Retiring before age 65

If you retire with at least 10 years of eligible service, you are vested for medical insurance. The date the medical insurance takes effect will be based on if you:

  • Meet the rule of 80
  • Retire from active employment
  • Retire from a non-contributing status.

Retired under age 65 by meeting the Rule of 80

If you retire by meeting the Rule of 80 and are under age 65, your insurance benefits will continue from active employment. If you did not retire from active employment, you will have a 60 day waiting period before your medical benefits will take effect, even if you meet the Rule of 80. 

Retired under age 65 directly from active employment

You become eligible for health insurance on the first of the month following your 65th birthday. You must elect health insurance before the first day of the month following your 65th birthday. If your 65th birthday falls on the first day of a month, the effective date will be the first day of the following month. Evidence of insurability (EOI) is not required.

Retired at or over age 65 from non-contributing status

You are subject to a health coverage waiting period (terminated employment prior to retirement). Your health coverage will begin on the first of the month following the 60th day of your retirement date. If the 60th day falls on the first day of a month, your coverage starts on that day. Evidence of insurability is not required

Interim Insurance

If you retire before age 65, you may be eligible for up to 18 months of COBRA coverage. In addition, a retiree and his or her dependents are eligible for GBP Interim Insurance until age 65. Premiums for Interim Insurance are much higher than COBRA premiums, and retirees and dependents who are not yet eligible for Medicare might find alternatives on the Affordable Care Act Marketplace.

Interim rates for Plan Year 2022 (September 1, 2022 - August 31, 2023) for HealthSelect of Texas® are:

  • Member Only: $1,740.98
  • Member + Spouse: $3,743.21
  • Member + Children: $3,081.51
  • Member + Family: $5,083.74