Employer Update

Beginning July 1, school divisions that provide VRS retirement benefits to non-teacher employees must provide a health insurance credit to all current and future eligible retirees (refer to House Bill 1513.) As a reminder, participating school divisions began paying contributions for this benefit last year in preparation for providing the benefit.

• The newly eligible non-teacher retirees must have at least 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. That group will automatically receive the appropriate higher credit amount beginning with the August 1 monthly benefit, provided VRS is deducting their health insurance premiums on the employer's behalf and retirees are already reporting premium amounts to VRS to substantiate the increase. VRS will mail notifications to retirees for whom the cap is removed.
• If retirees are eligible for a higher credit but have not reported health insurance premiums to document eligibility for the credit, they may report those premiums by submitting the Request for Health Insurance Credit (VRS-45).
• 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.

In early summer, VRS will identify and mail eligible school division retirees a letter explaining their new eligibility and providing additional instruction.