Retirement Mistake: Not Planning For FEHB Early

Retirement Mistake FAQ: Not Planning for FEHB Early

 

You selected the retirement date, chose the cake flavor, and returned that beloved stapler. Retirement is almost here but just like Santa, you better check your list twice. One of the most common federal retirement mistakes that Federal Educators see is not planning for your Federal Employees’ Health Benefits (FEHB) early enough. Keep reading to make sure you don’t make this mistake.

 

As you enter retirement, you have the ability to carry one of the government’s most valuable benefits – the FEHB program coverage. To qualify, you must have been enrolled in the program for at least five consecutive years before retirement or from your first enrollment opportunity. You may also qualify for continued coverage if your five years included Tricare or CHAMPVA coverage but you must be enrolled in FEHB at the time of retirement. If none of these standards are met, contact the Office of Personnel Management for waiver options. We recommend checking your FEHB continuation eligibility several times to ensure confirmation. Should confirmation not be received, some employees choose to postpone retirement departure until they can carry coverage.

 

If you are unable to carry FEHB coverage into retirement, you will be granted a thirty-day period to decide the next steps. During this time, you can sign up for an individual policy with your FEHB carrier or extend coverage through a Temporary Continuation of Coverage (TCC). In most cases, an individual policy will offer less coverage and higher premiums. A TCC of your current plan will include coverage identical to what you had when employed. Whatever you choose, you would have to pay the entire cost of the premiums plus an additional two percent to cover administration expenses.

 

There is so much more to cover when it comes to retirement planning. Let our dedicated team at Federal Educators help you wade through the jargon so you can reap your hard-earned benefits. Schedule your complimentary virtual meeting here or give our office a call at (813) 755-7037 to get started today.