The health insurance credit provides you with a reimbursement to assist with the cost of your health insurance premiums.
The credit is a dollar amount set by the General Assembly for each year of service and is added to your monthly retirement benefit. It ends upon your death and cannot exceed the amount of your individual health insurance premium.
- Retiring with 15 or more years of service credit from an eligible employer; or
- Retiring on disability; or
- Receiving a long-term disability benefit through the Virginia Sickness and Disability Program (VSDP) or the Virginia Local Disability Program VLDP) if your employer participates in the Health Insurance Credit.
Note: If you have at least 15 years of service as a teacher, school administrator, school board employee or state employee, and retire from a political subdivision that does not offer the health insurance credit, you are eligible for the health insurance credit based on your years of service.
Qualifying Health Plans
Individual health plans; coverage as a dependent on a spouse's plan; employer-sponsored health plans, including the Commonwealth of Virginia Health Benefits Program; Medicare Part B; and dental, vision and prescription drug plans including Medicare Part D are eligible. Other types of plans for specific conditions or coverage are not eligible.
Applying for the Health Insurance Credit
If VRS is deducting your health insurance premium from your benefit, you do not need to apply for the health insurance credit. If VRS is not deducting your health insurance premium or you have eligible health insurance coverage in addition to your employer-sponsored coverage, complete and send the Request for Health Insurance Credit VRS-45 to VRS. The credit will be added to your monthly retirement benefit. If you do not receive a monthly benefit, you will receive a check from VRS for the reimbursable amount.
Completing the VRS-45: A Tutorial
Get step-by-step instructions on how to complete your request for the health insurance credit.
If you are on long-term disability through the Virginia Sickness and Disability Program (VSDP), obtain the form from ReedGroup, the VSDP third-party administrator. The credit will be added to your long-term disability benefit.
Report Health Insurance Coverage Changes
Report the following coverage changes to VRS by completing a new Request for Health Insurance Credit VRS-45 :
- Change in your health insurance plan.
- Increase or decrease in your health insurance premium.
- Cancellation of your health insurance.
If your health insurance premiums are deducted from your retirement benefit, you do not need to complete a VRS-45 notifying VRS of a premium increase.
If you are on long-term disability through the Virginia Sickness and Disability Program or the Virginia Local Disability Program, obtain the form from ReedGroup, the VSDP third-party administrator. The form should be returned to ReedGroup.
For more information, call ReedGroup at 1-877-928-7021.