The health insurance credit assists 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.

Eligibility Requirements

  • 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.

  • 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.
  • Dental and vision plans.
  • Prescription drug plans, including Medicare Part D.
  • Long-term care insurance contracts.
  • Long-term disability insurance.
  • Hospital or accident indemnity policies.
  • Supplemental policies for cancer or other specific illnesses.
  • Medical discount programs.

The following are examples of plans not eligible for the health insurance credit:

  • Health care sharing ministries or cooperatives.
  • Direct primary care arrangements such as concierge medicine.
  • Life insurance.

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, register or log into your myVRS account to manage your health insurance credit online, or 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.

Watch the Presentation

Completing the VRS-45: A Tutorial
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 Alight, the VSDP third-party administrator. The credit will be added to your long-term disability benefit.

Alight, 1-877-928-7021

Report the following coverage changes to VRS by logging in to myVRS or 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 notify 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 health insurance credit form from Alight, the VSDP third-party administrator. The form should be returned to Alight.

For more information, call Alight at 1-877-928-7021.

Retired State Employees, Teachers, Non-Teacher School Division Employees, School Administrators and School Board Employees

If you retire with at least 15 years of service, you are eligible for a monthly health insurance credit for each year of service.

Retired Optional or Alternative Retirement Plan Participants

If you retire under an Optional Retirement Plan (ORP) or Alternative Retirement Plan (ARP), you may qualify for the health insurance credit if you have at least 15 years of coverage under the ORP or ARP or a combination of VRS service credit and ORP or ARP coverage equal to at least 15 years. Your employer must submit the ORP/ARP Health Insurance Credit Employer Certification of Service (VRS-75) to VRS to certify your ORP/ARP service.

Retirees from Political Subdivisions

If you retire with at least 15 years of service from an employer that offers the health insurance credit, you are eligible for a monthly health insurance credit for each year of service, up to a maximum of 30 years of service.

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 that service.

Retired General Registrars, Local Officers, Employees of General Registrars and Local Social Service Employees

If you retire with at least 15 years of service, you are eligible for a monthly health insurance credit for each year of service, up to a maximum of 30 years of service, regardless of whether your last employer offers the health insurance credit.

Note If you have at least 15 years of service as a general registrar, local officer, employee of a general registrar or local officer or local social service employee but do not retire directly from one of these positions, the employer for which you earned your eligibility must certify your service. Complete your portion of the Certification of Employer for Health Insurance Credit Eligibility VRS-76 and submit it to your certifying employer.

Virginia Sickness and Disability (VSDP) Participants

If you are on long-term disability through VSDP, you are eligible for the greater of $120 per month or $4 per year of your service credit per month at the time you become disabled.

State Employee Disability Retirees

If you retire on disability as a state employee, you are eligible for the greater of $120 per month or $4 per year of your service credit per month at the time you become disabled.

Political Subdivision Disability Retirees

If you retire on disability from a political subdivision employer that offers the health insurance credit, you are eligible for a monthly health insurance credit amount up to a maximum of $45 regardless of the amount of your service at the time you retire on disability.

Teacher, School Administrator and School Board Employee Disability Retirees

If you are a teacher, school administrator or school board employee and retire on disability effective July 1, 2007, you are eligible for a monthly health insurance credit equal to either (1) $4 multiplied by twice the amount of your service credit at the time you become disabled; or (2) $4 multiplied by the amount of service you would have earned had you remained an active employee until age 60, whichever amount is less. If you are currently retired on disability, your health insurance credit will change only if one of these formulas would provide you a higher amount

Eligible Retirees Service Retirement
Credit Amount per Year of Service
Disability Retiree and Long-Term Disability Maximum Credit per Month
State employees, including participants in an optional or alternate retirement plan $4.00 $120 or $4 per year of service, whichever is greater No Maximum
Teachers $4.00 $4 x the smaller of (a) twice the amount of service credit or (b) the amount of service that would have been earned had the member remained an active employee until age 60. No Maximum
General registrars and their employees; constitutional officers and their employees; local social service employees $1.50 $45.00 $45.00
General registrars and their employees; constitutional officers and their employees; local social service employees if political subdivision elects $1.00 enhancement $2.50 $75.00 $75.00
Non-teacher school division employees $1.50 $1.50 x the smaller of (a) twice the amount of service credit or (b) the amount of service that would have been earned had the member remained an active employee until age 60 No Maximum
Non-teacher school division employees, if the school division has elected the $1.00 enhancement $2.50 $2.50 x the smaller of (a) twice the amount of service credit or (b) the amount of service that would have been earned had the member remained an active employee until age 60 No Maximum
Other political subdivision employees as elected by the employer $1.50 $45.00 $45.00

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