HB2866: Health insurance credits; to include all retired school division employees.
Be it enacted by the General Assembly of Virginia:
1. That § 51.1-1401 of the Code of Virginia is amended and reenacted as follows:
§ 51.1-1401. Health insurance credits for retired school division employees.
A. A teacher, as defined in § 51.1-124.3,An
employee of a local school division retired under the Virginia
Retirement System, and any employee retired under a defined contribution plan
pursuant to § 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's health insurance premium cost. The amount of each monthly health
insurance credit payable under this section shall be $2.50 for each full year
of the retired member's creditable service, not to exceed a maximum monthly
credit of $75; however, each former member whose retirement was for disability
shall receive a monthly health insurance credit of $75. 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 § 51.1-153 shall be entitled to receive the allowable credit provided by
this section on the effective date of his retirement. The cost of such credit
shall be borne by the Commonwealth.
B. In addition to the health insurance credit authorized in subsection A, localities which participate in the Virginia Retirement System may elect to provide an additional health insurance credit of $1 per month for each full year of the retired member's creditable service, not to exceed a maximum monthly credit of $30. The costs of such additional health insurance credit shall be borne by the locality.
C. 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.
D. The credit shall be in (i) the amount provided in subsection A, or subsection A and subsection B if the additional credit authorized by subsection B is provided or (ii) the amount of premium paid for the personal health insurance policy, whichever is less.
E. Any person included 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 (i)
rendered at least 15 years of total creditable service as a teacher as
defined in § 51.1-124.3 an employee of a
local school division and (ii) after terminating service as a
teacheran employee of a local school division,
was employed by a local government that does not elect to provide a health
insurance credit under § 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 F. In such case, the health insurance credit shall
be determined based upon the amount of state service or service as a
teacheran employee of a local school division,
whichever is greater.
F. 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 §§ 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.