ESPs to Get Retirement Boost from VRS
June 10, 2021
June 10, 2021
If you’re an education support professional and you’re in the Virginia Retirement System, paying for your health insurance in retirement just got a little easier. Beginning July 1, the health insurance credit for all non-teacher school division retirees covered by VRS will expand.
Current and future retirees with at least 15 years of VRS service credit will receive a monthly credit of $1.50 per year of service, or $2.50 if your employer elects an additional $1 enhancement. In addition, there will no longer be a $45 monthly cap on how high the credit can go.
The health insurance credit, which is included in your retirement payments and ends upon your death, is tax-free and helps with health insurance premiums you pay for single coverage, excluding any portion of the premiums covering a spouse or dependents. To receive the credit, you must provide supporting documentation if VRS is not deducting your health insurance premiums or if you have additional premiums to report.
Applying for the health insurance credit at retirement
If you have at least 15 years of VRS service credit and are eligible for the health insurance credit at retirement, complete and send the Request for Health Insurance Credit (VRS-45) to VRS. The form is available at varetire.org/forms. Later this summer, you can update health insurance credit information through your myVRS online account.
Retired and newly eligible for the credit?
In late June, VRS will mail eligible non-teacher school division retirees a letter explaining their new eligibility. The letter will include instructions on steps to take to begin receiving the benefit. In the meantime, ensure that your address, email and contact information is up to date through your myVRS account at myVRS.varetire.org.
Retired and already receive the credit?
If you are a retired non-teacher school division employee who already receives the health insurance credit, your benefit may increase. The legislation removes the $45 per month cap on the credit. If eligible, you will automatically receive the appropriate higher credit amount beginning with your August 1 payment, provided you are already reporting premium amounts to VRS to support the increase. You will receive a letter in August notating the change in health insurance credit.
If you are eligible for a higher credit but have not reported health insurance premiums to document your eligibility for the credit, you may report those premiums by submitting a VRS-45 or logging into your myVRS account later this summer.
Keep VRS updated on premium changes after you retire
Keeping your information current ensures you receive the proper credit amount and are not at risk for receiving an overpayment, which would require you to reimburse VRS. Report a premium change or cancellation through your myVRS account or by submitting the VRS-45.
Stay up to date on the latest VRS news and information— follow Virginia Retirement System on Facebook and subscribe to Member News here.