SERS outlines disability benefits and insurance eligibility for state employees

State Employees Retirement System (SERS) officials provided crucial insights during the Countdown to Retirement Tier 2 Webinar held on April 24, 2025, aimed at guiding Illinois state employees through the complexities of retirement benefits and disability eligibility.

A key takeaway from the session was the eligibility criteria for non-occupational disability benefits. Participants learned that to qualify, employees must submit the necessary forms to SERS and have a minimum of ten years of service credit. For Tier 1 and Tier 2 members, those who become disabled after age 60 can receive benefits for up to five years, with the amount capped at 50% of their final average compensation. Importantly, while receiving these benefits, employees continue to accrue service credit, ensuring they do not lose out on pension contributions during their time away from work.

The webinar also addressed the implications of resigning from an agency while on disability. Members must be established on SERS disability benefits before resigning to maintain eligibility. This stipulation is crucial for employees who may be pressured to resign due to their inability to return to work.

Insurance eligibility was another significant topic. Employees must be vested with SERS and collecting a monthly annuity to qualify for state insurance, which requires a minimum of ten years of service. The session clarified that while pension benefits can be accrued through reciprocal systems, insurance eligibility does not extend to all systems, notably excluding IMRF.

Retirees with 20 or more years of service can receive health insurance at no cost, while those with fewer years will incur a premium based on their service duration. The importance of understanding these insurance options was emphasized, particularly regarding the timing of retirement and the transition to retiree insurance.

As the meeting concluded, SERS representatives encouraged participants to consult their HR departments for personalized guidance on retirement dates and insurance coverage. The information shared during the webinar is vital for state employees planning their retirement, ensuring they are well-informed about their benefits and eligibility requirements.