Premium Assistance

Reduce your monthly premium by up to $100 with Premium Assistance! PSERS provides Premium Assistance—a special financial incentive—to help eligible retirees pay for health coverage through the Health Options Program or another Commonwealth public school employer or district health plan. 

Here’s how it works:

• If you are eligible for Premium Assistance, PSERS will pay up to $100 per month toward your monthly premium.*
• Premium Assistance is not available under commercial programs like AARP or Blue Cross/Blue Shield.
• Premium Assistance is added to your monthly retirement benefit as nontaxable income. 
• If you are receiving Premium Assistance for coverage in your school employer plan and that coverage terminates, you must enroll in the Health Options Program to maintain your Premium Assistance.

Eligibility

You are eligible for Premium Assistance if you are a retiree who meets one of the following retirement type requirements:

• All classes with at least 24½ eligibility points regardless of age, or
• Class T-C and T-D: You terminate school employment at or after reaching age 62 with at least 15 eligibility points, or
• Class T-E and T-F: You terminate school employment at or after reaching age 65 with at least 15 eligibility points, or
• Class T-G and T-H: You terminate school employment at or after reaching age 67 with at least 15 eligibility points, or
• You are receiving a disability retirement benefit from PSERS.

Receiving Premium Assistance

If you meet the eligibility requirements, you can receive Premium Assistance if you have an out-of-pocket premium from a medical plan offered through the Health Options Program or your former school employer’s approved plan. 

Premium Assistance is not payable:

• for separate dental, vision or prescription drug plans, including the Medicare Rx Options offered through the Health Options Program
• for out-of-pocket premiums for a retiree’s spouse or dependents, or
• if your school employer provides coverage to you at no cost or with nontaxable contributions.

If you elect a standalone prescription drug coverage option, you are not eligible for Premium Assistance.

*The amount of the Premium Assistance benefit is determined by the Pennsylvania legislature and is subject to change.

Last Modified: March 19, 2024