Staying on your employer's plan
PSRS has no retiree health plan. You can stay on your last PSRS-covered employer's health plan after retirement at the same cost the employer pays for an active employee; you have one year from your last employment date to choose this. PSRS doesn't administer this law. Handbook p. 92, Employer Health Insurance Coverage; RSMo 169.590
Choosing a Joint-and-Survivor plan can matter here: if your beneficiary gets health insurance through your last employer, that coverage may continue while they get a benefit. Handbook p. 52, Advantages (Joint-and-Survivor plans) See payment plans.
Medicare
If hired before April 1986 and you haven't changed covered employers since, you don't pay Medicare tax on PSRS wages; hired or changed employers since then, Medicare tax is withheld. Handbook p. 98, Medicare Benefits for PSRS Members
More in Social Security and Medicare.
What the handbook says
- PSRS doesn't run a retiree health plan. Missouri law lets you stay on your last PSRS employer's health plan at the same cost the employer pays for active employees. You have one year from your last day of work to choose this.Handbook p. 92, Employer Health Insurance Coverage; RSMo 169.590
- If you were hired before April 1986 and haven't changed covered employers since, you don't pay Medicare tax on your PSRS wages. Otherwise Medicare tax is withheld and you earn Medicare credits.Handbook p. 98, Medicare Benefits for PSRS Members
- PSRS has no role in running or enforcing the law that lets you keep your last employer's health plan. Ask your last PSRS-covered employer what coverage is available to retirees and their families.Handbook p. 92, Employer Health Insurance Coverage
- Questions PSRS suggests asking your employer: whether you must meet conditions, or be on the plan for a set time before retiring, to keep it; whether your spouse or children can be covered, including after your death; how long coverage lasts; whether a supplement is offered once you have Medicare and which plan pays first; and whether a new insurer must keep covering you.Handbook p. 92, Employer Health Insurance Coverage
- Medicare has set enrollment periods. If you don't enroll when first eligible you may pay higher premiums later, and if you skip Medicare because you have group coverage, that insurance may not pay what Medicare would have.Handbook p. 98, Medicare Benefits for PSRS Members
- Medicare Part A is free if you have 40 Medicare units from your own work or qualify through a spouse or ex-spouse; otherwise you can pay a monthly premium for it. Everyone pays a Part B premium, taken from your Social Security benefit or billed quarterly if you don't get Social Security.Handbook p. 99, Medicare
- For questions about your Medicare entitlement, PSRS points you to Missouri SHIP, the State Health Insurance Assistance Program, at (800) 390-3330.Handbook p. 99, Medicare
Questions
Does PSRS offer retiree health insurance?
No. PSRS has no retiree health plan. Missouri law lets you stay on your last employer's plan.
What does it cost to stay on my district's plan?
The same premium the employer pays for an active employee's coverage. You pay it yourself.
How long do I have to decide?
One year from your last day of employment.
What should I ask my district about retiree coverage?
PSRS suggests asking whether you must meet conditions or be on the plan for a time before retiring, whether a spouse or children can be covered (and after your death), how long coverage lasts, whether there's a supplement once you have Medicare and which plan pays first, and whether a new insurer must keep covering you.
Do I have to pay for Medicare?
Part A is free if you have 40 Medicare units from your own work or qualify through a spouse or ex-spouse; otherwise you can buy it. Everyone pays a Part B premium. Enroll when you're first eligible, or you may pay more later.
Source: PSRS Member Handbook, 2026-2027 (as of September 2026), pp. 92, 98, 99; RSMo 169.590. Last reviewed .