Senate Bill No. 1525, also known as Public Act No. 25-120, amends the Teachers' Retirement System statutes by redefining key terms and modifying various processes. The term "Employer" in section 10-183b is revised to exclude the State Education Resource Center for members hired on or after July 1, 2025, while clarifying that it is included for those hired before this date. The bill also establishes that retirement applications become irrevocable upon submission, with benefits accruing from the first day of the month following the application. Additionally, it adjusts survivor benefits to allow designated beneficiaries to receive accumulated contributions with interest and outlines the order of entitlement in the absence of a designation. The governance structure of the Teachers' Retirement Board is updated to include the election of two retired teachers as board members, ensuring representation from both active and retired educators.

Moreover, the bill introduces provisions for health benefits for retired teachers, their spouses, and disabled dependents, contingent on Medicare participation. It establishes a cost-sharing structure for health insurance premiums, with members paying one-third and the state contributing another third. The bill also includes new language to protect collective bargaining agreements related to health insurance and mandates notification before coverage cancellation due to non-payment. Additionally, it modifies the reporting schedule for employers and outlines penalties for late submissions. The medical committee responsible for reviewing disability applications is restructured, limiting its membership to five physicians and streamlining the eligibility review process. Overall, these amendments aim to enhance the management of health benefits and retirement options for eligible members while ensuring effective governance within the Teachers' Retirement System.

Statutes affected:
Raised Bill: 10-183t
APP Joint Favorable: 10-183t
File No. 869: 10-183t
Public Act No. 25-120: 10-183t