Retiree health insurance premiums are based on the active employee NYSHIP cost share for your salary grade, or equivalent salary grade, when you retire. Premiums are billed monthly and one month in advance.

If eligible, you may apply unused sick leave accruals to help reduce your monthly NYSHIP retiree health insurance premium.

The sick leave credit is calculated at retirement and applied to your NYSHIP retiree premium each month. Eligible employees may apply up to 200 days of unused sick leave toward this credit. 

• Sick leave may be converted to a credit only when you qualify for NYSHIP retiree health insurance and transition directly from active employee status to retiree status.
• Once the credit is applied, the credit amount remains fixed. NYSHIP premium rates may change over time.
• If the credit exceeds your monthly premium, no payment is due for that month. Unused credit is not refunded.
• If the credit is less than your monthly premium, you are responsible for paying the remaining balance.

• All outstanding timesheets must be submitted and approved for Benefit Services to process your sick leave credit.
• Using sick leave as a credit to reduce your NYHSHIP health insurance premium does not affect the value of sick leave for pension purposes, where applicable.
• If you defer NYSHIP coverage, the credit is calculated when you end the deferment and enroll in NYSHIP retiree coverage.
• If you enroll in NYSHIP as a vestee, you forfeit the opportunity to convert unused sick leave to a credit.

Before retirement, you must choose one annuitant option for your sick leave credit. An annuitant is the person who receives the credit. Your election determines how much of the credit is applied to your premium and whether it may continue for eligible dependent survivors after your death. This election affects only the use of your sick leave credit and does not determine dependent eligibility for NYSHIP coverage.

• The single annuitant option applies the full value of your sick leave credit to your monthly premium. 
• The credit ends upon your death and does not transfer to covered dependents.

• The dual annuitant option applies 70% of your sick leave credit to your monthly premium. 
• After your death, the 70% credit may continue for covered dependents who remain eligible for dependent survivor coverage. 

Once retirement is effective, your sick leave credit election is permanent and cannot be changed to another annuitant option. 

The dual annuitant option is not required for family coverage. Eligible dependents may continue enrollment after the retiree’s death, regardless of the sick leave credit option elected.