 1, 2006. If you do not enroll in this Program during this Special Enrollment Period, you can enroll during the next Benefit Choice Period or when you experience a Qualifying Change in Status.

To qualify for this Financial Incentive Program, a member must be non-Medicare and prove that they have other comprehensive health coverage. If you choose to Opt Out and receive the financial incentive, you cannot enroll as a dependent of a state employed or retired spouse under the State of Illinois Group Insurance Program. Once paperwork is received, SERS Insurance Section will determine if members qualify for Financial Incentive Program.

Incentive payments will cease:

(1) The 1st of the month in which the annuitant turns age 65. (Annuitant may reapply for the incentive payment if he/she submits written proof of his/her ineligibility for Medicare)

(2) If an annuitant becomes enrolled in Medicare for any reason (age or disability)

(3) When coverage is reactivated in the health plan

If you are participating in the Financial Incentive Program, you may re-enroll in health, dental and vision coverage within 60 days of becoming Medicare primary, either due to age or disability. You may also re-enroll during Benefits Choice Period or within 60 days of a Qualifying Change in Status.

Members receiving a retirement annuity from SERS who opted out of health coverage or waived health coverage prior to January 1, 2006 are not eligible for the financial incentive. In order for these members to qualify for the financial incentive payment, the member must opt back into the health program during a Benefit Choice Period or when a Change in Status is experienced and subsequently opt back out during a Benefit Choice Period or when a Change in Status is experienced.

If you are interested in this program, please read the forthcoming information carefully or you can contact the SERS Insurance Section at 217/785-7150.

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