2023 Vermont Statutes › Title 16 - Education › Chapter 55 - State Teachers' Retirement System of Vermont › § 1944e. Retired teachers health and medical benefits

§ 1944e. Retired teachers health and medical benefits
(a) Payment of a portion of the cost of health and medical benefits provided by subsection 1942(p) of this title for retired members and their dependents shall be made from the Benefits Fund. The Board shall determine the total costs of the applicable standard plan for a retired member and of the applicable standard plan for a retired member and spouse, and the Board shall pay the following portion of those costs:
(1) For retired members:
(A) 80 percent of the cost for a retired member who has either at least 10 years of creditable service as of July 1, 2010, or 25 years of creditable service at the time of retirement;
(B) 70 percent of the cost for a retired member who has fewer than 10 years of creditable service as of July 1, 2010, and 20 years or more but fewer than 25 years of creditable service at the time of retirement;
(C) 60 percent of the cost for a retired member who has fewer than 10 years of creditable service as of July 1, 2010, and 15 or more but fewer than 20 years of creditable service at the time of retirement; and
(D) for retired members who do not meet the requirements of subdivisions (A) through (C) of this subdivision (1), no portion of the costs shall be paid.
(2) For a retired member’s spouse. In addition to the payments for retired members’ health and medical benefits specified in subdivision (a)(1) of this section, 80 percent of the cost for the retired member’s spouse during the retired member’s life, where:
(A) the retired member has fewer than 15 years of creditable service as of July 1, 2010, and at least 25 years of creditable service at the time of retirement; or
(B) the retired member has 15 or more but fewer than 25 years of creditable service as of July 1, 2010, and at least 10 additional years of creditable service at the time of retirement; or
(C) the retired member has 25 or more but fewer than 30 years of creditable service as of July 1, 2010, and at least 35 years of creditable service at the time of retirement; or
(D) the retired member has at least 30 years of creditable service as of July 1, 2010, and at least five additional years of creditable service at the time of retirement; and
(E) the service was not purchased, restored, granted, or transferred on or after July 1, 2010.
(b) The Board shall pay an equal dollar amount for eligible retirees regardless of the plan selected. All eligible retirees may select health plan coverage from a range of plans approved by the Board. Retired members may authorize deductions to be made from their monthly retirement allowance for the balance of the cost of such benefits for the retired members and their dependents.
(c) Periodically, the Board shall approve the following:
(1) a standard plan for retirees who are not yet eligible for Medicare, which plan shall provide first dollar coverage for subscribers;
(2) a standard plan for retirees who are eligible for Medicare, which plan shall provide first dollar coverage for subscribers; and
(3) a range of plans that may be selected by retirees, including the standard applicable plans.
(d) For fiscal year 2004 and thereafter, the cost of the applicable standard plan determined under this subsection shall not exceed the cost of the $250.00 comprehensive plan offered in fiscal year 2003, adjusted for the appropriate fiscal year. In the event of the discontinuance of the $250.00 comprehensive plan, a plan with a comparable expenditure profile shall be used as a benchmark.
(e) As of January 1, 2007 and thereafter, upon retirement, members entitled to prorated Group medical benefit plan premium payments from the Retirement System under the terms of this section shall have a one-time option to reduce the percentage of premium payments from the Benefits Fund during the member’s life, with the provision that the Benefits Fund shall continue making an equal percentage of premium payments after the member’s death for the life of the dependent beneficiary nominated by the member under section 1941 of this title, should such dependent beneficiary survive the member. The Board, after consultation with its actuary, shall establish reduced premium payment percentages that are as cost neutral to the Benefits Fund as possible. (Added 2017, No. 165 (Adj. Sess.), § 21; amended 2019, No. 25, § 2, eff. May 16, 2019.)