FRS Health Insurance Subsidy (HIS)

When FRS members think about retirement benefits, the focus is usually on the pension, DROP, or Investment Plan. But there’s another benefit many retirees don’t even realize they qualify for: the Health Insurance Subsidy (HIS).

While the monthly amount is modest, over time it can add up to thousands of dollars — and it can help cover one of the most expensive parts of retirement: health care. Unfortunately, too many retirees either forget to apply or assume it happens automatically.

Here’s what you need to know about this often-overlooked benefit.

What Is the Health Insurance Subsidy?

The HIS is a monthly payment added to your retirement check if you’re enrolled in eligible health insurance coverage. It’s not automatic — you must apply for it.

• Amount: $7.50 per month for every year of creditable service.

• Maximum: $225 per month.

• Eligibility: Must be retired, have met eligibility requirements, and enrolled in a qualifying health insurance plan.

For example:

• A member with 30 years of service would receive an extra $225 per month (the maximum).

• A member with 20 years of service and age based eligibility would receive $150 per month.

Who Qualifies?

You may be eligible if:

• You’re retired under the FRS Pension Plan or Investment Plan.

• You have at least 6 years of creditable service (or 8 years if hired after July 1, 2011).

• You have met retirement eligibility of either 30 years or service or age 62 (65 if hired after July 1, 2011) for regular risk class members.
  

   

How to Apply

The HIS doesn’t start automatically — you must apply

1. Complete the HIS application form (available from the Division of Retirement).

2. Provide documentation of your health insurance coverage (such as a premium statement or insurance card).

3. Submit your paperwork with your retirement application or afterward.

Why It Matters Over Time

While $150–$225 per month may not seem significant, over a 20-year retirement it could add up to $36,000–$54,000 in extra income. Keep in mind though that the benefit can be taxed as ordinary income when you file your taxes.

The FRS Health Insurance Subsidy is a valuable but often overlooked benefit that can help soften the blow of rising medical costs in retirement. It’s not designed to cover everything, but every dollar helps — especially when health care is often one of the biggest expenses retirees face.

If you’re planning your retirement, make sure the HIS is on your checklist. It may be your smallest FRS benefit, but over time it can make a meaningful difference.