51.1-1400 - Health insurance credits for retired state employees.
§ 51.1-1400. Health insurance credits for retired state employees.
A. The Commonwealth shall provide a credit toward the cost of healthinsurance coverage for any former state employee, as defined in § 2.2-2818,who retired under the Virginia Retirement System, State Police Officers'Retirement System, Judicial Retirement System, Virginia Law Officers'Retirement System, or any retirement system authorized pursuant to §51.1-126, 51.1-126.1, 51.1-126.3, 51.1-126.4, 51.1-126.5, or 51.1-126.7 andwho (i) rendered at least 15 years of total creditable service under theRetirement System or (ii) rendered service as a temporary employee of theGeneral Assembly in 1972 and became a member of the retirement system from1972 to 1985 immediately following such temporary service. The amount of eachmonthly health insurance credit payable under this section shall be $4 peryear of creditable service, which amount shall be credited monthly to anyretired state employee participating in the state retiree health benefitsprogram pursuant to § 51.1-1405 or an alternative personal health insuranceplan as provided herein. However, such credit shall not exceed the healthinsurance premium for retiree-only coverage as provided under suchalternative personal health insurance plan. Any (i) employee participantpursuant to § 51.1-126, 51.1-126.1, 51.1-126.3, 51.1-126.4, 51.1-126.5, or51.1-126.7 receiving long-term disability, or (ii) retired state employeeretired under the provisions of § 51.1-156 or 51.1-307, or (iii) anyparticipating employee receiving long-term disability pursuant to § 51.1-1112or 51.1-1123 shall receive a maximum monthly credit which is the greater of(i) $120, (ii) $4 per year for each year of creditable service at the time ofdisability retirement, or (iii) $4 per year for each year of creditableservice at the time of eligibility for long-term disability. Any personincluded in the membership of a retirement system provided by Chapter 1 (§51.1-124.1 et seq.), 2 (§ 51.1-200 et seq.), 2.1 (§ 51.1-211 et seq.), or 3(§ 51.1-300 et seq.) of this title who elects to defer his retirementpursuant to subsection C of § 51.1-153, subsection C of § 51.1-205 orsubsection C of § 51.1-305 shall be entitled to receive the allowable creditprovided by this section on the effective date of his retirement.
B. For those retired state employees:
1. Participating in the state retiree health benefits program, such creditshall be applied to the monthly premium deducted from benefits payable toretired state employees in accordance with Chapters 1 (§ 51.1-124.1 et seq.),2 (§ 51.1-200 et seq.), 2.1 (§ 51.1-211 et seq.), and 3 (§ 51.1-300 et seq.)of this title. In the event that either no benefit is payable or the benefitpayable is insufficient to deduct the entire health care premium, the paymentof the credit shall be determined in the manner prescribed by the VirginiaRetirement System. Eligibility for the credit shall be determined in a mannerprescribed by the Virginia Retirement System.
2. Not electing or eligible to participate in the state retiree healthbenefits program and who purchase an alternative personal health insurancepolicy from a carrier or organization of his own choosing, such retireesshall be eligible to receive a credit in the amount specified in subsectionA. Eligibility for the credit and payment for the credit shall be determinedin a manner prescribed by the Virginia Retirement System.
C. Any person included in the membership of a retirement system provided byChapter 1 (§ 51.1-124.1 et seq.), 2 (§ 51.1-200 et seq.), 2.1 (§ 51.1-211 etseq.), or 3 (§ 51.1-300 et seq.) of this title who (i) rendered at least 15years of total creditable service as a state employee as defined in §2.2-2818 and (ii) after terminating state service, was employed by a localgovernment that does not elect to provide a health insurance credit under §51.1-1401 or 51.1-1402, shall be eligible for the credit provided bysubsection A, provided that the retired employee is participating in a healthinsurance plan. The Commonwealth shall be charged with the credit as providedfor in subsection D. In such case, the health insurance credit shall bedetermined based upon the amount of state service or service as a teacher,whichever is greater.
D. The Virginia Retirement System shall actuarially determine the amountnecessary to fund all credits provided by this section to reflect the cost ofsuch credits in the employer contribution rate pursuant to § 51.1-145, andprescribe such terms and conditions as are necessary to carry out theprovisions of this section. The costs associated with the administration ofthe health insurance credit program provided for in this section shall berecovered from the health insurance credit trust fund.
E. Notwithstanding anything contained in this section to the contrary, theVirginia Commonwealth University Health System Authority shall pay the costof coverage for employees of such Authority who (i) retired under theVirginia Retirement System or any retirement system authorized pursuant to §23-50.16:24.1, 51.1-126, 51.1-126.1, or former § 51.1-126.2; (ii) wereemployed by such Authority prior to July 1, 1998, and were not subsequentlyrehired by such Authority on or after July 1, 1998; and (iii) served no lessthan 15 years of creditable service as regularly employed full-time employeesof such Authority or the Commonwealth.
(1989, c. 664, § 2.1-20.1:2; 1992, c. 770; 1993, cc. 743, 938; 1995, cc. 612,734; 1998, cc. 195, 449, 676; 1999, cc. 832, 980, 984; 2000, cc. 720, 911;2001, c. 844; 2004, c. 79; 2005, c. 535; 2006, c. 622; 2007, c. 64.)