Section 367j of the Illinois Insurance Code provides for continued coverage of IMRF members and qualified beneficiaries. This section was written so that continued insurance coverage is available only if benefits are payable by IMRF. Unless you are certain of eligibility, you may wish to verify through IMRF whether the member is eligible for retirement benefits, disability benefits, or surviving spouse benefits. Eligibility for continued IMRF benefits can be verified in writing if desired. IMRF will not notify an employer’s insurance carrier of eligibility.
For continued coverage under Section 367j, IMRF will remit premiums deducted from benefit payments only to employers because the retiree, disabled member, or surviving spouse will be covered under the employer’s group insurance policy. The employer is responsible for remitting all premiums to the insurance carrier. The employer will know immediately when premiums, carriers, or coverage change.
IMRF will deduct premiums and remit them to employers using the following guidelines only:
IMRF benefit payments must be greater than the premiums. If premiums increase faster than IMRF benefits, premium deductions by IMRF will cease.
IMRF will not deduct premiums from temporary disability benefit payments because the eligibility for each payment is determined on a month by month basis; benefits fluctuate as workers’ compensation and Social Security benefits are considered, and the benefit may be paid for a short period of time.
IMRF will deduct premiums from recurring benefit payments (the regular and usual amount). Please note: a member’s or surviving spouse’s first recurring benefit payment may represent more than one month of IMRF benefits. However, IMRF will deduct only one month’s premium for health insurance from that payment.
IMRF will not deduct more than one month’s premium. It will not make up several months of premiums. It is the benefit recipient’s responsibility to make arrangements to pay premiums until such time as IMRF can begin remitting payments.
If there are gaps in coverage, IMRF will not bridge the gap by paying premiums. For example, if a retiree dies, IMRF will terminate paying premiums. If subsequently a surviving spouse is eligible for continued coverage, IMRF will remit premiums on behalf of the surviving spouse only after the spouse enrolls in the insurance program.
Disabled
or retired members and employers will be required to complete IMRF
Form 7.10 ”Health Insurance Continuation through Employer Premium
Deduction Authorization,” (Exhibit
5J).
Download and Print Form 7.10
After
IMRF deducts the premiums, it will remit them to the employer. IMRF
will mail the employer a check, or the employer can elect to have
the premium payment electronically deposited into its checking or
savings account. The employer would use IMRF Form 3.01, Change Account
for Electronic Payments from IMRF," (Exhibit 5P) to advise IMRF
of the account information or to change account information.
Download and Print Form 3.01