Dear AFSPA Member:

We have received a number of questions in recent weeks from members who are facing changes in their federal employment. I wanted to take the opportunity to provide some clarity on how your health insurance coverage is affected by retirement or separation.

Moving from Active Employment to Retirement

For federal employees who are retiring, your agency will be able to confirm your eligibility to continue benefits into retirement. There are certain common conditions that must be met to carry Federal Employee Health Benefits (FEHB) coverage into retirement:

• enrollment in an FEHB plan at the time of retirement;
• enrollment in the FEHB program for five years immediately preceding retirement (TRICARE enrollment counts, though you must be enrolled in an FEHB plan at the time you retire); and
• eligibility for and election of an immediate annuity.

Because retirement involves moving from one payroll office to another, there is some behind-the-scenes paperwork, and the timing of the paperwork does not always align. Your employing agency will process a termination of your benefits under active employment, and your retirement office will process enrollment in your plan under retirement benefits. The effective date of the retirement enrollment is usually the day after the active employment termination, meaning there is no break in coverage. However, with the increased volume of retirements, the paperwork may be a bit slow to catch up to your plan.

In an urgent situation, such as an interruption in care or access to medication, please contact the Foreign Service Benefit Plan (FSBP) Enrollment and Eligibility Services (EES) Team to discuss options for resolution. Please have your retirement paperwork available when you contact EES.

AFSPA offers retirement support through our Retirement Program. We have partnered with Retire Federal to provide personalized federal employee retirement planning and counseling. To learn more, visit www.afspa.org/aip/professionalservices/#Retirement_Planning.

Separating from Federal Employment

If you are leaving federal employment, your employing agency and payroll office should process and forward paperwork to your health plan that includes your termination date. All FEHB plans, including the Foreign Service Benefit Plan, automatically extend coverage for 31 days following the termination date. There is no charge for this extension, and the coverage extends to all covered family members.

Once FSBP receives and processes termination paperwork, we automatically send a letter via email and mail to the enrollee detailing the last date of coverage. Members can use this letter for proof of a qualifying life event that may make you eligible for enrollment in a marketplace plan or other group health insurance plan. You can learn more about marketplace plans and other coverage options available at www.healthcare.gov.

Separating employees who lose FEHB coverage can enroll in Temporary Continuation of Coverage (TCC). Under this program, former employees may continue their coverage for up to 18 months following their date of separation. Enrollees in TCC are responsible for the full premium (both the employee and Government shares of the premium) and a two percent (2%) administrative charge. Click here for more information about TCC.

Support for Your Needs

This is a trying time for many members, even if you’re not facing a change in your employment. Members of the Foreign Service Benefit Plan can use their benefits to obtain the care you need for your physical and mental health. We offer a range of Mental Wellness programs, many of which are free to members. Please contact us if you have any questions.

Other AFSPA Programs

A change in your employment status does not mean that you lose AFSPA membership. While FSBP is only available to eligible Federal employees, annuitants, and TCC enrollees and family members, you can continue your membership in AFSPA regardless of your employment status. Membership is free, and for life. Beyond receiving regular updates about trends in benefits and insurance, your membership also allows you access to some of our ancillary insurance programs, such as dental insurance, life and AD&D insurance, critical illness insurance, and dental, vision, and hearing discount programs, as well as educational programs and professional services. Learn more at www.afspa.org/aip.

Thank you for your service to all of us. We are proud to serve you.

To Living and Feeling Better, 

Kyle Longton, CAE, REBC

AFSPA, CEO