Employer Update

Beginning July 1, school divisions that provide retirement benefits to non-teacher employees (school bus drivers, custodial staff, food service staff, etc.) must provide a health insurance credit to all current and future eligible retirees (refer to House Bill 1513.)

• The newly eligible non-teacher retirees must have 15 years of total service credit to receive the monthly health insurance credit, which is $1.50 per year of service.
• School divisions may elect to offer an additional $1 per year of service, for a total monthly credit of $2.50 per year of service for eligible retirees.
• The legislation removes the $45 per-month cap for this group of retirees.
• The credit does not apply to eligible employees who retired on disability before July 1, 2020, if it would reduce the retiree’s current monthly credit amount. Retirees must document their eligible expenses and submit the Request for Health Insurance Credit (VRS-45).

As a reminder, participating school divisions began paying contributions for this benefit last summer. Look for an email from VRS later this month with further details on how VRS will implement the credit for eligible retirees.