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Retiree Health Insurance Credit
If you retire with at least 15 years of service credit, you may be eligible for the retiree health insurance credit, a tax-free reimbursement to assist with your health insurance premiums. You also may be eligible for the credit if you leave employment on disability retirement or VSDP long-term disability.
The credit is a dollar amount set by the General Assembly for each year of service. It is added to your monthly retirement benefit for health insurance premiums you pay for:
- Individual health plans
- Coverage as a dependent on a spouse’s plan
- Employer-sponsored health plans such as the State Retiree Health Benefits Program
- Medicare Part B
- Dental, vision and prescription drug plans such as Medicare Part D.
The health insurance credit ends upon your death and cannot exceed the amount of the health insurance premiums you pay.
Applying for the Health Insurance Credit
If VRS will be deducting your health insurance premiums from your monthly benefit payment, you do not need to apply for the health insurance credit. If you are eligible, your reimbursement will be automatic.
For any premiums VRS will not be deducting, submit the Request for Health Insurance Credit (VRS-45) 
62kb. The form is available from your human resource office or from the Service Retirement Forms page.
