51.1-1402 - Health insurance credits for retired local government employees.
§ 51.1-1402. Health insurance credits for retired local government employees.
A. Retired local government employees, whose localities have elected toparticipate in the Virginia Retirement System, who have rendered at leastfifteen years of total creditable service under the System shall receive ahealth insurance credit to his monthly retirement allowance, which shall beapplied to reduce the retired member's health insurance premium cost,provided the retiree's employer elects to participate in the credit program.The amount of each monthly health insurance credit payable under this sectionshall 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, eachformer member whose retirement was for disability shall receive a monthlyhealth insurance credit of forty-five dollars. Eligibility for the creditshall 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 thissection on the effective date of his retirement.
B. Those retired employees who purchase an alternative policy from a carrieror organization of their own choosing shall be eligible to receive a creditin the amount specified in subsection C. Eligibility for the credit andpayment of the credit shall be determined in a manner prescribed by theVirginia Retirement System.
C. The credit shall be in the amount provided in subsection A or the amountof premium paid for the personal health insurance policy, whichever is less.
D. The cost of the monthly health insurance credit payable under this sectionshall be borne by the locality.
E. The Virginia Retirement System shall actuarially determine the amountnecessary to fund all credits provided under this section, reflect the costof such credits in the applicable employer contribution rate pursuant to §51.1-145, and prescribe such terms and conditions as are necessary to carryout the provisions of this section. The costs associated with theadministration of the health insurance credit program provided for in thissection shall be recovered from the health insurance credit trust fund.
(1992, c. 770, § 2.1-20.1:4; 1993, cc. 743, 938; 1995, cc. 612, 734; 1998,cc. 195, 676; 2001, c. 844.)