Line of Duty Act Coverage Lists Due May 31 for Participating Employers

May 2024

Human resource managers for employers that participate in the Line of Duty Act (LODA) Fund should soon receive an email requesting confirmation of their LODA coverage lists. The coverage list should include fiscal year 2025 eligible employees and volunteers.

Please respond to the request no later than May 31. If you have questions, email lodabilling@varetire.org.

Does Your Agency Participate in the LODA Fund?

See our list of LODA Fund participating employers.

LODA Fund Premiums Increasing July 1

Pending approval of the state budget for fiscal years 2025-2026, participating employers will pay $1,015 per full-time equivalent employee effective July 1, 2024. (This is an increase from $830.)

By statute, LODA Fund benefits are funded on a “pay-as-you-go” basis, covering the health care premiums for current beneficiaries as well as projected costs of any new death and other benefit claims.

What’s driving the increase? LODA premiums are expected to increase each rate-setting period as health care costs and the number of beneficiaries increase. Legislation passed in 2023, which added additional presumptions of compensability, and legislation passed in 2024 that raised some death benefit payouts from $25,000 to $75,000, further increased costs to administer the program.

Premiums, paid by employers, go into the LODA Fund to cover the costs of benefits and administrative fees. The LODA Fund is separate from the VRS pension plan. Under the Internal Revenue Code’s exclusive benefit rule, the VRS trust fund cannot be used to cover LODA benefits.