Your share from VSTRS
| If you… | VSTRS pays |
|---|---|
| At least 10 years of creditable service on July 1, 2010, or 25 years at retirement | 80% |
| Under 10 years on July 1, 2010 and 20 to under 25 years at retirement | 70% |
| Under 10 years on July 1, 2010 and 15 to under 20 years at retirement | 60% |
| Anyone else | 0% |
Of the cost of the Board's standard plan (single, or you and your spouse). 16 V.S.A. § 1944e(a)(1)
Your spouse
VSTRS pays 80% of your spouse's coverage during your life if one of these is true:
- Under 15 years on July 1, 2010 and at least 25 years at retirement
- 15 to under 25 years on July 1, 2010 and at least 10 more years by retirement
- 25 to under 30 years on July 1, 2010 and at least 35 years at retirement
- At least 30 years on July 1, 2010 and at least 5 more years by retirement
Service purchased, restored, granted or transferred on or after July 1, 2010 does not count for the spouse subsidy. 16 V.S.A. § 1944e(a)(2)
How it works
VSTRS pays the stated share of the cost of the Board's standard plan (single, or member and spouse) for retirees who elect coverage, as an equal dollar amount whatever plan is chosen. The retiree pays the rest by deduction from the allowance. The standard-plan cost is capped at the FY2003 $250 comprehensive plan, adjusted. At retirement a member can take a reduced subsidy share so that it continues for a surviving dependent beneficiary. Dental coverage is available at the retiree's full cost. Employees do not contribute to the retiree health fund. 16 V.S.A. § 1944e(a)(1)
Act 131 (2026) moves administrative and fiduciary oversight of the Retired Teachers' Health and Medical Benefits Fund to the Vermont Pension Investment Commission. The act summary describes no change to subsidy percentages. Act 131 (2026) act summary, p. 1 (Secs. 8-20)
The law sets the share VSTRS pays toward retiree health coverage, but the premiums aren't in our sources.
We show the percentages only.
16 V.S.A. § 1944e(a)What the sources say
- VSTRS pays part of the cost of the Board's standard health plan if you elect coverage. It pays 80% if you had at least 10 years of service on July 1, 2010, or retire with 25 years. Otherwise it pays 70% with 20-24 years at retirement, 60% with 15-19 years, and nothing with fewer than 15.16 V.S.A. § 1944e(a)(1)
- VSTRS also pays 80% of your spouse's coverage during your life if you meet one of four service tests tied to your service on July 1, 2010. For example, under 15 years on that date and at least 25 at retirement qualifies. Service bought or transferred on or after July 1, 2010 does not count for the spouse test.16 V.S.A. § 1944e(a)(2)
- At retirement you can take a smaller subsidy so that it continues for your surviving dependent beneficiary. Dental coverage is available, but you pay the full premium.16 V.S.A. § 1944e(e); 16 V.S.A. § 1942(p); Treasurer, Pension Group Plan Comparison (Mar. 16, 2021), p. 5
Your 2010 service matters here, and it also helps decide which pension group you are in. For the pension itself, see the benefit formula and the COLA. If you plan to go back to work, read working after retirement.
Questions
How much does VSTRS pay toward retiree health insurance?
80% of the standard plan if you had at least 10 years of service on July 1, 2010, or retire with 25 years. Otherwise 70% with 20-24 years at retirement, 60% with 15-19 years, and nothing with fewer.
Does VSTRS cover my spouse?
It can pay 80% of your spouse's coverage if you meet one of four service tests tied to your service on July 1, 2010.
Source: VSTRS Eligibility for Retirement: Group C #2 handout (Office of the State Treasurer), undated (PDF of Sept. 21, 2012), with 16 V.S.A. chapter 55 as of the 2026 session, Act 131 (2026) p. 1; 16 V.S.A. §§ 1942, 1944b, 1944e. Last reviewed .