Tiered Retiree Insurance Contributions

  • ERS Regular State Employee Retirement and Insurance Overview (pdf)
  • ERS CPOs/COs Retirement and Insurance Overview (pdf)
  • Plan Year 2022 Rates: Tiered retiree health insurance rates (pdf) 
    • Valid September 1, 2021 – August 31, 2022 for retirees not eligible for Medicare
    • Valid January 1 - December 31, 2022 for Medicare-eligible retirees

    You need at least 10 years of service credit with an agency or institution that participates in the Texas Employees Group Benefits Program (GBP) to be eligible for GBP retiree insurance. The amount the state will contribute to your monthly health insurance premium depends on whether you had fewer than five years of eligible service at a GBP-participating agency or institution as of September 1, 2014. If you had five years by that date, you are “grandfathered” and the state will pay 100% of your health insurance premium (50% if you were a part-time employee in the last three months of your employment) when you become eligible.

    If you had fewer than five years of service as of September 1, 2014, the state’s health insurance premium contribution will be “tiered,” based on the number of years you participated in the GBP: 

    • 100% with at least 20 years,
    • 75% with 15 years to 19 years, 11 months or
    • 50% with 10 years to 14 years, 11 months.

    The chart below shows what types of service count toward the five years of insurance participation you need by September 1, 2014. 

    IMPORTANT NOTICE ABOUT INSURANCE: Health and other insurance benefits for employees and retirees are subject to change based on available state funding. The Texas Legislature determines the level of funding for such benefits and has no continuing obligation to provide those benefits beyond each fiscal year.

    Type of Participation/Service Do Years of Service Count for Grandfathering?
    ERS Yes
    Waiting Period Yes (time does not have to be purchased)
    Refunded Service Yes (time does not have to be purchased)
    Additional Service Credit (ASC) No (as member must have 10 years of service to purchase ASC)
    Military Time No (as military service is not creditable until member has five years of service)
    Proportionate Retirement Program (PRP) No
    Texas Governmental Entity (TGE) No
    Teacher Retirement System (TRS) service from a Texas Employees Group Benefits Program (GBP)-participating agency or institution Yes
    TRS service from a non-GBP participating institution (for example, an independent school district (ISD) No*
    Optional Retirement Program (ORP) service from a GBP—participating agency or institution Yes
    University of Texas or Texas A&M University system No*
    Texas Municipal Retirement System (TMRS) No (unless employed by TMRS and participating in the GBP)
    Texas County and District Retirement System (TCDRS) No (unless employed by TCDRS and participating in the GBP)
    Criminal Supervision and Corrections Department (CSCD) Yes (if eligible to participate in the GBP)
    Time covered under COBRA or as a dependent in the GBP No
    Time spent covered in the GBP as a Former Legislative Employee (FLE), Former Elected State Official (FEO), Former ERS Board of Trustees Member (FBM), Wrongfully Imprisoned Person (WIP), or Texas State Guard Volunteer (TSG). No

    *If transferring service to ERS at retirement, service will be used to determine state insurance contribution.