TexFlexSM Flexible Spending Accounts for Retirees

If you are participating in a TexFlex dependent care and/or health care or limited-purpose flexible spending account (FSA) when you retire, your FSA(s) will be closed on your last day of employment. You can submit claims only for expenses you incurred before you ended employment. Any eligible expenses you incur after retirement will not be reimbursed unless you continue participation in your health care or limited-purpose FSA through COBRA. You cannot continue a dependent care FSA as a retiree, even through COBRA. 

Whether or not you continue participation through COBRA, your TexFlex debit card will be deactivated on the last day of month your employment ends. After that, you can file claims for reimbursement by fax or mail, on the TexFlex website, or through the Inspira Mobile app.

Returning to work

If you return to work at a state agency or higher education institution that participates in the Texas Employees Group Benefits Program (GBP), you can participate in TexFlex by electing active employee benefits. If you return in the same plan year (Sept. 1 – Aug. 31) that you retired and you had a TexFlex account during that plan year, be sure to tell your employer you were enrolled in a TexFlex FSA earlier in the plan year.