You may be eligible for State Health Plan coverage through the Retirement Systems. Your cost depends on (1) when you began state employment and (2) which health plan you select. Dependent coverage is always at full cost. Coverage begins the first of the month after your retirement date. When Medicare-eligible you must take Parts A and B to keep the same coverage. Handbook: Health Coverage in Retirement
On and after Jan. 1, 1988, at least five years of contributory (membership) service before retirement. A refund followed by rehire makes the rehire date your first-hired date.
The four premium tiers
Noncontributory (no premium)
Retiring before Jan. 1, 1985; otherwise five years of membership service; if first hired on/after Oct. 1, 2006, 20+ years of retirement service credit.
Partially contributory (partial premium)
Same eligibility text as noncontributory; which one applies depends on the health plan selected (not specified in the handbook).
One-half contributory (state pays 50% of employer premium)
First hired on/after Oct. 1, 2006 with 10 but fewer than 20 years of retirement service credit.
Fully contributory (full premium)
First hired on/after Oct. 1, 2006 with fewer than 10 years of retirement service credit.
The handbook lists 'noncontributory' and 'partially contributory' retiree health with the same eligibility, and says the cost depends on the plan you pick. It doesn't say which plan is which, or give premiums.
We show these two together as one tier.
Handbook: Health Coverage in RetirementExamples
| Who | Tier |
|---|---|
| First hired 2000, 5+ years of membership service | Noncontributory or partially contributory |
| First hired 2000, 4 years of membership service | Not eligible |
| First hired 2008, 22 years | Noncontributory or partially contributory |
| First hired 2008, 15 years | One-half contributory |
| First hired 2008, 8 years | Fully contributory |
| First hired 2021 or later, any service | Not eligible |
Our engine, from the handbook's tiers. Members hired on or after January 1, 2021: not eligible. Handbook: Health Coverage in Retirement, NOTE
What else to know
Your first-hired date is explained on which plan am I in. A refund gives up coverage (see leaving TSERS), and the Medicare rule is also on Social Security and TSERS.
- You may get State Health Plan coverage in retirement. What you pay depends on when you were first hired and which plan you choose. Dependent coverage is always at full cost.Handbook: Health Coverage in Retirement
- You need at least five years of membership service. If you were first hired on or after Oct. 1, 2006: 20+ years gets the noncontributory or partially contributory tier, 10-20 years gets one-half contributory, and under 10 years pays the full premium.Handbook: Health Coverage in Retirement
- If you were hired on or after Jan. 1, 2021, you aren't eligible for retiree medical benefits.Handbook: Health Coverage in Retirement, NOTE
- Coverage starts the first of the month after you retire. When you're eligible for Medicare, you must take Parts A and B to keep the same coverage.Handbook: Health Coverage in Retirement
Employers pay 7.69% of payroll toward retiree health from July 1, 2026. Retirement Monitor, July 2026, TSERS, ORP, CJRS, and LRS Employer Contribution Rates
Premium amounts and plan names are not in the sources (handbook points to SHPNC.org).
Questions
Do TSERS retirees get health insurance?
Many can keep State Health Plan coverage in retirement. What you pay depends on when you were first hired and which plan you choose. If you were hired on or after January 1, 2021, you aren't eligible for retiree medical benefits.
When does retiree coverage start?
The first day of the month after your retirement date. For example, retire January 1 and coverage starts February 1.
What about my spouse?
You can cover dependents, but you pay the full cost of dependent coverage.
Source: TSERS Handbook, Online handbook, pages modified Nov. 2024 - Oct. 28, 2026 (retrieved Nov. 11, 2026), page Health Coverage in Retirement. Also: Retirement Monitor, July 2026. Last reviewed .