What is the HIS?
The Health Insurance Subsidy (HIS) is a monthly benefit paid on top of your FRS pension to help offset the cost of health insurance in retirement. It is a separate benefit, not part of your pension calculation, and is funded through a separate FRS employer contribution rate. You receive HIS in addition to your monthly pension once you have applied and been approved.
Am I eligible?
You must be receiving a monthly FRS Pension Plan benefit, you must have health insurance coverage (any qualifying plan — employer-sponsored, a spouse's plan, the marketplace, or Medicare), and you must apply separately. HIS is not automatic and is not paid during DROP participation; payments begin after you complete DROP and leave employment. You are not eligible if you receive health insurance at no cost through the State of Florida under section 110.1232, Florida Statutes.
How much is it?
HIS pays $7.50 per month for each year of creditable service, with a $45/month minimum (6 years of service) and a $225/month maximum (30 or more years of service). For example: 10 years of service is $75/month, 15 years is $112.50/month, 20 years is $150/month, 25 years is $187.50/month, and 30 or more years is $225/month. Time spent in DROP does not count as additional creditable service for HIS purposes — your HIS amount is locked at the years of service you had when DROP began.
How do I apply?
Submit Form HIS-1, available at FRS.MyFlorida.com or in your Retiree Packet, along with proof of health insurance coverage to the Division of Retirement. If you submit the form within 6 months of your effective retirement date, retroactive payments are paid back to that date. After 6 months, retroactive payments are limited to a maximum of 6 months. Many retirees miss out on HIS simply because they do not realize it is a separate application — completing Form HIS-1 promptly avoids leaving money on the table.
Important considerations
HIS is funded through a separate FRS employer contribution rate and is subject to annual legislative appropriation — it is explicitly not a guaranteed benefit. HIS payments are taxable income, but may be partially or fully excludable if your health insurance premiums are deducted directly from your FRS pension payroll. Public safety officers retiring under normal retirement rules may also qualify for the Pension Protection Act (PPA) $3,000 federal tax exclusion on insurance premiums; consult IRS guidance and your tax advisor for specifics.