Reply to How to value fed health insurance benefit?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Ask an HR specialist about this. I am not 100% in the details, but I know the health benefits “retirement” standard is different… you need x years in (less than the number required for pension) and you can start collecting earlier than Medicare (62.5 maybe?). Anyway, the $30k/year is about right (maybe a little high depending on your insurance), but I think you can claim your health benefits earlier than you think. [/quote]

In my experience, you need to be eligible for an immediately annuity (pension) to collect health benefits, but you do not need to maximize your pension. Depending on the year you were born and years in service, that age is around 55, with a reduction in our pension for every year you're younger than 62. Also depending on your agency and job, that age may be lower than 55 (based on years of service) because some separations can be "deemed" to be involuntary.

ACA insurance plans get much more expensive with age, I'd say $30k per person may be a little high, but a good cautious number for the future.

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Just to clarify -- you need to start taking your pension (even if reduced) and health benefits immediately upon separation.  You can't delay taking your pension and get health benefits later. Breaks in service are ok -- you can quit for another job and then go back to work for the federal government later for a short period, then retire directly and get health benefits. Just make sure you're always enrolled in FEHB while you're employed by the government.

Definitely talk to HR about this. It's complicated, and there are quite a few technicalities that can mess you up and/or help you (e.g., make sure you get credit for unused leave). Just about everyone I know has paperwork issues with retirement and the earlier you start looking at it the better, and the HR people are usually grateful when people start early and aren't panicking when they hit the inevitable bureaucratic bumps in the road.  I had worked for multiple agencies and some of my time in service wasn't even showing up in the system.  It took months to get it all straightened out. [/quote]

Worth noting that you get severely penalized for taking your pension early.  5% per year for each year under age 62 so 25% total at 57 unless MRA+30 or 60 with 20 years.

I think, but please double check, that you can postpone your FERS annuity and then reinstate your FEHB.  So for OP that would happen at age 60 for no penalty.[/quote]

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