                                 CODE OF VIRGINIA

HEALTH INSURANCE CREDITS FOR RETIRED TEACHERS (§ 51.1-1401)

A. A teacher, as defined in &#xA7; 51.1-124.3, retired under the Virginia
Retirement System, including the hybrid retirement program described in &#xA7;
51.1-169, and any employee retired under a defined contribution plan pursuant to
&#xA7; 51.1-126.6, who rendered at least 15 years of total creditable service
under the System or plan shall receive a health insurance credit to his monthly
retirement allowance, which shall be applied to reduce the retired
member&#8217;s health insurance premium cost. The amount of each monthly health
insurance credit payable under this section shall be $4 for each full year of
the retired member&#8217;s creditable service; however, each former member whose
retirement was for disability, any employee participant pursuant to &#xA7;
51.1-126.6 receiving long-term disability, a participant receiving long-term
disability pursuant to &#xA7; 51.1-1157 or 51.1-1165, or a member of the hybrid
retirement program receiving long-term disability pursuant to coverage under
subsection A of &#xA7; 51.1-1153 shall receive a monthly health insurance credit
of $4 multiplied by the smaller of (i) twice the amount of his creditable
service or (ii) the amount of creditable service he would have completed at age
60 if he had remained in service to that age. Eligibility for the credit shall
be determined in a manner prescribed by the Virginia Retirement System. Any
member who elects to defer his retirement pursuant to subsection C of &#xA7;
51.1-153 shall be entitled to receive the allowable credit provided by this
section on the effective date of his retirement.

B. Those retired employees who purchase an alternative personal health insurance
policy from a carrier or organization of their own choosing shall be eligible to
receive a credit in the amount specified in subsection D. Eligibility for the
credit and payment of the credit shall be determined in a manner prescribed by
the Virginia Retirement System.

C. The credit shall be in (i) the amount provided in subsection A or (ii) the
amount of premium paid for the personal health insurance policy, whichever is
less.

D. 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 teacher as defined in &#xA7; 51.1-124.3
and (ii) after terminating service as a teacher, was employed by a local
government that does not elect to provide a health insurance credit under &#xA7;
51.1-1402, shall be eligible for the credit provided by subsection A and
subsection B if provided by the school division from which the service described
in clause (i) was rendered, provided that the retired employee is participating
in a health insurance plan. The Commonwealth and local school division, if
appropriate, shall be charged with the credit as provided for in subsection E.
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.

E. The Virginia Retirement System shall (i) actuarially determine the amount
necessary to fund all credits provided under this section; (ii) reflect the cost
of such credits in the applicable employer contribution rate pursuant to
&#xA7;&#xA7; 51.1-145, 51.1-204, and 51.1-304; and (iii) 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 program
provided for in this section shall be recovered from the health insurance credit
trust fund.

HISTORY: 1992, c. 770, § 2.1-20.1:3; 1993, cc. 743, 938; 1995, cc. 612, 734;
1996, c. 764; 1998, cc. 195, 676; 1999, cc. 832, 980, 984; 2000, c. 911; 2001,
c. 844; 2004, c. 84; 2007, cc. 866, 921; 2009, c. 23; 2011, c. 722; 2012, cc.
701, 823.