Retiree's Health Care Cost

The cost of health insurance premiums is a monthly budget item in retirement.

On this page:

Action Items
  • Estimate your sick leave credit
  • Understand your sick leave credit options
  • Review your health insurance options and costs

The Cost of Retiree Health Insurance Premiums

Your cost for retiree coverage will be the current employee rate charged on a monthly basis.

Reducing Your Cost With Your Sick Leave Credit

Unused sick leave accruals, up to a maximum of 200 days, are converted to a lifetime monthly credit towards the cost of your retiree health insurance. The calculation is based on your age, salary and sick leave accruals at the time of retirement.

  • Sick leave accruals are converted to a credit only when your status goes directly from active to retiree.
  • The same credit is applied every month to your health insurance premium. Your sick leave credit will always be the same while health insurance premiums may increase.
  • If the credit is more than your premium, you pay nothing. There are no refunds for credit that is not used. If the credit is less, you pay the balance.

Estimate Your NYSHIP Retiree Costs

Sick Leave Credit Options

You must choose one anuitant option prior to your retirement. The option that you choose only affects your sick leave credit. It does not affect eligibility for dependents to remain covered under your retiree plan.

Single Annuitant

  • This option provides you with the full credit value.
  • The credit ends upon your death. If you predecease your covered dependents, their coverage will continue but the credit will be lost.
  • If you only have one dependent on your plan at your death, their cost will reduce to a single survivor benefit premium.

Dual Annuitant

  • This option provides you with 70% of the full credit value.
  • The credit passes to your covered dependents after your death.
  • If you have family coverage, you are not required to choose this option.

Contact the Benefits Team

The State Benefit Services Team is available to answer your questions. Use our contact information below to access all team members for the fastest response.

  • avatar.

    UB HR Benefits

    State Benefit Services

    Phone: 716-645-7777


Department Leadership

Contact our department leaders for additional assistance.

  • Lissa Jasinowski.

    Lissa Jasinowski

    Assistant Director

    Benefits and Work Life Balance

    Phone: (716) 645-4488


  • Amy Myszka.

    Amy Myszka


    Benefits and Work Life Balance

    Phone: 716-645-5357