Employer Update

Legislation passed in 2023 increases the health insurance credit for retired constitutional officers, their employees and state employees, effective July 1.

Constitutional Officers and Employees

• Raises the monthly health insurance credit amount from $1.50 to $1.75 per year of creditable service (not to exceed $52.50 per month) for retired constitutional officers and their employees who have at least 15 years of creditable service.
• Increases the monthly health insurance credit to $52.50 per month for constitutional officers or constitutional officers’ employees who retired on long-term disability.

State Employees

• Raises the monthly health insurance credit amount from $4 to $4.25 per year of service with no monthly cap for retired state employees who have at least 15 years of creditable service.
• Increases the monthly health insurance credit for state employees who retired on long-term disability from $4 per year of service to $4.25, or $120 per month, whichever is greater.

The health insurance credit assists with the cost of health insurance premiums. It is a dollar amount set by the General Assembly for each year of service and is added to an eligible retiree’s monthly retirement benefit. It ends upon death and cannot exceed the amount of an individual’s health insurance premiums.

NOTE
The Health Insurance Credit Dollar Amounts chart will be updated on July 1 when the increases take effect.