                                 CODE OF VIRGINIA

HEALTH INSURANCE CREDITS FOR RETIRED STATE EMPLOYEES (§ 51.1-1400)

A. The Commonwealth shall provide a credit toward the cost of health insurance
coverage for any former state employee, as defined in &#xA7; 2.2-2818, who
retired under the Virginia Retirement System, State Police Officers&#8217;
Retirement System, Judicial Retirement System, Virginia Law Officers&#8217;
Retirement System, or any retirement system authorized pursuant to &#xA7;
51.1-126, 51.1-126.1, 51.1-126.3, 51.1-126.4, 51.1-126.5, 51.1-126.7, or
51.1-169 and who (i) rendered at least 15 years of total creditable service
under the Retirement System or (ii) rendered service as a temporary employee of
the General Assembly in 1972 and became a member of the retirement system from
1972 to 1985 immediately following such temporary service. The amount of each
monthly health insurance credit payable under this section shall be (a) $4 per
year of creditable service or (b) effective July 1, 2024, $4.25 per year of
creditable service, which amount shall be credited monthly to any retired state
employee participating in the state retiree health benefits program pursuant to
&#xA7; 51.1-1405 or an alternative personal health insurance plan as provided
herein. However, such credit shall not exceed the health insurance premium for
retiree-only coverage as provided under such alternative personal health
insurance plan. Any (1) employee participant pursuant to &#xA7; 51.1-126,
51.1-126.1, 51.1-126.3, 51.1-126.4, 51.1-126.5, or 51.1-126.7 receiving
long-term disability, or (2) retired state employee retired under the provisions
of &#xA7; 51.1-156 or 51.1-307, or (3) any participating employee receiving
long-term disability pursuant to &#xA7; 51.1-1112, 51.1-1123, 51.1-1157, or
51.1-1165 shall receive a maximum monthly credit which is the greater of (a)
$120, (b) $4 or, effective July 1, 2024, $4.25 per year for each year of
creditable service at the time of disability retirement, or (c) $4 or, effective
July 1, 2024, $4.25 per year for each year of creditable service at the time of
eligibility for long-term disability. Any person included in the membership of a
retirement system provided by Chapter 1 (&#xA7; 51.1-124.1 et seq.), 2 (&#xA7;
51.1-200 et seq.), 2.1 (&#xA7; 51.1-211 et seq.), or 3 (&#xA7; 51.1-300 et seq.)
who elects to defer his retirement pursuant to subsection C of &#xA7; 51.1-153,
subsection C of &#xA7; 51.1-205 or subsection C of &#xA7; 51.1-305 shall be
entitled to receive the allowable credit provided 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 credit
   shall be applied to the monthly premium deducted from benefits payable to
   retired state employees in accordance with Chapters 1 (&#xA7; 51.1-124.1 et
   seq.), 2 (&#xA7; 51.1-200 et seq.), 2.1 (&#xA7; 51.1-211 et seq.), and 3
   (&#xA7; 51.1-300 et seq.). In the event that either no benefit is payable or
   the benefit payable is insufficient to deduct the entire health care premium,
   the payment of the credit shall be determined in the manner prescribed by the
   Virginia Retirement System. Eligibility for the credit shall be determined in
   a manner prescribed by the Virginia Retirement System.

   2. Not electing or eligible to participate in the state retiree health
   benefits program and who purchase an alternative personal health insurance
   policy from a carrier or organization of his own choosing, such retirees shall
   be eligible to receive a credit in the amount specified in subsection A.
   Eligibility for the credit and payment for the credit shall be determined in a
   manner prescribed by the Virginia Retirement System.

C. Any person included in the membership of a retirement system provided by
Chapter 1 (&#xA7; 51.1-124.1 et seq.), 2 (&#xA7; 51.1-200 et seq.), 2.1 (&#xA7;
51.1-211 et seq.), or 3 (&#xA7; 51.1-300 et seq.) who (i) rendered at least 15
years of total creditable service as a state employee as defined in &#xA7;
2.2-2818 and (ii) after terminating state service, was employed by a local
government that does not elect to provide a health insurance credit under &#xA7;
51.1-1401 or 51.1-1402, shall be eligible for the credit provided by subsection
A, provided that the retired employee is participating in a health insurance
plan. The Commonwealth shall be charged with the credit as provided for in
subsection D. In such case, the health insurance credit shall be determined
based upon the amount of state service or service as a teacher, whichever is
greater.

D. The Virginia Retirement System shall actuarially determine the amount
necessary to fund all credits provided by this section to reflect the cost of
such credits in the employer contribution rate pursuant to &#xA7; 51.1-145, and
prescribe such terms and conditions as are necessary to carry out the provisions
of this section. The costs associated with the administration of the health
insurance credit program provided for in this section shall be recovered from
the health insurance credit trust fund.

E. Notwithstanding anything contained in this section to the contrary, the
Virginia Commonwealth University Health System Authority shall pay the cost of
coverage for employees of such Authority who (i) retired under the Virginia
Retirement System or any retirement system authorized pursuant to &#xA7;
23.1-2416, 51.1-126, 51.1-126.1, or former &#xA7; 51.1-126.2; (ii) were employed
by such Authority prior to July 1, 1998, and were not subsequently rehired by
such Authority on or after July 1, 1998; and (iii) served no less than 15 years
of creditable service as regularly employed full-time employees of such
Authority or the Commonwealth.

HISTORY: 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; 2012,
cc. 701, 823; 2023, c. 264.