Insurance benefits in retirement
Currently, insurance benefits through the Texas Employees Group Benefits Program (GBP) are available to many State of Texas and higher education institution retirees and their eligible dependents.
Your health insurance eligibility and the premium you will pay, if any, is based on a number of factors, including:
- your years of service,
- whether you meet the Rule of 80 and
- whether you worked full time or part time in the three months before your retirement.
Eligibility criteria based on retirement type:
- Rule of 80 and 10 years of service: If you meet the Rule of 80 and have at least 10 years of eligible service credit, you are eligible for health insurance and optional benefits and can continue your coverage without a break if you retire directly from active employment.
- Age 60 and 10 years of service (Group 1): If you reach the minimum retirement age (age 60 – Group 1) and have 10 years of eligible service credit and you retire directly from state employment, your optional benefits begin at retirement but your health insurance benefits begin at age 65.
- Age 65 and 10 years of service (Group 2, 3 and 4): If you reach the minimum retirement age (age 65 – Groups 2, 3 and 4) and have 10 years of eligible service credit and you retire directly from state employment, your optional benefits and health insurance continue at retirement.
It’s important to understand, however, that health and other insurance benefits for employees and retirees are subject to change based on available state funding. The Texas Legislature sets the level of funding for such benefits and has no continuing obligation to provide those benefits beyond each fiscal year.
| Active Employee Benefits | Retiree Benefits |
|---|---|
| Health Insurance: medical + prescription drug benefits + $5,000 Basic Term Life Insurance | Health Insurance: medical + prescription drug benefits + $2,500 Basic Term Life Insurance |
| Dental: State of Texas Dental Choice Plan or DeltaCare USA DHMO | |
| State of Texas Vision | |
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Optional Term Life Insurance: Election 1, 2, 3 or 4 times your annual salary |
Optional Term Life Insurance: Election 1 or 2 times your annual salary or $10,000 Fixed Optional Life |
| Dependent Term Life Insurance: $5,000 | Dependent Term Life Insurance: $2,500 |
| Accidental Death and Dismemberment (AD&D) | |
| Short-term and Long-term disability insurance | |
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TexFlex flexible spending accounts: health care or limited-purpose, and/or dependent care Return to work retirees with active employee benefits, can fully participate in TexFlex.
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TexFlex:
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Texa$averSM 401(k)/457 Program: Active employees are automatically enrolled in a 401(k) account at 1% their monthly salary. Changes can be made to your contribution at any time. If you return to work for a state agency or higher education institution, you can contribute to your Texa$aver account; whether you choose active employee benefits or retiree benefits.
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Texa$aver: Retirees can keep the Texa$aver account but can no longer contribute into their account. Retirees can roll over funds from other retirement accounts into their Texa$aver accounts. |
Retiring before age 65? See Health insurance benefits if you're retiring before age 65.