On June 27, 2014, the Illinois Department of Central Management Services (CMS) filed an emergency administrative rule amending section 2200.520 of the Illinois Administrative Code, entitled “State Employees Group Insurance Retiree Premium Contributions – Percentage of Annuity.” The emergency rule increased the percentage of annuity to be paid for State of Illinois retireee and survivor health insurance coverage from 1% (retirees and survivors with primary coverage under Medicare) or 2% (retirees and survivors with primary coverage under the state program) to 2% or 4% respectively. These increased premiums were reflected in the July and August annuity payments made by SURS.
On August 11, 2014, CMS withdrew the emergency rule. As a result, SURS will revert to the premiums required under the prior administrative rule. Thus, effective with the September 1, 2014 annuity payments, the percentage of annuity to be paid for State of Illinois retiree and survivor health insurance will revert to 1% or 2%, as the case may be.
SURS will continue to deduct insurance premiums under this rule until further direction regarding the Kanerva case is received from the Sangamon County Circuit Court.