Retirees: Lapse Letters

Lapse Letters are mailed to you by SHBP when you have a missed premium deduction for any reason, even if premium deductions are being taken from your annuity. It is very important that if you receive a Lapse Letter you understand the following:

  • SHBP cannot waive your premiums and MUST collect any premiums that you miss.
  • You will have 30 days to pay from the date of your lapse letter

What If I believe the Lapse Letter is Inaccurate or I Don’t Owe a Missed Premium?

If you believe the lapse letter is inaccurate and you have no missed premiums, contact your State Retirement System to confirm that you actually received a deduction from your annuity for the time period referenced in the Lapse Letter.

If your State Retirement System confirms the missed premium was deducted, please contact SHBP Member Services via email at [email protected] or via phone at 800-610-1863 to provide this information to SHBP.

What Happens If I Ignore the Lapse Letter?

trash can with paper

If you receive a lapse letter from SHBP, and:

  1. You throw it in the trash can…
  2. You ignore it, because you believe all your premiums were paid from your annuity…
  3. You leave it sitting on the kitchen counter with all the other unopened mail that you have…

Your coverage will be permanently terminated with no right to reinstatement, unless you return to work in a benefits eligible position with an SHBP Employing Entity.