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Human Resources


Health Insurance Benefit for Employees Retiring On or Before 7/01/2014                                                                                          626

This policy applies to employees who retire on or before 7/01/2014. Policy #675 is in effect for employees who retire after 7/01/2014.
 
Purpose:
 
The School Board recognizes the contributions made by employees who retire after long-term service to the school division and the impact of the increasing cost of health insurance on their retirement incomes. This policy will establish a method of providing increased benefits for these employees by allowing them and their dependents to remain under the school division's group health insurance coverage and assisting them with the cost of premiums.
 
Eligibility:
 
To be eligible for this benefit as defined, employees must:
  1. be at least 50 years of age and not eligible for Medicare; and
  1. retire after 10 or more cumulative years of service to Harrisonburg City Public Schools; and
  1. have worked for Harrisonburg City Public Schools a minimum of five years immediately preceding retirement; and
  1. retire in good standing (not terminated); and
  1. meet the conditions of retirement prescribed by the Virginia Retirement System (VRS).
All of the aforementioned conditions must be met.
 
In case of disability retirement, with VRS or Social Security, the VRS age restriction will be waived (but not the years of service).
 

Benefit Eligibility:

Years of Service   Years
in Harrisonburg Schools   Benefits will be Paid
  15+   15
14   14
13   13
12   12
11   11
10   10

Procedure:

Eligible employees must complete the required VRS form(s) and sign the Group Health Coverage for Retired Employees form prior to retirement, indicating that:
 
  1. they intend to continue under the school division's health insurance plan; and
  1. they wish to receive the School Board's payment toward this coverage. 
In order to ensure continuous coverage, this notification should be received by the Human Resources Department no later than the employee's effective date of retirement.
 
The health care plan coverage for which the retiring employee is eligible is not to exceed that which the employee was enrolled in during his/her entire last full year of employment immediately preceding retirement. The School Board will pay 70% of the health insurance premium for retirees.
 
The monthly health insurance premium will be deducted from the VRS benefit check provided the VRS benefit is sufficient to cover the premium cost. If the VRS benefit will not cover the monthly premium cost, the retiree will be billed quarterly for the amount due for his/her particular health insurance coverage. To ensure continuous coverage, payment is due and should be made on receipt of the bill, and checks should be made payable to the City of Harrisonburg. Failure to make a quarterly payment of the employee’s share of the cost of insurance within 30 days of the due date will be deemed sufficient cause to terminate the benefit.
 
Employees who retire prior to age 55 should note that their eligibility for continued health insurance coverage under this benefit may expire prior to their reaching age 65. Such individuals must acknowledge in writing that a gap in their health insurance coverage may occur and the school division assumes no responsibility or liability for such a gap.
 
Length of Benefit:
 
The benefit will cease for the retiree under the following conditions:
 
  1. The retiree reaches age 65; or
  1. The retiree becomes eligible for Medicare coverage.
 
This benefit will cease for the dependents of the retiree under any of the following conditions:
 
  1. The retiree reaches age 65; or
  1. The dependent reaches age 65; or
  1. The dependent becomes eligible for Medicare; or
  1. The death of the retiree.
 
Effective Date of Policy:
 
The effective date of this policy is December 7, 1999. Employees who retire on or after December 7, 1999 and on or before July 1, 2014 shall be eligible.


Legal References:
  • Code of Virginia, 1950, as amended, §§ 22.1-78, 22.1-85.
 
Cross References:
 
  • Policy #608 – Staff Fringe Benefits
  • Regulation #608-R – Staff Fringe Benefits
  • Policy #625 – Continuation of Health Insurance Coverage
  • Policy #675 – Health Insurance Benefits for Employees Retiring After 7/01/2014
  • Group Health Coverage for Retired Employees Form




Adopted: June 4, 1991
Last
Reviewed:
 
Revised: December 7, 1999
June 4, 2002
June 21, 2011
November 1, 2011
March 5, 2012


 
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