Opt Out - Financial Incentive

SERS Retirees ONLY

(Public Act 94-0109)

Effective January 1, 2006, Non-Medicare SERS Retirees who provide proof of other comprehensive medical coverage will be allowed to Opt Out of the health, dental and vision coverage provided by the State of Illinois Insurance Program and receive financial incentive payment of $150.00 per month (you will continue to have your basic life coverage, as well as any optional life coverage in which you are currently enrolled).

To qualify for this Financial Incentive Program, a retiree must be non-Medicare and able to provide proof of enrollment in another health benefit plan, either comprehensive major medical or comprehensive managed care, from a source other than the Illinois Department of Central Management Services (DCMS).  Other health programs under DCMS include the Local Government Health Plan, Teachers’ Retirement Insurance Program and the College Insurance Program.  If you choose to Opt Out and receive the financial incentive, you cannot enroll as a dependent of a state employed or retired spouse under the State of Illinois Group Insurance Program. 

Incentive payments will cease: 

(1)  The 1^st day of the month in which the annuitant turns age 65.  (Annuitant may reapply for the incentive payment if he/she submits written proof of Medicare ineligibility)

(2)  The 1^st day of the month an annuitant becomes enrolled in Medicare for any reason (age or disability)

(3)  The 1^st day of the month following an annuitant reactivating coverage in the state’s health plan

If you elect to opt out of the state health, dental and vision coverage during Benefit Choice or due to a Qualifying Change in Status and receive a financial incentive, you may re-enroll within 60 days of becoming Medicare primary, either due to age or disability.  You may also re-enroll during Benefits Choice Period or within 60 days of experiencing a Qualifying Change in Status, such as divorce, marriage or loss of other coverage.

Members who have opted out of health coverage or who have waived health coverage are not eligible for the financial incentive.  If you are currently not participating in the State of Illinois Insurance Program because you have waived or opted out of the coverage and would like to qualify for the financial incentive payment, you must first elect to opt back in to the state’s health program during a Benefit Choice Period or upon experiencing a Qualifying Change in Status.  Then, upon re-electing to opt out of the coverage (either during a Benefit Choice Period or upon experiencing a Qualifying Change in Status), you would become eligible for the financial incentive. 

If you are interested in this program, please complete the forms provided on this website and return to The State Employees Retirement System, 2101 S Veterans Parkway, Springfield, IL  62704.  If you have questions, contact your SERS Group Insurance Representative.