VRS Retiree Health Benefits: The 31-Day Enrollment Window You Cannot Miss

The single most unforgiving deadline in VRS retirement is not the application window or the service credit purchase cutoff — it is the 31-day enrollment period for the State Retiree Health Benefits Program. Miss it, and you permanently lose access to state-sponsored retiree health coverage with no second chance.

Who Gets the 31-Day Window

State employees should confirm their eligibility and enrollment steps for the State Retiree Health Benefits Program with HR or DHRM. Eligible state retirees enroll by submitting Form A10741 (State Health Benefits Plan Enrollment) within 31 days of their effective retirement date.

School division and political subdivision employees should consult local HR about employer-sponsored retiree health coverage and its enrollment rules. Coverage and eligibility depend on the employer.

What Happens if You Miss the Window

If you do not enroll within 31 days, or if you waive coverage during the window, you permanently lose eligibility for the State Retiree Health Benefits Program. There is no open enrollment period for retirees. There is no "I changed my mind" provision.

The only exception: if your spouse is an active state employee and you are covered under their plan, you can maintain continuous coverage through their enrollment. If that coverage later ends (your spouse retires, divorces you, or dies), you may be eligible to enroll in the retiree plan at that point — but only if you maintained continuous coverage. Any gap terminates your eligibility permanently.

The Health Insurance Credit Is Separate

Enrolling in the state retiree health plan is one thing. Claiming your Health Insurance Credit (HIC) is another — and many retirees confuse the two.

The HIC is a monthly tax-free reimbursement from VRS toward your health insurance premiums. Eligibility requires at least 15 years of creditable service, regardless of which plan tier you are in. The rates are $4.25 per month per year of service for state employees, $4.00 for teachers, and $1.50–$2.50 for political subdivision employees depending on the employer's election, capped at $45 or $75 per month respectively.

If VRS is deducting your health insurance premiums directly from your pension payment, the HIC is applied automatically. If your premiums are paid another way, submit Form VRS-45 (Request for Health Insurance Credit) with proof of qualifying coverage to receive the reimbursement.

The HIC applies to all eligible retirees, not just those in the state retiree health plan. Teachers and political subdivision employees who have employer-sponsored retiree health coverage or who pay for private coverage can claim the HIC as long as they meet the 15-year service threshold.

How to Prepare

Request Form A10741 from your employer's HR department or DHRM before your last day of work. Do not wait until after retirement to start looking for the form.

Submit the enrollment form within the first week of your retirement — not at day 30. Processing delays, missing documentation, or questions from the benefits office eat into your window. Give yourself margin.

Review the plan options before your retirement date so you are ready to make a selection immediately. The state plan offers multiple tiers (individual, individual + spouse, family) with varying premiums and coverage levels.

The VRS Retirement Guide maps out the health insurance enrollment timeline alongside every other retirement deadline, so nothing falls through the cracks during your first month of retirement.

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