Civilian Military Retirees Are Often Overlooked—But These 2025 Benefit Changes Could Work in Your Favor

Key Takeaways

• Civilian military retirees in 2025 are gaining access to improved retirement tools, cost-saving health benefit adjustments, and digital processing upgrades that could help streamline retirement planning.

• While some changes may seem minor, understanding how they align with your eligibility and retirement timeline can lead to significant advantages.

Who Are Civilian Military Retirees?

You may have spent your career supporting national defense from behind the scenes. Civilian military retirees are federal employees who worked within military institutions, such as the Department of Defense (DoD), Veterans Affairs (VA), or other branches of the U.S. Armed Forces. Unlike uniformed service members, you were never enlisted but played a critical role in maintaining military operations. As such, your retirement and benefits system may differ from active-duty personnel—and is often less visible in public discussions.

If you retired under FERS or CSRS after serving within these institutions, 2025 brings new updates that deserve your attention.

1. OPM’s Retirement System Is Now Fully Online

Starting July 15, 2025, the Office of Personnel Management (OPM) has launched its fully online retirement processing system. This is a major change from the long-standing paper-based process. You can now:

• Submit retirement applications electronically.

• Track application status in real time.

• Receive alerts about missing documents or updates.

While processing times remain between 60 and 90 days, the transparency and user-friendliness of the new system offer a better experience for retirees like you who have historically waited in uncertainty.

2. Medicare Coordination Becomes More Integral

If you’re age 65 or older or turning 65 this year, Medicare is likely already part of your planning. But in 2025, coordinating Medicare with FEHB has become even more essential.

Key updates:

• The standard Medicare Part B premium in 2025 is $185 per month.

• FEHB plans often waive or reduce cost-sharing (like deductibles and coinsurance) if you enroll in both FEHB and Medicare Part B.

• Many civilian military retirees now use Medicare as their primary payer and FEHB as secondary to reduce out-of-pocket costs.

It is critical to review your plan brochures and benefit coordination rules. Some FEHB plans offer incentives or reimbursements when you enroll in Medicare Part B, though you must read your plan materials carefully.

3. Long-Term Care Insurance Still Unavailable for New Enrollees

If you were considering coverage under the Federal Long-Term Care Insurance Program (FLTCIP), 2025 continues the suspension that began in 2022. You cannot apply for new FLTCIP coverage this year.

However, if you already had an active policy before the suspension, your coverage remains unaffected as long as you continue premium payments. There is no announced end date to this suspension, so alternative private options may be worth exploring with a licensed professional.

4. Thrift Savings Plan (TSP) Contribution and Withdrawal Updates

As a retiree, you’re likely no longer contributing to the TSP, but understanding the withdrawal and RMD landscape in 2025 is important.

2025 Key Figures:

• The Required Minimum Distribution (RMD) age remains at 73 for most retirees.

• TSP participants aged 60–63 can take advantage of the higher Super Catch-Up contribution of $11,250 if they are still working.

• TSP now allows greater flexibility in installment withdrawals, including monthly, quarterly, or annual payments that you can start, stop, or change at any time.

If you plan to roll over your TSP funds or begin structured withdrawals, be sure to consider the tax impact and long-term sustainability of your distribution strategy.

5. Social Security Benefits Adjusted After WEP and GPO Repeal

One of the most significant changes in 2025 is the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) under the Social Security Fairness Act, effective January 5, 2025.

If you were impacted by WEP in the past due to your CSRS pension, you may now see a monthly increase of up to $360 on average. For those affected by GPO, especially surviving spouses, increases are averaging between $700 and $1,190 per month.

You are also eligible for retroactive benefits dating back to January 2024. To ensure you’re receiving the full amount, review your benefit statement through your mySocialSecurity account or contact a licensed professional for help assessing your new eligibility.

6. Survivor Benefits Rules Remain Strict

As a civilian military retiree, your survivor elections matter more than ever. If you elected a survivor annuity under FERS or CSRS, your spouse may continue to receive health coverage under FEHB only if:

• You elected a survivor benefit at retirement.

• Your spouse is enrolled in your Self Plus One or Self and Family plan at the time of your death.

No changes in 2025 have eased these requirements. Failing to properly elect survivor coverage still results in a complete loss of FEHB eligibility for your spouse. This makes it vital to double-check your retirement paperwork and annual FEHB plan enrollments.

7. FEHB Premiums Increased Sharply in 2025

While you may have already noticed this in your pension deduction, FEHB premiums rose by an average of 13.5% for enrollees in 2025. Government contributions remain around 70%, but the rising cost can erode your fixed retirement income.

Here’s what you should consider:

• Review your current plan and compare it with lower-cost FEHB options.

• Evaluate whether your medical needs justify higher premiums.

• Consider shifting to a high-deductible FEHB plan with a Health Savings Account (if under age 65 and not enrolled in Medicare).

Annual Open Season from November to December is your opportunity to make changes. Take this window seriously to avoid paying more than you need.

8. Access to Commissary and Base Facilities Remains Restricted

If you were hoping for expanded access to military facilities like commissaries or exchanges, 2025 policy updates remain unchanged for most DoD civilian retirees. While some pilot programs exist, general access is still limited to:

• Retired military service members

• Medal of Honor recipients

• Eligible caregivers and dependents

Check with your installation to see if any new pilot access programs are being tested locally, but do not assume eligibility without confirmation.

9. Disability Retirement and Reemployment Reminders

If you retired under FERS Disability Retirement, remember that your annuity is subject to annual earnings tests until age 62. In 2025:

• If your earnings from reemployment exceed 80% of your pre-disability salary, your annuity may be terminated.

• If you are reemployed by the federal government, your annuity may be offset by your salary.

The OPM portal now provides income verification tools and automated reminders to help avoid overpayments. It is crucial to report income accurately to avoid annuity suspension or payback obligations.

10. FEDVIP Dental and Vision Benefits Continue Unchanged

Your eligibility for the Federal Employees Dental and Vision Insurance Program (FEDVIP) remains unchanged in 2025. As a civilian military retiree:

• You can enroll during Open Season or after a qualifying life event.

• Premiums are paid entirely by you (no government contribution).

• Plans are available nationwide with varying levels of coverage.

Unlike FEHB, there were no major cost or structure changes in FEDVIP this year. However, evaluating plans each Open Season can still help ensure you’re not overpaying or under-insured.

Don’t Let 2025 Opportunities Pass You By

If you’re a civilian military retiree, you are part of a vital but often overlooked community. While your benefits may not receive as much public attention as those of uniformed military retirees, the 2025 updates present meaningful opportunities. From enhanced retirement processing to expanded Social Security benefits and more efficient Medicare coordination, these changes deserve your full awareness.

Take time now to:

• Review your retirement and healthcare paperwork

• Adjust your TSP or FEHB strategy based on new figures

• Verify your Social Security benefits if you were impacted by WEP or GPO

To make the most of these opportunities and avoid costly mistakes, reach out to a licensed professional listed on this website. A one-time review could help protect the benefits you worked decades to earn.