State Retirement System of Illinois

Bruce Rauner, Governor

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   Retiree Health Insurance Ruling   

Supreme Court Enters Retiree Health Insurance Ruling

On July 3, 2014, the Illinois Supreme Court issued an opinion in the retiree health insurance premium case.

The Circuit Court of Sangamon County had originally dismissed the case on the grounds that insurance premium subsidies for retiree health insurance are not a benefit of membership in a retirement system.

The Supreme Court disagreed and determined the Circuit Court should not have dismissed the case. The Supreme Court has sent the case back to the Circuit Court for reconsideration.

The disputed health insurance premium increases will continue to be held in escrow until the final determination of the case is made. As this case has not yet been decided, SERS must continue to deduct retiree health insurance premiums until the courts advise us otherwise.

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