Federal employees benefit from a robust lineup of insurance programs, many of which can extend beyond active employment—whether into retirement or after separation—provided certain requirements are met. Here’s a breakdown of how these benefits work once you step away from federal service.
Carrying FEHB Into Retirement
To keep your Federal Employees Health Benefits (FEHB) coverage in retirement:
- You need to qualify for an immediate annuity (starting within 31 days of leaving service) under the Federal Employees Retirement System (FERS).
- You must have been enrolled in an FEHB plan without interruption for the 5 years leading up to your annuity start date—or since your earliest enrollment opportunity if that’s less than 5 years. This can include time covered as a family member under another FEHB plan or TRICARE, as long as you’re enrolled in FEHB when you retire.
- Retirees who meet these criteria, along with their surviving spouses, enjoy FEHB at the same rates as current employees.
FEHB After Separation
- Post-separation, FEHB remains active at no cost for 31 days.
- You can stretch coverage up to 18 months after leaving (unless you were terminated for gross misconduct), but you’ll cover the full premium—both your share and the government’s—plus a 2% administrative charge.
Keeping FEGLI Into Retirement
To maintain Federal Employees’ Group Life Insurance (FEGLI) after retiring:
- You must retire with an immediate annuity (kicking in within 31 days of separation).
- You need continuous FEGLI coverage for the 5 years just before your annuity begins—or for all periods you were eligible if less than 5 years.
- Your FEGLI must not have been switched to an individual policy prior to retirement.
FEGLI After Separation
- You get 31 days of free FEGLI coverage following separation.
- After that, you can shift your FEGLI to an individual policy through an approved provider, no medical exam required.
Taking FEDVIP Into Retirement
If you’re enrolled in the Federal Employees Dental and Vision Insurance Program (FEDVIP) as an employee, coverage generally rolls over into retirement seamlessly. BENEFEDS syncs with your annuity system to handle premium deductions once your payroll office logs your retirement.
FEDVIP After Separation
- FEDVIP stops on the last day of the pay period when you leave federal service.
- Unlike FEHB or FEGLI, there’s no 31-day grace period or conversion option.
Flexible Spending Accounts (FSA)
FSAs are exclusive to active employees and don’t carry over into retirement or after separation.
- Health Care FSA (HCFSA) and Limited Expense HCFSA: Coverage ends the day you separate. You can claim reimbursement for expenses incurred before leaving, but not after. Leftover funds aren’t returned.
- Dependent Care FSA (DCFSA): You can tap remaining funds for qualifying expenses through the end of the calendar year or until the balance runs out, whichever happens first.
For tailored advice on managing your federal benefits during this transition, consider booking a complimentary session with a Federal Retirement Consultant®. They can help you untangle the complexities and make informed choices.
