Hybrid Retirement Plan: Helping You Plan for Tomorrow, Today

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    Health Insurance Credit

    Health Insurance Credit

    If you retire with at least 15 years of creditable service, you may be eligible for the health insurance credit. This is a tax-free benefit that assists with health insurance premiums you pay for single coverage under qualifying health plans, excluding any portion of the premiums covering a spouse or dependents. Eligible employees include:

    • State employees
    • Teachers and school administrators
    • General registrars and their employees, constitutional officers and their employees and local social service employees
    • Employees of political subdivisions that have elected to provide the health insurance credit

    The health insurance credit is applied to your monthly benefit payment under the defined benefit component of your plan. If you do not receive a monthly benefit, VRS will reimburse you for the amount. The credit ends upon your death.

    Health Insurance Credit Dollar Amounts
    Eligible Retirees Service Retirement
    Credit Amount per Year of Service
    Disability Retiree and Long-Term Disability Maximum Credit per Month

    State employees, including participants in an optional or alternate retirement plan

    $4.00

    $120 or $4 per year of service, whichever is greater

    No Maximum

    Teachers

    $4.00

    $4 x the smaller of (a) twice the amount of service credit or (b) the amount of service that would have been earned had the member remained an active employee Until age 60.

    No Maximum

    General registrars and their employees; constitutional officers and their employees; local social service employees

    $1.50
    $45.00
    $45.00

    General registrars and their employees; constitutional officers and their employees; local social service employees if political subdivision elects $1.00 enhancement

    $2.50
    $75.00
    $75.00

    Other political subdivision employees as elected by the employer

    $1.50
    $45.00
    $45.00
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