                                 CODE OF VIRGINIA

HEALTH INSURANCE CREDITS FOR RETIRED LOCAL GOVERNMENT EMPLOYEES (§ 51.1-1402)

A. Retired local government employees, other than employees of a local school
division who are not teachers as defined in &#xA7; 51.1-124.3, whose localities
have elected to participate in the Virginia Retirement System, including the
hybrid retirement program described in &#xA7; 51.1-169, who have rendered at
least 15 years of total creditable service under the System shall receive a
health insurance credit to their monthly retirement allowance, which shall be
applied to reduce the retired member&#8217;s health insurance premium cost,
provided the retiree&#8217;s employer elects to participate in the credit
program. The amount of each monthly health insurance credit payable under this
section shall be $1.50 for each full year of the retired member&#8217;s
creditable service, not to exceed a maximum monthly credit of $45; however, each
former member whose retirement was for 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 $45. 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 policy from a carrier or
organization of their own choosing shall be eligible to receive a credit in the
amount specified in subsection C. 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 the amount provided in subsection A or the amount of
premium paid for the personal health insurance policy, whichever is less.

D. The cost of the monthly health insurance credit payable under this section
shall be borne by the locality.

E. The Virginia Retirement System shall actuarially determine the amount
necessary to fund all credits provided under this section, reflect the cost of
such credits in the applicable 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.

HISTORY: 1992, c. 770, § 2.1-20.1:4; 1993, cc. 743, 938; 1995, cc. 612, 734;
1998, cc. 195, 676; 2001, c. 844; 2012, cc. 701, 823; 2020, c. 1091.