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2004 SESSION
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 teachers.
A. A teacher, as defined in § 51.1-124.3, 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 fifteen 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 two dollars and fifty cents $2.50 for each full year of
the retired member's creditable service, not to exceed a maximum monthly credit of
seventy-five dollars $75; however, each former member whose retirement was
for disability shall receive a monthly health insurance credit of seventy-five
dollars $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 one dollar $1 per month for
each full year of the retired member's creditable service, not to exceed a maximum
monthly credit of thirty dollars $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 Title 51.1 this title who (i) rendered at
least fifteen 15 years of total creditable service as a teacher as defined in §
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
§ 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 teacher, 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.