SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
1996 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 2.1-20.1:3 of the Code of Virginia is amended and reenacted as follows:
§ 2.1-20.1:3. Health insurance credits for retired teachers.
A. A teacher, as defined in § 51.1-124.3, retired under the Virginia
Retirement System who rendered at least fifteen years of total creditable
service under the System 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, provided the retiree's employer elects to
participate in the credit program and sponsors a health insurance plan for its
employees and the employee elects to participate in that employer-sponsored
plan. The amount of each monthly health insurance credit payable under this
section shall be one dollar and fifty cents for each full year of the retired
member's creditable service, not to exceed a maximum monthly credit of
forty-five dollars; however, each former member whose retirement was for
disability shall receive a monthly health insurance credit of forty-five
dollars. 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. Each monthly health insurance credit payable under this section shall be
paid by the Commonwealth and the employer based on the composite index
established in the general appropriation act. In addition to the health
insurance credit authorized in subsection A, localities who participate in the
Virginia Retirement System may elect to provide an additional health insurance
credit of one dollar per month for each full year of the retired member's
creditable service, not to exceed a maximum monthly credit of thirty dollars.
The costs of such additional health insurance credit shall be borne by the
locality.
C. 1. 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 reimbursement equal to the credit in the amount specified in subdivision C 2. Such reimbursement, not to exceed the actual premium paid, and reduced by the administrative charge for processing the reimbursement, shall be paid upon presentation of documentation satisfactory to the Virginia Retirement System that the premium for such personal health insurance policy has been paid. Eligibility for reimbursement under this provision shall be determined in a manner prescribed by the Virginia Retirement System. Reimbursement of the retired employee shall be deemed continuing and automatically renewed unless such retiree affirmatively revokes, in writing, his eligibility for reimbursement. Subject to the limitations of subdivision C 2, the reimbursement amount shall increase or decrease, in like amount, if the retiree's private health insurance policy premium increases or decreases.
2. The reimbursement shall be in (i) the amount of the credit 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.
C. D. The Virginia Retirement System shall (i)
actuarially determine the amount necessary to fund all credits provided
under this section and shall , (ii) reflect the cost of such
credits in the applicable employer contribution rate pursuant to §
51.1-145, and (iii) prescribe such terms and conditions as are necessary to
carry out the provisions of this section. In addition, the Retirement
System shall be entitled to recover from the Department of Personnel and
Training, through interagency transfer or otherwise, reasonable costs
associated with the administration of the health insurance credit program
provided for in this section.
D. Employers who elect to participate in the program by offering an
employer-sponsored health insurance plan shall notify the Virginia Retirement
System and the Virginia Department of Education at least twelve months prior to
the date they elect to commence participation in the program. The effective
date of the employer's participation shall correspond with the beginning of the
Commonwealth's fiscal year.
2. That the provisions of this act shall become effective on July 1, 1998.