FY22 financial report print.indd
Virginia Tech Financial Report 2021-2022
20. Other Postemployment Benefits The university participates in postemployment benefit programs that are sponsored by the commonwealth and administered by the Virginia Retirement System (VRS, or the System) or the Department of Human Resource Management. These programs include the Pre-Medicare Retiree Healthcare program, Virginia Sickness and Disability program, Group Life Insurance program, Retiree Health Insurance Credit program, and Line of Duty Act program. The specific information for each of these Other Postem ployment Benefit (OPEB) programs is described below: Plan Descriptions Pre-Medicare Retiree Healthcare (PMRH) program All full-time and part-time permanent salaried Virginia Tech employees who are covered under the Virginia Retirement System (VRS), the State Police Officers’ Retirement System (SPORS), or the Virginia Law Officers’ Retirement System (VaLORS) are eligible to participate in the commonwealth’s healthcare program upon employment. Retir ees who are not yet eligible for Medicare health benefits may continue to participate in this program by meeting certain eligibility requirements. Virginia Sickness and Disability (VSDP) program All full-time and part-time permanent salaried Virginia Tech employees who are covered under the Virginia Retirement System (VRS), the State Police Officers’ Retirement System (SPORS), or the Virginia Law Officers’ Retirement System (VaLORS) hired on or after January 1, 1999 are automatically covered by VSDP upon employment. The VSDP program also covers Virginia Tech employees hired before January 1, 1999 who elected to transfer to VSDP rather than retain their eligibility to be considered for disability retirement. Group Life Insurance (GLI) program All full-time, salaried, permanent employees of Virginia Tech are automatically covered by the GLI program upon employment. (Note: In addition to the Basic Group Life Insurance benefit, members are also eligible to elect additional coverage for themselves as well as a spouse or dependent children through the Optional Group Life Insur ance program. For members who elect the optional group life insurance coverage, the insurer bills Virginia Tech directly for the premiums. Virginia Tech deducts these premiums from members’ paychecks and pays the premiums to the insurer. Since this is a separate and fully insured program, it is not included as part of the GLI program postemployment benefit.) Retiree Health Insurance Credit (HIC) program All full-time, salaried, permanent employees of Virginia Tech are automatically covered by the HIC program. Members earn one month of service credit toward the benefit for each month they are employed and for which Virginia Tech pays contributions to VRS. The health insurance credit is a tax-free reimbursement in an amount set by the General Assembly for each year of service credit against qualified health insurance premiums retirees pay for single coverage, excluding any portion covering the spouse or dependents. The credit cannot exceed the amount of the premiums and ends upon the retiree’s death. Line of Duty Act (LODA) program All paid employees and volunteers in hazardous duty positions in Virginia localities and hazardous duty employees who are covered under the Virginia Retirement System (VRS), the State Police Officers’ Retirement System (SPORS), or the Virginia Law Officers’ Retirement System (VaLORS) are automatically covered by the LODA program. As required by statute, the VRS is responsible for managing the assets of the program. The Virginia Tech contributions are determined by the VRS actuary using anticipated program costs and the number of covered individuals associated with all participating employers. Plan Provisions PMRH program Eligible employees For a VRS retiree to participate in the Pre-Medicare Retiree Healthcare (PMRH) program, the participant must: • be a retiring state employee who is eligible for a monthly retirement benefit from the VRS, and • be receiving (not deferring) the benefit immediately upon retirement*, and • have his or her last employer before retirement be the Commonwealth of Virginia, and • be eligible for coverage (even if not enrolled) as an active employee in the State Health Benefits Program until his or her retirement date (not including extended coverage), and • have submitted within 31 days of his or her retirement date an enrollment form to his or her benefits administrator to enroll. (* A retirement contribution or leave without pay status for retirement was reported in the month immediately prior to retirement date. Some faculty members may also be eligible if they are paid on an alternate pay cycle but maintain eligibility for active coverage until their retirement date.) For an Optional Retirement Plan (ORP) retiree to participate in the PMRH program, the participant must: • be a terminating state employee who is eligible for a benefit from one of the qualified ORP vendors, and • have his or her last employer before termination be the Commonwealth of Virginia, and • be eligible for coverage (even if not enrolled) in the State Employee Health Benefits Program at the time of termination, and • meet the age and service requirements for an immediate retirement benefit under the VRS plan that would have been applicable had ORP coverage not been selected, and • enroll in the State Retiree Health Benefits Program no later than 31 days from the date that coverage (or eligibility for coverage) was lost due to termination of employ ment. (This applies to ORP terminations effective January 1, 2017, or later. For those who terminated employment prior to January 1, eligibility should be determined based on the policy in place at the time of their termination.) There are no assets accumulated in a trust to pay benefits for this program. VSDP program Eligible employees The Virginia Sickness and Disability Program (VSDP), also known as the Disability Insurance Trust Fund was established January 1, 1999 to provide short-term and long term disability benefits for non-work-related and work-related disabilities. Eligible employees are enrolled automatically upon employment. They include: • Full-time and part-time permanent salaried Virginia Tech employees covered under VRS, SPORS and VaLORS (members new to VaLORS following its creation on October 1, 1999, have been enrolled since the inception of VSDP). • State employees hired before January 1, 1999, who elected to transfer to VSDP rather than retain their eligibility to be considered for VRS disability retirement. • Virginia Tech faculty members who elect the VRS defined benefit plan.
Notes to Financial Statements
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