Federal employees enjoy access to a range of insurance benefits. Many of these benefits can continue into retirement if specific conditions are met. Below is an overview of what happens to insurance benefits after leaving federal service.
Continuing FEHB Into Retirement
You must be eligible for an immediate annuity (one that begins within 31 days of separation) under FERS.
You must have been continuously enrolled in an FEHB plan for the 5 years immediately preceding your annuity start date or since your first chance to enroll if less than 5 years. This includes coverage as a family member under another FEHB enrollment or TRICARE provided you were enrolled in FEHB at retirement.
Eligible retirees and their surviving spouses maintain FEHB coverage at the same cost as active employees.
Continuing FEHB After Separation
Coverage continues for free for 31 days after separation.
FEHB coverage can be extended for up to 18 months post-separation (unless separated for gross misconduct), but you’ll pay the full premium, both employee and government shares, plus a 2% administrative fee.
Continuing FEGLI Into Retirement
You must retire on an immediate annuity (starting within 31 days of separation).
You must have been insured for the 5 years immediately before your annuity begins—or for all periods you were eligible if less than 5 years.
Your FEGLI can’t have been converted to an individual policy.
Continuing FEGLI After Separation
Coverage continues for free for 31 days after separation.
You can convert FEGLI to an individual policy from an approved provider without a medical exam.
Continuing FEDVIP Into Retirement
If enrolled in FEDVIP as an employee, your coverage typically continues automatically into retirement. BENEFEDS coordinates with your annuity system to deduct premiums once your payroll office reports your retirement.
Continuing FEDVIP After Separation
FEDVIP ends on the last day of the pay period in which you separate.
There’s no 31-day extension or conversion option.
Flexible Spending Accounts (FSA)
FSAs are for active employees only and don’t continue into retirement or after separation.
Health Care FSA (HCFSA) and Limited Expense HCFSA:
Coverage ends on your separation date. Expenses incurred before separation are reimbursable; post-separation expenses aren’t. Unused funds aren’t refunded.
Dependent Care FSA (DCFSA):
You can use any remaining funds for eligible expenses until the end of the calendar year or depletion, whichever comes first.
Schedule a free consultation with a Federal Retirement Consultant® who can provide personalized guidance to help you navigate your complex federal benefits.
