Early retirement and health insurance


Q. My dad is getting ready to retire from the Transportation Security Administration with just over five years of service. He’s under FERS at age 57. Will he be able to continue his health insurance into retirement?

A. He doesn’t have the age and service needed to retire on an immediate annuity. Instead, he would be resigning from the government. At age 62, he could apply for a deferred annuity.

As for health insurance, when he left government, he would receive a 31-day extension of his coverage at no cost. After that, he could continue to be covered for up to 18 months at his own expense. In other words, he would pay both his share and the government share of the premiums, plus 2 percent for administrative costs. When he applied for a deferred retirement, he wouldn’t be eligible to re-enroll in the health benefits program.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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