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Developed and maintained by the Division of Legislative Automated Systems.
1998 SESSION
Be it enacted by the General Assembly of Virginia:
1. That §§ 2.1-20.1:2, 2.1-20.1:3 and 2.1-20.1:4 of the Code of Virginia are amended and reenacted as follows:
§ 2.1-20.1:2. Health insurance credits for retired state employees.
A. The Commonwealth shall pay the cost of coverage for state employees retired under the Virginia Retirement System, State Police Officers Retirement System, Judicial Retirement System or any retirement system authorized pursuant to § 51.1-126 who (i) served no less than fifteen years of creditable service as regularly employed full-time employees of the Commonwealth 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. An amount of two dollars and fifty cents per year of creditable service not to exceed a maximum monthly allowance of seventy-five dollars shall be credited monthly to any retired state employee participating in the state health plan established by § 2.1-20.1 or a 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 personal health insurance plan. Any retired state employee retired under the provisions of §§ 51.1-156 and 51.1-307 shall receive the maximum credit provided by this section. Any member who elects to defer his retirement pursuant to subsection C of §§ 51.1-153, 51.1-205 and 51.1-305 shall be entitled to receive the allowable credit provided by this section on the effective date of his retirement.
B. 1. For those retired state employees participating in the state health plan,
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.) and 3 (§ 51.1-300 et
seq.) of Title 51.1. 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 in a manner prescribed by the Virginia
Retirement System shall transfer funds in an amount equivalent to the
credits that would otherwise have been payable to the Department of Personnel
and Training. Eligibility for the credit shall be determined in a manner
prescribed by the Virginia Retirement System.
2. For those retired state employees electing not to participate in the state
health plan 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 reimbursement equal to the credit in the
amount specified in subdivision B 3 subsection A.
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 section the credit and
payment of the credit shall be determined in a manner prescribed by the
Virginia Retirement System. The retired state employee's election to
participate shall be deemed continuing and automatically renewed unless such
retiree affirmatively revokes, in writing, his participation. Subject to the
limitations of subdivision B 3, the reimbursement amount shall increase or
decrease, in like amount, if the retiree's private health insurance policy
premium increases or decreases.
3. The reimbursement shall be in the amount of the credit provided in
subsection A or the amount of premium paid for the personal health insurance
policy, whichever is less.
4. A retired state employee who fails to elect to participate in the
state health plan within thirty-one days of the effective date of retirement,
or who, once having elected to participate, discontinues participation, is
barred from participating in the state health plan thereafter.
C. The Virginia Retirement System shall actuarially determine the amount
necessary to fund all credits provided by this section and shall
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 Fund.
§ 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. 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. 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 the credit and payment of
the credit 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 credit 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.
D. 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, 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. 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 Fund.
§ 2.1-20.1:4. Health insurance credits for local government employees.
A. Retired local government employees, whose localities have elected to
participate in the Virginia Retirement System, who have 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
(i) the retiree's employer elects to participate in the credit
program and sponsors a health insurance plan for its employees and (ii)
the employee elects to participate in that employer-sponsored plan. The
amount of each monthly health insurance credit payable under this section shall
be $1.50 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.
B. 1. Those retired employees who purchase an alternative policy from a carrier or organization of their own choosing shall be eligible to receive a credit in the amount specified in subdivision B 2. Eligibility for the credit and payment of the credit shall be determined in a manner prescribed by the Virginia Retirement System.
2. The credit shall be in the amount provided in subsection A or the amount of premium paid for the personal health insurance policy, whichever is less.
B. C. The cost of the monthly health insurance
credit payable under this section shall be paid borne by
the locality.
C. D. The Virginia Retirement System shall actuarially
determine the amount necessary to fund all credits provided under this section
and shall reflect the cost of such credits in the applicable 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. 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.
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 Fund.
D. Employers who elect to participate in the program by offering an
employer-sponsored health insurance plan shall notify the Virginia Retirement
System at least twelve months prior to the date such employers 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.