State To Refund Retiree Health Care Money

Nov 21, 2014

Credit Brian Mackey/WUIS

The state will refund money to about 75,000 state retirees who've been paying a portion of their pensions for health insurance over the last year and a half after a court hearing in Sangamon County.
 
Judge Steven Nardulli on Friday scheduled a Dec. 18 hearing to establish how to
distribute more than $60 million to the retirees. Attorneys estimate the money
will be returned by spring.                                                     
 
Retirees began paying a percentage of their annuity under a 2012 law.
 
A state Supreme Court ruling this summer found the law unconstitutional because
promised benefits cannot be altered. The state ultimately decided not to fight
the retirees' motion to return the money.
 
Nardulli's decision comes as another Sangamon County judge ruled the state
pension overhaul approved by lawmakers last year was unconstitutional.