10103919D
HOUSE BILL NO. 1055
Offered January 13, 2010
Prefiled January 13, 2010
A BILL to amend and reenact § 51.1-1403 of the Code of
Virginia, relating to the Virginia Retirement System; health insurance credits.
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Patron-- Armstrong
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Referred to Committee on Appropriations
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Be it enacted by the General Assembly of Virginia:
1. That § 51.1-1403 of the Code of Virginia is
amended and reenacted as follows:
§51.1-1403. Health insurance credits
A. A local officer, as defined in §51.1-124.3, general
registrar, employee of a general registrar, or an employee of a local social
services board, retired under the Virginia Retirement System who rendered at
least 15 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 $1.50 $4 for each full year of the
retired member's creditable service., not to exceed a maximum monthly credit of $45;
however, each Each former
member whose retirement was for disability shall receive a monthly
health insurance credit of $45 maximum
monthly credit which is the greatest of (i) $120, (ii) $4 for each year of creditable service at the time of
disability retirement, or (iii) $4 or each year of creditable service at the
time of eligibility for long-term disability. 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. 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 credit in the
amount specified in subdivision CB 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 (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.
DC. 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.) who
(i) rendered at least 15 years of total creditable service as a local officer
as defined in §51.1-124.3 or as an employee of a local social services board
or combined service as a general registrar or an employee of a general
registrar and (ii) after terminating service as a local officer or employee of
a local social services board or general registrar or as an employee of a
general registrar, 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, provided that the retired employee is
participating in a health insurance plan. The Commonwealth shall be charged
with the credit as provided for in subsection A. In such case, the health
insurance credit shall be determined based upon the amount of state service or
service as a local officer or service as an employee of a local social services
board or combined service as a general registrar or an employee of a general
registrar, whichever is greater.
ED. 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. 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 not be in
force at any time that the entire cost of the health insurance credits is not
borne by the Commonwealth, including any time that the Appropriations Act
permits the State Compensation Board to recoup the cost of the health insurance
credits it pays to the Virginia Retirement System, by withholding the amount of
such cost from its payments to localities.
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