Current law provides that you may continue your health insurance coverage upon termination of employment and retirement. You must have health insurance coverage prior to retiring and must continue the same coverage at termination and retirement.
If you defer your retirement, you are not eligible for health insurance coverage unless your employer provides for insurance either through an open enrollment period for retirees or their local plan allows coverage at deferred retirement.
If you are in the Pension Plan, you may generally continue coverage whether you retire under normal retirement or early retirement. Under the Investment Plan, you may generally continue coverage if you meet the Pension Plan’s normal retirement provisions. Please check with your employer to determine your eligibility to continue this coverage.
The HIS will continue to your joint annuitant if he/she is receiving a benefit from the Pension Plan and if he/she has health coverage from some source. Under the Investment Plan only your spouse is eligible for the HIS.
Under the Pension Plan, you receive the HIS whether you take normal or early retirement. Under the Investment Plan, you receive the HIS only if you have retired and have met the Pension Plan's normal retirement age or service requirements for your class of membership. If you choose the Hybrid Option, you'll start receiving your HIS when your Pension Plan benefit payments start.
If you have health insurance coverage at the time you retire, you'll be eligible for the monthly Health Insurance Subsidy to help pay for that insurance (must be vested and meet age and/or service requirements). The subsidy is the same under the Investment Plan and the Pension Plan. The current subsidy is $5 for each year of service. The minimum monthly subsidy is $30; the maximum is $150. Your HIS service credit will be the total years of Investment Plan and Pension Plan service, up to 30 years (under current law).
Yes, as long as the monthly deduction does not exceed an amount equal to the monthly HIS benefit minus $1. For example, if the HIS benefit is $50, the deduction cannot exceed $49.