Retiring

Two Ways to Be Fully Vested

  1. You are vested if you have had CONTINUOUS coverage since 12/2001. That is a grandfathered date used by OGB.

  2. If you have NOT had coverage since 12/2001, you would have to have 240 COLLECTIVE (not continuous) months to continue your health insurance at the same rate you pay as an active employee, 75% of the monthly premium. (240 months equals 20 years)

If you do not have 240 collective months (20 years), your vestment will be calculated using the schedule below.

OGB Vesting Schedule: State Contribution
Months enrolled in OGB insurance The percentage that the state pays
240 months (20 years) 75%
180-239 months (15 - less than 20 years) 56%
120-179 months (10 - less than 15 years) 38%
0-119 months (0 - less than 10 years) 19%

Vesting Examples

Angie has had OGB insurance for 245 months. She is at full vestment using the vesting schedule, where the state will pay 75% of her premium. As an active employee paying $250.42 per month, her premium will remain at the same rate as that of an active employee covered by OGB. 

Barry has had OGB insurance for 232 months. Using the vesting schedule, he is at a 56% vestment rate. As an active employee who pays the employee-only rate of $250.42 per month, his premium will increase to $822.68 per month upon retirement because he is not fully vested. 

Camille has had the OGB insurance for 175 months. Using the vesting schedule, she is at the 38% vestment rate. As an active employee who pays the employee-only rate of $250.42 per month, her premium will increase to $1,159.24 per month upon retirement because she is not fully vested. 

Daniel has had the OGB insurance for 115 months. Using the vesting schedule, he is at the 19% vestment rate. As an active employee who pays the employee-only rate of $250.42 per month, his premium will increase to $1,514.50 per month upon retirement because he is not fully vested.

Spouse Vesting

The insurance can cover spouses upon the employee’s retirement, even if they have no prior months of coverage with the OGB insurance. Spouses can remain on your plan until your death. At that point, they can purchase the same plan they were under, using their months as a surviving spouse. They will then be subject to the same vesting schedule as employees, but their calculations will be based on the months they were enrolled before the employee’s retirement.

Here are the 2026 insurance rates for each plan for retirees at full vestment (75%) who are not on Medicare Part B:

2026 Plan Rates: Fully Vested Retirees Not on Medicare Part B
Coverage Tier Magnolia Open Magnolia Local Magnolia Local Plus Pelican HSA775 Pelican HRA1000
Employee Only $ 260.28 $ 212.22 $ 250.42 $ N/A $ 185.40
Employee + Spouse $ 845.66 $ 689.50 $ 813.30 $N/A $ 514.08
Employee + Child $ 374.72 $ 305.44 $ 360.38 $N/A $ 267.00
Employee + Children $ 374.72 $ 305.44 $ 360.38 $N/A $ 267.00
Family $ 851.22 $ 693.98 $ 821.40 $N/A $ 511.54

Resources:

Retirement Readiness Fact Sheet (PDF)

RETIREE FAQs (Word document, DOCX)