Benefit Premium Pension Subsidy

Your retirement system may provide a payment subsidy toward insurance premiums for eligible members and dependents who elect health coverage through the ADOA Benefit Services Division. 

Your retirement system will determine if you are eligible for a premium benefit subsidy and the amount to which you may be entitled. 

Pension questions? Call your retirement system - ASRS: 602-240-2000, PSPRS/EORP/CORP: 602-255-5575. 

Retirement Systems Providing a Subsidy Retirement Systems NOT Providing a Subsidy
  • Arizona State Retirement System (ASRS)
  • Public Safety Personnel Retirement System (PSPRS)
  • Elected Officials Retirement Plan (EORP)
  • Corrections Officer Retirement Plan (CORP) 
  • University Optional Retirement Plan (UORP)
  • PSPRS or CORP members who are LTD members


Gather Key Information

To determine your basic premium benefit subsidy, you need to know:

  • Your years of credited service in your retirement system or Plan if you are an ASRS or EORP member (years of service is not a criterion for CORP and PSPRS members).
  • Your coverage type (i.e., single or family coverage).
  • Medicare eligibility.

Fill out the Determining Your Costs Worksheet

Calculating your monthly costs, premium benefit subsidy, and pension check can be simple. Each retiree’s circumstances are different, but understanding how all the pieces work together will make it an easy process. 

  1. The premium benefit subsidy for the basic program varies depending on your years of service with the State of Arizona, the retirement system you are enrolled in, and the insurance plan in which you enroll.
  2. ADOA, ASRS, and PSPRS offer retiree health insurance plans. Premiums differ depending on the plan option selected and whether you are enrolled in single or family coverage.
  3. Use this Benefit Premium Pension Subsidy Rate Chart and Worksheet to guide you in calculating your costs.

New Retirees/LTD Members

  • Depending on when your Retirement System (ASRS or PSPRS/CORP/EORP) receives your benefit elections, you may owe one or more months of health and/or dental premiums.
  • After enrolling, check your pension deductions. If the premium deduction has not occurred or the deduction is incorrect by your first full (not the estimated) pension check, immediately contact ADOA Benefit Services Division at 602-542-5008.
  • To learn about your premium calculation and your pension, see the "Calculate Your Subsidy" section above.

Type of Payments

After you fill out the worksheet listed in the "Calculate Your Subsidy" section above, you can determine what kind of payment member you are.

  • Non-Direct Pay Member
    • If the sum of your premium benefit subsidy and pension is less than or equal to the total monthly premium, you will be considered a non-direct pay member. Non-direct pay members are not billed.
  • Direct Pay Member
    • If the sum of your premium benefit subsidy and pension is greater than the total monthly premium you become a direct pay member. You will receive a billing notice regarding future premium payments.
    • If you do not receive a billing notice within 90 days, contact ADOA Benefit Services Division at 602-542-5008.  

Premium Responsibility

You are responsible for paying all premiums. Failure to keep your premiums current will result in the cancellation of your insurance coverage.

  • If you are assessed a "Medicare Part D Income Related Monthly Adjustment Amount," you will be notified by the Social Security Administration.
  • This is for your pharmacy benefit called Medicare Part D.
  • You will be responsible for paying this extra amount.
  • If you are required to pay the extra amount, and you do not pay it, you will be disenrolled from the plan and lose both your medical and pharmacy benefit.