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FRS Health Insurance Subsidy

The FRS Health Insurance Subsidy is a free benefit that goes unnoticed for many FRS retirees, especially for retirees from the FRS Investment Plan. Many members aren't even aware that this option exists, or know how to apply for it.

The health insurance subsidy (HIS) is an additional retirement benefit applicable to both FRS Pension Plan members and FRS Investment Plan Members. The HIS is designed to help retired FRS members with offsetting some of their health insurance costs when they retire. In order to claim eligibility for the benefit the member must be a retired pension plan member, have retired and taken a distribution if a member of the investment plan, and no longer be working for an FRS covered employer.

The benefit amount is calculated as a formula of $5 per month x member's total years of service while employed. The maximum benefit amount is $150 per month. The benefit is also able to be claimed by a spousal beneficiary. Additionally, the benefit can be paid retroactively up to 6 months if the member fails to submit a complete application when eligible for claiming the benefit.

The application process is simple. The member only needs to complete the 2 page application and submit with a copy of their proof of insurance. For pension plan members the benefit will be added to their monthly pension check, for investment plan members the benefit will require the member to complete a direct deposit form for their monthly HIS benefit.