One of the primary reasons people seek government employment is the value of federal employee benefits, especially in retirement. With defined-benefit pension plans nearly obsolete and replaced by 401(k)s, the FERS pension (annuity) provides a guaranteed, lifetime retirement income that is rare in the private sector.
The ability to continue the Federal Employees Health Benefits (FEHB) program into retirement is equally significant. The government continues to cover 72% to 75% of retirees’ FEHB premiums for life, making this benefit increasingly valuable as healthcare costs rise.
“You cannot change your FEHB plan at retirement as it is not considered a qualifying life event.”
Government Contribution to FEHB Premiums (2024)
Monthly Contributions: According to the OPM, the maximum government contribution for 2024 is $588.10 per month for Self Only, $1,270.75 for Self Plus One, and $1,400.06 for Self and Family plans. These contributions result in significant yearly savings on healthcare premiums for retirees.
Payment Method: In retirement, your portion of the FEHB premium is paid with after-tax income, deducted from your monthly annuity over 12 payments.
Rules for Continuing FEHB in Retirement
To continue FEHB into retirement, you must retire with an immediate annuity and have been continuously enrolled in any FEHB plan (not necessarily the same one) for the five years immediately preceding retirement. If enrolled for fewer than five years, coverage must have been continuous since your first enrollment opportunity. TRICARE coverage can count, provided you are enrolled in FEHB at retirement.
FAQs About FEHB in Retirement
Changing FEHB Enrollment: You cannot change your FEHB plan at retirement as it is not considered a qualifying life event (QLE). Changes can only be made during the annual Open Season from November to December.
Re-enrollment After Cancellation: If you cancel your FEHB enrollment as a retiree, you cannot re-enroll.
Family Member Coverage: Family members can continue FEHB coverage if you were enrolled in a Self Plus One or Self and Family plan at the time of your death, and at least one family member is entitled to a survivor annuity under FERS/CSRS.
For more information, download FEHB Fast Facts.
