The Dual Annuitant Option
When you retire, your unused sick leave is converted into a sick leave credit and applied to offset your monthly retiree premium.
To estimate how much you’ll save, use the Sick Leave Credit Calculator or speak with your health benefits administrator (HBA). Your sick leave credit won’t change unless you retire from benefits-eligible service again.
Annuitant Options
Before you retire, think about which annuitant option best suits your family’s needs.
- The single annuitant option applies the full value of your sick leave credit to your premiums. However, your dependent survivors won’t be able to use your sick leave credit after your passing.
- The dual annuitant option allows your dependent survivors to use your sick leave credit in the event of your death. However, this option permanently reduces your sick leave credit to 70% value—before and after your passing.
Dependent survivors may use the credit as long as they remain enrolled in dependent survivor coverage. Spouses and domestic partners remain eligible until their own passing. Children usually become ineligible at age 26.
Enrolling in an Annuitant Option
If you want to enroll in the single annuitant option, you don’t have to do anything—you’ll automatically be enrolled when you retire.
If you want to enroll in the dual annuitant option, you need to submit the NYSHIP Sick Leave Credit Option Election Form (PS-405) to your HBA prior to your last day on payroll.
Things To Consider
Here’s another way to think about this.
Using the full value of your sick leave credit only during your lifetime, but not after your passing.
OR
- Using your sick leave credit at 70% value both during your lifetime and while your dependent survivors are NYSHIP-eligible.
The choice is up to you—but, once you retire, you can’t change your decision.
Here are a few more things to consider:
- Estimate how much you expect to save on premiums from the full credit value during your lifetime vs. the partial credit value during your lifetime and your dependent survivors’ enrollment. Ask your HBA for help.
- If you only have one dependent survivor, they will be enrolled in Individual coverage upon your passing—meaning their premium will be reduced regardless of your annuitant option.
- If the Individual premium is less than your reduced-value sick leave credit, your dependent survivor won’t receive compensation for the difference.
- If you have multiple dependent survivors, they will normally keep Family coverage (although each of them maintains their own right to NYSHIP coverage).
- If you have no dependents at the time of your passing, the dual annuitant option is of no benefit. However, as the annuitant decision is not changeable, there are risks if you choose the single option and your family changes:
- If you expect to not have dependents, and you add dependents later, they will not be able to use your sick leave credit.
- If you expect your dependent(s) to predecease you, and you predecease them, they will also not be able to use your sick leave credit.
- The annuitant option you pick has no effect on whether your surviving dependents will be eligible for NYSHIP coverage. Their eligibility depends on being covered on your plan at the time of your death and you keeping up with premium payments in retirement.
If you have questions about sick leave credit or the annuitant options, talk to your HBA.
