Illinois outlines life insurance options for state employees and retirees

The State Employees Retirement System (SERS) of Illinois held a vital webinar on April 24, 2025, aimed at guiding state employees through the complexities of retirement planning. The session, titled "Countdown to Retirement Tier 1," provided essential information on life insurance options, Social Security, estate planning, and financial management for those nearing retirement.

One of the key topics discussed was the life insurance benefits available to state employees. For those under the age of 60, the basic life insurance coverage is equivalent to one year’s salary, with options to purchase additional coverage up to eight times their salary. This means that an employee who has a salary of $200,000 could secure a total of $250,000 in life insurance. However, for retirees aged 60 and above, the basic coverage drops to $5,000, with the maximum purchase option reduced to $20,000.

The webinar also highlighted the NCPRS (Public Employee Retirement Systems) voluntary group life insurance plan, which is available only to active employees. This plan allows for a decreasing term life policy that can be carried into retirement if already enrolled while employed. The cost is a manageable $16 per month, which can be deducted directly from pension checks.

In addition to life insurance, the importance of contacting the Social Security Administration was emphasized. Employees are encouraged to apply for benefits four months prior to their desired payment start date. Resources for estate planning and financial advising were also shared, underscoring the need for comprehensive planning as employees transition into retirement.

The meeting concluded with a list of important contacts and resources, including phone numbers and websites for SERS, Social Security, and deferred compensation services. This information aims to empower state employees with the tools they need to navigate their retirement effectively.

As Illinois state employees prepare for retirement, the insights shared during this webinar are crucial for ensuring they make informed decisions that will impact their financial security and quality of life in their later years.