HB659 • 2026

State retiree health benefits program; reenrollment in program.

<p class=ldtitle>A BILL to amend and reenact § 51.1-1405 of the Code of Virginia, relating to state retiree health benefits program; reenrollment in program.</p>

Crime Labor

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Kent
Last action: 2026-02-18
Official status: Failed
Effective date: Not listed

Plain English Breakdown

The bill text specifies that a retiree who discontinues participation twice is barred from participating in the state health plan thereafter, but this detail was not included in the candidate explanation.

State Retiree Health Benefits Program; Reenrollment

This bill allows state retirees who stop participating in the health plan after retiring one chance to rejoin it within five years of their retirement date.

What This Bill Does

Allows a retired state employee who elects to participate in the retiree health benefits program but later discontinues participation one opportunity to return to participation, provided that such return occurs within five years after the date of retirement.

Who It Names or Affects

State retirees who stop participating in the retiree health benefits program.
The Virginia Retirement System, which manages these programs for state employees.

Terms To Know

Involuntarily separated: Separated from state service as a result of dismissal, requested resignation, or failure to obtain reappointment, excluding separations due to felony convictions or misconduct.
State retiree: A person who has retired from working for the state government and is eligible for retirement benefits under specified retirement systems.

Limits and Unknowns

The bill does not specify what happens if a retiree discontinues participation twice.
It only applies to retirees of the Virginia Retirement System or similar systems, not all state employees.

Bill History

2026-02-18 House
Left in Committee Appropriations
2026-02-02 House
Fiscal Impact Statement from Department of Planning and Budget (HB659)
2026-02-02 Compensation and Retirement
Subcommittee recommends laying on the table (5-Y 2-N)
2026-01-29 House
Fiscal Impact Statement from Department of Planning and Budget (HB659)
2026-01-22 Compensation and Retirement
Assigned HAPP sub: Compensation and Retirement
2026-01-21 Finance
Referred from Finance and referred to Appropriations (Voice Vote)
2026-01-13 House
Prefiled and ordered printed; Offered 01-14-2026 26104915D
2026-01-13 Finance
Referred to Committee on Finance

Official Summary Text

State retiree health benefits program; reenrollment in program.
Allows a state retiree who elects to participate in the state retiree health plan but later discontinues participation one opportunity to return to participation in the plan, provided that such return to participation occurs within five years after the date of such employee's retirement. Under current law, a state retiree who elects to participate in the state retiree health plan but later discontinues participation is barred from participating in the plan.

Current Bill Text

Read the full stored bill text

A BILL to amend and reenact §
51.1-1405
of the Code of Virginia, relating to state retiree health benefits program; reenrollment in program.

Be it enacted by the General Assembly of Virginia:

1. That §
51.1-1405
of the Code of Virginia is amended and reenacted as follows:

§
51.1-1405
. Participation in the state retiree health benefits program.

A. As used in this section, unless the context requires a different meaning:

"Involuntarily separated" means separated from state service as the result of any dismissal, requested resignation, or failure to obtain reappointment, excluding a separation resulting from a conviction for a felony or crime involving moral turpitude or dishonesty or a separation related to the job performance or misconduct of the state employee.

"Retiree health benefits program" or "program" means the plan for providing health insurance coverage for retired state employees provided pursuant to subsection E of §
2.2-2818
.

"State employee" means the same as that term is defined in §
2.2-2818
.

"State retiree" means a state employee retired under the Virginia Retirement System, State Police Officers' Retirement System, Judicial Retirement System, Virginia Law Officers' Retirement System, or any retirement system authorized pursuant to §
51.1-126
,
51.1-126.5
, or
51.1-169
who is eligible to receive a monthly retirement annuity from that retirement system.

B. A state retiree shall be eligible to participate in the retiree health benefits program only if he makes an election to participate in the program within 31 days following the date of termination of employment with the Commonwealth. A retired state employee who fails to elect to participate in the state health plan within 31 days of the effective date of retirement
, or who, once having elected to participate, discontinues participation,
is barred from participating in the state health plan thereafter.
A retired state employee who, once having elected to participate
in the state health plan
, discontinues participation shall be allowed one
additional
opportunity to
elect to participate in the state health plan
, provided that such election occurs within five years
after such employee's date of retirement
.
Any such
retired
employee who
, twice having elected to participate
in the state health plan
, discontinues participation
is barred from participating in the state health plan thereafter
.

C. Any state retiree who was involuntarily separated who
,
on July 1, 1999, is participating in the retiree health benefits program and is receiving monthly retirement annuity payments may elect, by notifying the Virginia Retirement System and the Department of Human Resource Management before September 1, 1999, to cease receiving monthly retirement annuity payments until reapplying for such benefits at a later date and to continue participation in the retiree health benefits program.