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2004 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 51.1-1400 of the Code of Virginia is amended and reenacted as follows:
§ 51.1-1400. Health insurance credits for retired state employees.
A. The Commonwealth shall provide a credit toward the cost of health insurance
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, and 51.1-126.7 and who (i) rendered at least fifteen 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 four dollars $4 per year of creditable service, not to exceed
a maximum monthly allowance of $120, which amount shall be credited monthly to any retired state
employee participating in the state retiree health benefits program pursuant to
§ 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 retired state employee retired under the provisions of §§ 51.1-156
and 51.1-307 or from 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 and 51.1-126.7 for reason of
disability shall receive the maximum credit provided by this section. 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 Title 51.1 this title who elects to defer his
retirement pursuant to subsection C of §§ 51.1-153, 51.1-205 or § 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 (§ 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
Title 51.1 this title. 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 (§ 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 Title 51.1 this title who (i) rendered at
least fifteen 15 years of total creditable service as a state employee as
defined in § 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 § 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 § 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 §§
23-50.16:24.1, 51.1-126, 51.1-126.1, or former § 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 fifteen 15
years of creditable service as regularly employed full-time employees of such Authority or the
Commonwealth.