Key Takeaways

• Your existing federal benefits like FEDVIP, FEGLI, and retirement annuities continue to work alongside PSHB in 2025.

• Understanding how each benefit interacts with your new PSHB coverage helps you avoid coverage gaps and make informed decisions.

Understanding Your Federal Benefits After the PSHB Transition

With the transition to the Postal Service Health Benefits (PSHB) Program officially underway in 2025, you might be wondering how your other federal benefits fit into the picture. Whether you’re an active USPS employee or a retiree, it’s important to know what remains unchanged, what is impacted, and how everything works together going forward.

Let’s walk through each of the core federal benefits USPS employees and annuitants typically rely on and explain how they now interact with PSHB.

How Retirement Benefits Continue to Work With PSHB

If you’re receiving a retirement annuity through the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS), you can rest assured that these payments continue without disruption. The PSHB program does not alter your annuity amount, schedule, or eligibility.

• FERS and CSRS annuities are calculated the same way in 2025 as in past years.

• Your annuity will continue to be deposited in your designated account on the regular schedule.

• If you opted for survivor benefits, they remain intact under the same provisions.

In short, your retirement income remains consistent, even though your health benefits have transitioned from FEHB to PSHB.

Thrift Savings Plan (TSP) and Its Role Post-Transition

Your Thrift Savings Plan remains unchanged. TSP is a separate retirement savings vehicle and is not impacted by PSHB. You can still:

• Make contributions if you’re an active employee.

• Choose investment options based on your retirement goals.

• Make withdrawals or request distributions if you are retired.

The only adjustment you may need to consider is how your healthcare costs under PSHB could influence your long-term financial planning and withdrawal strategy.

Federal Employees Dental and Vision Insurance Program (FEDVIP)

The good news is that your FEDVIP coverage remains completely separate from PSHB. There is no requirement to re-enroll or make any changes because of the new PSHB rollout. In 2025:

• You can still carry FEDVIP into retirement.

• Your dental and vision coverage continues as long as you pay the premiums.

• You’re eligible to make changes during the regular Open Season or due to a qualifying life event.

Even if your medical coverage has shifted to PSHB, your FEDVIP plan selections stay in place as they did under FEHB.

Federal Employees’ Group Life Insurance (FEGLI)

FEGLI is another core benefit that remains unaffected by the switch to PSHB. If you’re enrolled in FEGLI, your coverage stays the same:

• Basic and optional coverage levels are still available.

• Premiums may increase based on age brackets, but this was already the case prior to 2025.

• You maintain the ability to reduce or cancel coverage at any time.

There’s no interaction between PSHB and FEGLI, so your life insurance continues without issue.

Flexible Spending Accounts (FSAFEDS) for Active Employees

If you’re an active USPS employee using a healthcare or dependent care Flexible Spending Account (FSA), the program continues as it did under FEHB. In 2025:

• You still need to re-enroll annually during Open Season.

• The maximum contribution limit for healthcare FSAs is $3,300.

• You can carry over up to $660 in unused funds into the following year if your plan permits.

Just keep in mind that FSAs are only available to active employees—not retirees.

Postal Service Health Benefits and Medicare

If you’re Medicare-eligible, it’s especially important to understand how PSHB interacts with your existing Medicare coverage. In 2025, PSHB plans are structured to work closely with Medicare Part A and B:

• If you retired on or before January 1, 2025, you are not required to enroll in Medicare Part B.

• If you retired after that date or are newly Medicare-eligible, you generally must enroll in Medicare Part B to keep your PSHB coverage.

There are some exceptions to the Part B requirement, such as living abroad, having VA coverage, or being eligible for Indian Health Services.

Prescription drug coverage under PSHB is now integrated with Medicare Part D through an Employer Group Waiver Plan (EGWP). This means:

• You get Part D coverage automatically if you are Medicare-eligible.

• Insulin costs are capped at $35 per month.

• The new $2,000 out-of-pocket cap helps you better manage prescription costs.

If you decline Part D coverage through PSHB, you may lose your prescription benefit and could face re-enrollment restrictions.

Qualifying Life Events and Open Season: Your Opportunities to Adjust

In 2025, PSHB follows the same Open Season and qualifying life event (QLE) rules as FEHB did. This gives you flexibility:

• You can make changes during Open Season from November to December each year.

• QLEs like marriage, divorce, birth of a child, or loss of other coverage still allow mid-year changes.

• Active employees use LiteBlue to manage their benefits; retirees use KeepingPosted.org.

Be sure to review your benefits annually to ensure they still meet your needs, especially if your health or family situation has changed.

What’s Not Affected by PSHB at All

Here are benefits that are completely separate and remain untouched by the PSHB transition:

• Long-Term Care Insurance (FLTCIP): Although enrollment for new applicants is currently suspended, existing enrollees remain covered.

• Commissary and Exchange Access: Certain civilian employees may have access based on Department of Defense policy, not PSHB.

• Professional Development and Leave Policies: These are managed separately by the USPS or agency you work for.

Understanding what’s not impacted helps you avoid confusion and focus on what truly requires your attention during this shift.

Communication and Resources You Can Rely On

The transition to PSHB came with several updates and tools to help you stay informed. Be sure to:

• Read any official communication sent to you, especially your plan’s brochure and the Annual Notice of Change.

• Use online portals like LiteBlue (employees) or KeepingPosted.org (annuitants) for plan information and updates.

• Reach out to the PSHB Navigator Help Line at 1-833-712-7742 if you have questions.

Knowledge is key to ensuring you stay properly covered and avoid surprises.

Why Staying Informed About Your Other Federal Benefits Still Matters

While PSHB takes center stage in 2025, your other federal benefits haven’t gone away. They continue to form the foundation of your overall benefits package, and understanding how they interact helps you avoid missteps. Whether you’re planning to retire soon or have already transitioned into retirement, keeping all benefits in sync is essential.

Take the time to evaluate your current coverage and see how PSHB fits in—not just on its own, but in the context of your dental, vision, life insurance, retirement income, and more. These programs work best when used together, and your peace of mind depends on knowing how to navigate them effectively.

Make the Most of Your Full Benefits Package

Your PSHB coverage is only one piece of a much larger puzzle. By understanding how your other federal benefits continue to function in 2025, you can approach your health and financial security with confidence.

If you’re ever in doubt or unsure how one benefit affects another, speak with a licensed agent listed on this website for professional guidance tailored to your situation.