Tiered Retiree Health Insurance Contributions
- ERS Regular State Employee Retirement and Insurance Overview (pdf)
- ERS CPOs/COs Retirement and Insurance Overview (pdf)
- Plan Year 2025 Rates: Tiered retiree health insurance rates (pdf)
- Valid September 1, 2024 – August 31, 2025 for retirees not eligible for Medicare
- Valid January 1 - December 31, 2024 for Medicare-eligible retirees
You need at least 10 years of service credit with an agency or higher education institution that participates in the Texas Employees Group Benefits Program (GBP) to be eligible for GBP retiree insurance. Currently, the State of Texas pays at least some of the premium for retirees who are eligible for GBP health insurance. The amount the state currently contributes to a retiree's monthly health insurance premium depends on:
- how many years they worked in a benefits-eligible position at an agency or higher education institution that participates in the GBP,
- whether they worked full-time or part-time in their last three months of employment at a participating agency/higher education institution and
- whether they had at least five full years of eligible service credit at a GBP-participating agency or higher education institution as of Sept. 1, 2014.
An employee who has five full years of GBP eligible service credit as of Sept. 1, 2014 will not be subject to tiered retiree health insurance. The table below shows what types of eligible service credit that counts toward the five years of GBP participation needed by Sept. 1, 2014 to not be subject to tiered retiree health insurance premiums.
Currently, the state pays the following for retirees who worked full time their last three months of employment at a state agency/institution:
- 50% with 10 years to 14 years, 11 months of eligible service credit
- 75% with 15 years to 19 years, 11 months of eligible service credit
- 100% with at least 20 years of eligible service credit or, five or more years of GBP participation on Sept. 1, 2014
The state pays half these amounts for retirees who worked part-time before retiring.
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 toward Insurance Participation? |
|---|---|
| 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 higher education institution | Yes |
| TRS service from a non-GBP participating institution (for example, an independent school district (ISD)) | No (unless transferring service to ERS at retirement) |
| Optional Retirement Program (ORP) service from a GBP-participating agency or higher education 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 |