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2005 SESSION
053034732Be 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, and any other full-time, salaried employee of a local school board retired under the Virginia Retirement System, 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 $4.00 for each full year of the retired member's creditable
service,. not
to exceed a maximum monthly credit of $75; however, each Each former member whose retirement was for disability shall
receive a monthly health insurance credit of $75 in the amount computed under this section or $120, whichever
is greater. 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.
CB.
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.
DC. 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.
ED. 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 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.
FE. 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.
2. That the provisions of this act shall become effective July 1, 2005, and shall apply to employees who retired prior to July 1, 2005, as well as those who retire on or after July 1, 2005.