VRS Handbook for Members - Virginia Retirement System

January 1 until it reaches 25 percent of its original value. Example: If age 65
is your normal retirement age and you turn 65 on May 2, 2013, your first 25
percent reduction will occur on January 1, 2015.
If you have optional group life insurance coverage, you may continue a portion
of your coverage into retirement if you and your spouse and dependent children,
if applicable, were continuously covered during the 60 months preceding your
retirement date. If you were covered for less than 60 months before retirement,
your coverage will continue until the end of the month in which you reach
your normal retirement age. In either case, you have the option to convert your
coverage to an individual policy upon retirement. For more information, contact
Minnesota Life, the insurer for the VRS Group Life Insurance Program, toll free
at 1-800-441-2258.
Health Insurance Credit
Benefits and Insurance
in Retirement – For more
information about the COLA,
taxes, group life insurance,
health insurance if you are a
state employee and the health
insurance credit, see Chapter
12-Receiving Retirement
and Deferred Compensation
Plan Payments and Chapter
13-Insurance in Retirement.
The health insurance credit is a tax-free benefit that assists with health insurance
premiums you pay for single coverage, excluding any portion of the premiums
covering a spouse or dependents. The credit cannot exceed the amount of your
monthly premiums.
• If you are a state employee, the maximum health insurance credit is $120 per
month or $4 per year of total service credit per month, whichever is higher.
• If you are a teacher or administrative school employee, the maximum health
insurance credit is either (a) $4 multiplied by twice the amount of your service
credit per month or (b) $4 multiplied by the amount of service you would
have earned had you remained an active employee until age 60 per month,
whichever is less.
• If you are a political subdivision employee and your employer participates in
the health insurance credit program, you are eligible for a maximum credit of
$45 per month.
Working After Disability Retirement
In some cases, you can continue to receive your disability retirement benefits
if you work in a temporary, hourly or other non-covered position with a VRSparticipating
employer. If you work for any employer in a position that requires
the same or similar duties as those you performed before retiring on disability,
your disability retirement benefits will end. If you return to VRS-covered
employment, your benefits will end and you will become an active member. If
you are considering employment after you retire on disability, contact VRS toll
free at 1-888-VARETIR (1-888-827-3847) to determine whether the position
would disqualify you from continuing to receive your disability retirement
benefits. For more information, see also Chapter 14-Working After Retirement.
Important Note if You
Return to Covered
Employment – If you retire
on disability and then return to
covered employment, you will
retire under service retirement
when you retire again. The
period of time you were retired
on disability will be included
in the calculation of your
service retirement benefit. If
you wish to be considered for
disability retirement again, you
must reapply by submitting all
required disability retirement
forms and documents. Your
application will be evaluated
under the medical review
process based on the duties of
your new position.
47 | CH 7 • VIRGINIA RETIREMENT SYSTEM Plan 1