ERS

Name

ERS

Legal name

Employees Retirement System of Texas

Website

https://ers.texas.gov

Company type

Public

Founded year

1947

Operating status

Operating

Headcount range

251–500 employees

Ownership category

akta.pro rank

Product category

Government Pension and Benefits Administration

NAICS

Health and Welfare Funds (525120), Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292), Other Insurance Funds (525190)

SIC

Accident & Health Insurance (6321), Hospital & Medical Service Plans (6324), Life Insurance (6311)

akta.pro primary industry

Self-Funded (ERISA) Employer Plans (HLAEAAAC)

akta.pro secondary industries

Benefits Administration & Enrollment Support (BPAAAIAB), Flexible Benefits Administration (FSA/HSA/HRA) (HLAEALAK)

Keywords

• Government pension benefits
• State employee retirement
• Public sector health insurance
• Defined benefit annuities
• Government benefits administration

Headquarters

HQ city

Austin

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Distribution channels2 records

Marketing channels10 records

Core offering

ERS administers retirement and health benefits for State of Texas employees, retirees, and their dependents. Its portfolio includes health insurance plans (HealthSelect of Texas, Consumer Directed HealthSelect, HealthSelect Medicare Advantage, and prescription drug programs), a defined benefit retirement plan with lifetime annuities, the Texa$aver 401(k)/457 deferred compensation program, dental and vision coverage, life and AD&D insurance, disability coverage through TIPP, and TexFlex FSAs/HSAs. ERS contracts with third-party administrators (BCBSTX, UnitedHealthcare, Express Scripts, Delta Dental, EyeMed, Empower, Alight, Inspira, Optum Bank, Minnesota Life, Beneplace) to deliver these programs.

Product overview

ERS (Employees Retirement System of Texas) is a state agency administering comprehensive employee benefits for Texas state employees, retirees, and their dependents. The portfolio includes health insurance products (HealthSelect of Texas, Consumer Directed HealthSelect, HealthSelect Medicare Advantage, and prescription drug programs), retirement plans (State of Texas Retirement defined benefit plan and Texa$aver 401(k)/457 Program), dental coverage (State of Texas Dental Choice PPO and DeltaCare USA DHMO), vision (State of Texas Vision), life and AD&D insurance, disability coverage (TIPP), and tax-advantaged accounts (TexFlex FSAs). ERS partners with third-party administrators including Blue Cross and Blue Shield of Texas, UnitedHealthcare, Express Scripts, Delta Dental, EyeMed, Empower, Optum Bank, Alight Solutions, Inspira Financial, Minnesota Life/Securian, and Beneplace to deliver these benefits.

Differentiator

Problem solved

Functional benefit

Brands

• HealthSelect of Texas: Statewide point-of-service health plan administered by Blue Cross and Blue Shield of Texas
• Consumer Directed HealthSelect
• Texa$aver 401(k) / 457 Program
• TexFlex
• Texas Income Protection Plan (TIPP)
• State of Texas Dental Choice
• DeltaCare USA DHMO
• State of Texas Vision
• HealthSelect Medicare Advantage
• HealthSelect Medicare Rx
• Texas Employees Group Benefits Program (GBP)

Products and services

• HealthSelect of Texas Statewide point-of-service health plan administered by Blue Cross and Blue Shield of Texas, providing comprehensive medical coverage for active employees and non-Medicare retirees of the State of Texas.
• Consumer Directed HealthSelect High-deductible PPO health plan paired with an optional health savings account (HSA), administered by Blue Cross and Blue Shield of Texas with HSAs through Optum Bank, for active employees seeking lower premiums and tax-advantaged savings.
• HealthSelect Medicare Advantage Plan Medicare Part C preferred provider organization (MA PPO) plan administered by UnitedHealthcare, covering medical services for Medicare-eligible State of Texas retirees and their dependents.
• HealthSelect Medicare Rx Medicare Part D prescription drug plan administered by Express Scripts Medicare (PDP) for Medicare-eligible State of Texas retirees.
• HealthSelect of Texas Prescription Drug Program Comprehensive prescription drug plan administered by Express Scripts for non-Medicare participants enrolled in HealthSelect of Texas, including mail-order pharmacy services.
• State of Texas Retirement Defined benefit retirement plan with mandatory participation for eligible State of Texas agency employees, providing stable lifetime annuity payments and service-credit-based retirement benefits.
• Texa$aver 401(k) / 457 Program Voluntary deferred compensation program administered by Empower, offering 401(k) and 457 plan options with low-fee investment choices for personal retirement savings by active and retired state employees.
• State of Texas Dental Choice Plan Self-funded Preferred Provider Organization (PPO) dental plan administered by Delta Dental (Group Number 20010), offering in-network and out-of-network dental benefits to state employees and retirees (transitioning to Humana Dental in September 2026).
• DeltaCare USA DHMO Dental Health Maintenance Organization plan administered by DeltaCare USA, providing comprehensive dental coverage through a network of contracted providers for state employees and retirees.
• State of Texas Vision Vision insurance plan administered by EyeMed Vision Care, covering eye exams, glasses, and contact lenses through a vision provider network for state employees and retirees.
• Life Insurance Life insurance program insured by Minnesota Life/Securian Financial Group, including Basic Term, Optional Term, Dependent Term, and Retiree Fixed Optional Life Insurance for active employees and retirees.
• Accidental Death & Dismemberment (AD&D) Insurance Voluntary AD&D insurance insured by Minnesota Life/Securian Financial, providing benefits for accidental death and dismemberment to active state employees.
• Texas Income Protection Plan (TIPP) Disability insurance program administered by Alight Solutions offering both short-term and long-term disability coverage to protect income for state employees.
• TexFlex Flexible Spending Accounts Tax-advantaged flexible spending accounts administered by Inspira Financial, including health care FSA, dependent care FSA, and limited-purpose FSA options for state employees.
• Discount Purchase Program Employee discount program administered by Beneplace offering discounts on various products and services with no fees or membership requirements for state employees and retirees.

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration13 records

Partnerships

Twelve partnerships are on record, tiered core, standard and minor.

• Humana DentalcoreImplementation/ SI/ Consulting Partner · 1 August 2025New third-party administrator for State of Texas Dental Choice PPO and DHMO plans starting September 1, 2026 through August 31, 2032. Awarded six-year contract in August 2025 Board meeting for large network access and broad provider availability.
• Blue Cross and Blue Shield of Texas (BCBSTX)coreImplementation/ SI/ Consulting PartnerAdministers HealthSelect of Texas (point-of-service plan), HealthSelect Secondary (for Medicare participants), and Consumer Directed HealthSelect (high-deductible PPO with HSA). Also provides HealthSelect Prescription Drug Program and manages provider networks.
• UnitedHealthcarecoreImplementation/ SI/ Consulting PartnerInsures HealthSelect Medicare Advantage Plan PPO (Medicare Part C plan) beginning January 1, 2021. Covers most medical services for Medicare-eligible retirees and dependents working with Medicare Parts A and B.
• Express Scripts / Express Scripts Medicare (PDP)coreImplementation/ SI/ Consulting PartnerAdministers HealthSelect Prescription Drug Program for non-Medicare participants and HealthSelect Medicare Rx for Medicare-eligible participants. Provides comprehensive prescription drug coverage and mail-order pharmacy services.
• Delta DentalcoreImplementation/ SI/ Consulting PartnerCurrently administers State of Texas Dental Choice Plan (PPO) and DeltaCare USA DHMO through August 31, 2026. Transition to Humana Dental begins September 1, 2026.
• EyeMed Vision Care, LLCstandardImplementation/ SI/ Consulting PartnerAdministers State of Texas Vision program, providing vision coverage including provider networks, benefits, and claims processing.
• EmpowercoreImplementation/ SI/ Consulting PartnerAdministers Texa$aver 401(k) and 457 Program, providing low-fee deferred compensation options for active and retired state employees. Manages account balances, fund transfers, and investment fund information.
• Alight SolutionsstandardImplementation/ SI/ Consulting PartnerAdministers Texas Income Protection Plan (TIPP) providing short-term and long-term disability coverage. Also administers dependent eligibility verification program.
• Inspira Financial (formerly PayFlex)standardImplementation/ SI/ Consulting PartnerAdministers TexFlex flexible spending accounts including health care, dependent care, and limited-purpose FSA options.
• Minnesota Life / Securian Financial GroupstandardImplementation/ SI/ Consulting PartnerInsures Basic Term Life, Optional Term Life, Dependent Term Life, and Accidental Death & Dismemberment (AD&D) insurance for active employees.
• Optum BankstandardImplementation/ SI/ Consulting PartnerAdministers Consumer Directed HealthSelect health savings accounts (HSAs) for participants in the high-deductible health plan option.
• BeneplaceminorImplementation/ SI/ Consulting PartnerAdministers Discount Purchase Program providing state employees and retirees discounts on various products and services with no fees or membership requirements.

Scale indicators2 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• CalPERS (California Public Employees' Retirement System): The largest U.S. public pension fund, administering retirement and health benefits for California public employees, retirees, and dependents. Structurally and functionally analogous to ERS as a state-mandated benefits system with defined benefit pensions and self-funded health plans.
• Teacher Retirement System of Texas (TRS): Texas's parallel state retirement system serving public education employees. Operates within the same Texas regulatory environment, administers defined benefit retirement and health benefits, and serves a similarly captive Texas public-sector workforce.
• CalSTRS (California State Teachers' Retirement System): California's teacher retirement system offering defined benefit pensions and health benefits to public education retirees. Comparable in mandate, scale, and benefit structure to ERS, with similar reliance on third-party administrators.
• New York State Common Retirement Fund: Manages pension and retirement benefits for New York State employees and retirees. Highly comparable to ERS as a state-level mandatory public pension system with significant AUM and defined benefit obligations.
• Florida Retirement System: Florida's state-administered pension system providing retirement benefits to state and local government employees. Operates a similar model of mandatory participation, defined benefit pensions, and supplemental deferred compensation programs.
• Pennsylvania State Employees' Retirement System (SERS): Administers retirement benefits for Pennsylvania state employees with a defined benefit pension structure. Comparable to ERS in serving a single state's public employee base with a captive, mandatory participation model.
• New Jersey Division of Pensions and Benefits: New Jersey's state-level administrator of multiple public pension plans and health benefits for state and local government employees. Functions as a direct parallel to ERS in administering retirement and health benefits under state authority.
• Washington State Department of Retirement Systems (DRS): Administers retirement benefits for Washington State public employees across multiple plan structures, including defined benefit pensions. Closely mirrors ERS's role as a centralized state retirement and benefits administrator.
• Ohio Public Employees Retirement System (OPERS): One of the largest U.S. public pension funds, providing retirement and health benefits to Ohio public employees. Highly comparable to ERS in scale, defined benefit pension structure, and captive state-employee membership.

Broad incumbents

• U.S. Office of Personnel Management (OPM) - Federal Retirement & Insurance Service: The federal-level equivalent that administers retirement (CSRS/FERS) and health benefits (FEHBP) for U.S. federal civilian employees. Broader scope and scale than ERS, but functions as the closest structural analog at the federal tier.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/ersoftexas
• LinkedInlinkedin.com/company/employees-retirement-system-of-texas

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about ERS