If you retire on a deferred annuity, though, your FEDVIP coverage stops and you are not eligible to enroll. Image: doomu/Shutterstock.com
By: FEDweek StaffYou generally may keep dental and/or vision coverage under the Federal Dental and Vision Insurance Program when you retire (or start receiving workers’ compensation).
Annuitants may participate in open season and make enrollment changes under the same circumstances as active employees. But there are several special considerations that differ from those applying to active employees.
Your FEDVIP coverage continues if you retire on an immediate annuity or on a disability annuity, or start receiving workers’ compensation. If you retire on a FERS Minimum Retirement Age +10 annuity that you elect to postpone, your FEDVIP coverage will stop when you separate from service. However, you may enroll again within 60 days of when your annuity starts.
If you retire on a deferred annuity, though, your FEDVIP coverage stops and you are not eligible to enroll.
Your coverage as an annuitant or compensationer continues as long as you continue receiving an annuity or compensation and pay your premiums, unless you cancel your coverage during an open season or terminate coverage due to insufficient annuity or compensation.
Note that as a retiree, you can no longer pay FEDVIP premiums with pre-tax money. Therefore, while the premium rates are the same for both active employees and retirees, the cost is effectively higher for retirees. (Losing the pre-tax advantage can increase the real cost of FEDVIP coverage by 20–30% depending on your tax bracket.)
If you retire and then go back to work for the government:
- If you have FEDVIP coverage as an annuitant, and you become reemployed in an eligible position in federal service, you must contact the plan administrator so it can send the request for allotments to your agency so your agency can start making the allotments from your pay.
- If you did not enroll in FEDVIP coverage as an annuitant and become reemployed in an eligible federal position, you have 60 days to enroll in FEDVIP.
- If you enroll as an employee the administrator will stop sending requests for allotments from your annuity.
Who Can Keep FEDVIP in Retirement
In general, you may continue FEDVIP coverage into retirement if you retire on an immediate annuity or receive a disability annuity or workers’ compensation.
However, eligibility depends on the type of retirement:
| Retirement Type | FEDVIP Eligibility |
|---|---|
| Immediate retirement | Coverage continues |
| Disability retirement | Coverage continues |
| MRA+10 (postponed) | Stops at separation; can re-enroll when annuity begins |
| Deferred retirement | Coverage ends; not eligible to re-enroll |
Important: Deferred retirees lose access to FEDVIP entirely — one of the most overlooked consequences of leaving federal service early.
How Enrollment and Open Season Work
FEDVIP enrollment and changes are made through BENEFEDS, not through your agency or retirement system.
Annuitants can make changes during the annual Federal Benefits Open Season (typically runs from mid-November through mid-December) or after qualifying life events.
How FEDVIP Fits With FEHB and Medicare
FEDVIP is designed to complement FEHB coverage, which generally offers limited dental and vision benefits.
For retirees enrolled in Medicare:
- Original Medicare provides very limited dental and vision coverage
- FEDVIP can help fill those gaps
Bottom line: Many retirees rely on FEDVIP to cover routine dental care, major dental work, and vision services not covered elsewhere.
Coverage for Family Members and Survivors
FEDVIP coverage can continue for eligible family members as long as premiums are paid. For survivors, coverage may continue if they are entitled to a survivor annuity.
To-Do Before You Retire:
- Confirm your retirement type (immediate vs deferred vs postponed)
- Review current FEDVIP plan costs and benefits
- Estimate after-tax premium impact
- Plan for re-enrollment timing if applicable
- Evaluate how FEDVIP fits into your overall health coverage strategy
FEDVIP can be a valuable benefit in retirement, but eligibility rules and tax treatment can significantly affect both access and cost.
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See also,
Calculating Service Credit for Sick Leave At Retirement
FERS Supplement vs The 10% Pension Bonus
How Your FERS, Social Security and TSP Payments Get Taxed
