School board expands retiree health care proposal

The Chesterfield County School Board voted last month to expand a proposed recommendation on retiree health care benefits. The board's action means that the school system will continue to provide Medicare supplement plans at no cost to all current retirees and will also provide this benefit to future retirees who have at least 30 years of service as of Jan. 1, 2009. The school system will cap future contributions to this supplement plan at a 3 percent increase annually, which is likely to cover increases.

School board members said during their Dec. 17 meeting that they wanted to support retirees who had devoted their entire careers to Chesterfield County. The plan will cost $1.966 million more each year than the original proposal to the board.

Most future retirees who do not have at least 30 years of service as of Jan. 1, 2009, will receive a monthly contribution equal to $6 per year ($4 from the Virginia Retirement System per year of Virginia Retirement System (VRS) service and $2 from Chesterfield County Public Schools per year of Chesterfield service) once Medicare becomes their primary coverage at age 65. For example, a 65-year-old retiree with 29 years of service in Chesterfield would receive $174 a month toward the cost of a Medicare supplement plan. A typical supplement plan costs $153 per month. Any remaining funds could be applied to Medicare Part B. This $6 per year of service per month is in addition to the $40 per month that retirees currently receive toward Medicare Part D prescription drug coverage and the approximately $17 per month they receive for dental coverage.

School system employees who do not qualify for the $4 per year monthly contribution from the VRS will receive from Chesterfield County Public Schools a contribution equal to $4 per year of full-time service with Chesterfield. The contribution toward Medicare Part D prescription drug and dental coverage would continue for this group as well.

Richmond, Richmond Public Schools, Hanover County and Hanover County Public Schools do not offer these benefits. Henrico County and Henrico County Public Schools offer a monthly maximum of $3 per year of service for retirees who are not eligible for the $4 state health credit.