Tiered Retiree Health Insurance Rates

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. 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/institution and
  • whether they had at least five years of eligible service at a GBP-participating agency or institution as of Sept. 1, 2014. (That is, they were "grandfathered." The table below shows what types of service count toward the five years of insurance participation needed by Sept. 1, 2014 to be grandfathered.)

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 service
  • 75% with 15 years to 19 years, 11 months of service
  • 100% with at least 20 years of service or, for grandfathered retirees, with at least 10 years of service 

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 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 institution Yes
University of Texas or Texas A&M University system No (unless transferring service to ERS at retirement)
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