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 the definition of "Public school" is updated to clarify that the Center applies only to members hired before that date. The bill also makes retirement applications irrevocable upon submission and establishes that benefits will begin accruing the month after the application is submitted. Additionally, it adjusts survivor benefits, allowing designated beneficiaries to receive accumulated contributions with interest, and outlines the order of entitlement in the absence of a designation.

The bill further enhances the governance structure of the Teachers' Retirement Board by requiring the election of two retired teachers as members and mandating the Governor to appoint a public member from municipal leadership. It introduces provisions for health benefits for retired members and their dependents, contingent upon Medicare participation, and ensures that collective bargaining agreements related to health insurance premiums are protected. The bill also establishes a medical committee to review disability allowance applications and modifies the reporting schedule for employers regarding contributions. Notably, it includes new language that mandates notification to the Teachers' Retirement Board before any cancellation of coverage due to non-payment and creates a separate account within the Teachers' Retirement Fund for managing health insurance premiums for retired teachers.

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