Deferring Coverage
To defer coverage, submit the NYSHIP Health Insurance Deferral Election Form (PS–406.2) to your HBA or Agency Contact before you leave payroll.
Ending Deferment
You may end deferment by sending a letter to EBD with your requested reinstatement date. That date must be the first of an upcoming month, unless you provide proof of loss of other coverage within 30 days of the event date.
Dependent Coverage and Deferment
If you had Family coverage when you deferred and then you pass away, your dependents may qualify to reenroll in NYSHIP as dependent survivors. They must write to EBD to request reenrollment in NYSHIP within 90 days of the date of your death. To qualify, they must meet the same eligibility requirements as if you had kept your coverage in retirement.
How Sick Leave is Affected
If you defer coverage, your sick leave credit is calculated at the time you end deferment and enroll as a NYSHIP retiree. When reinstated, your sick leave credit will be recalculated to a higher amount based on your new life expectancy and the same actuarial table in effect when you began deferment.
Although premiums are subject to change annually, your sick leave credit will not change.
If you wish to preserve your sick leave credit, you must submit the NYSHIP Sick Leave Credit Preservation Form (PS-410). This must be submitted before you leave payroll.
Deferring Pension
You can still qualify for NYSHIP retiree benefits, even if you defer collecting your pension from the New York State and Local Retirement System or an optional retirement plan. This is referred to as “constructive retirement,” and your premium will be billed by EBD directly.