| Topic: | Insurance |
| Subtopic: | Staff Retiree Health Insurance |
| Date: | 5/31/2024 |
| Status: | Active |
- Age. Tier 1 employees are eligible at age 50 (through ERI) or age 55 (without ERI). Tier 2 employees are eligible at age 57 (through ERI) or age 62 (without ERI)
- Retirement Period. The employee must immediately begin receiving a retirement benefit from IMRF.
- Current Enrollment. An employee must be enrolled in the current health insurance program at the time of retirement.
- Length of IMRF Service. Only employment with IMRF will be recognized. Service with other IMRF employers, reciprocal service, leaves of absence, military service, out-of-state service or other non-IMRF work will not be recognized.
- Length of IMRF employment. Minimal subsidy starts at 10 years of employment. Maximum subsidy is reached at 30 years of employment.
- Percent of Subsidy. With 10 years of employment, the subsidy would be 20% (employee pays 80%); with 15 years of employment, the subsidy would be 27.5% (employee pays 72.5%); with 20 years the subsidy would be 35% (employee pays 65%). Between years 20 and 30, the subsidy increases 1.5% per year, resulting in the following schedule:
| Years | Employee Cost | IMRF Cost |
|---|---|---|
| 10-14 | 80% | 20% |
| 15-19 | 72.5% | 27.5% |
| 20 | 65% | 35% |
| 21 | 63.5% | 36.5% |
| 22 | 62% | 38% |
| 23 | 60.5% | 39.5% |
| 24 | 59% | 41% |
| 25 | 57.5% | 42.5% |
| 26 | 56% | 44% |
| 27 | 54.5% | 45.5% |
| 28 | 53% | 47% |
| 29 | 51.5% | 48.5% |
| 30 | 50% | 50% |
- Dollar Amount. Will not be used.
- To Whom the Subsidy Applies. Only retiree employee premiums. Spouse, child(ren), family coverage premiums will not be subsidized.
- Deductibility. Deductibility from the retirement check will be required. (To the extent premiums exceed the retirement benefit, the retiree will be billed.)
- Cut Off. Medicare eligibility.
- Continuing Eligibility. Subsidy ends if the retiree is eligible for another health insurance program based on their own employment (regardless of cost or benefit structure).
- Current Retirees. The subsidy program will cover employees retiring on or after January 1, 2000.
- HMO or PPO. A retiree would receive the same subsidy percentage regardless of the program in which they enroll.
- The subsidies shall begin the first of the month following approval by the Board of Trustees.