This page is informational. Refer to the Your Coverage in Retirement publication for more detailed information, or speak with your HBA to get information specific to your situation.
If you retire and then return to a benefits-eligible job with New York State, your NYSHIP enrollment and benefit programs may change. This includes your health insurance, sick leave credit and Medicare coordination.
If you return to a position that is not benefits-eligible, either with New York State or another employer, your NYSHIP status stays the same.
Thinking about returning?
Contact your State hiring agency or call the Employee Benefits Division (EBD) to learn about how your benefits may be affected.
Already decided?
Contact your new Health Benefits Administrator (HBA). They can provide specific information about your options.
NYSHIP Coverage
If you get a State service job that is eligible for NYSHIP health benefits, you can either reenroll as an active employee or keep your benefits as a retiree.
In both cases, NYSHIP will become primary to Medicare. See below for more information.
Reenroll as an active employee
- You will pay the employee share of the health insurance premium.
- Your sick leave credit will not apply while you are an active employee.
- If you later return to retiree status, your sick leave credit (see below) will again apply to your premium.
Remain enrolled as a retiree
- You will continue paying the retiree rate share of the health insurance premium.
- You will continue to use your sick leave credit to reduce your NYSHIP premium.
Sick Leave Credit
When you retired, you may have turned your unused sick leave into a lifetime monthly credit, lowering your health insurance costs. But under certain conditions, your sick leave accruals will be restored when you return to work, regardless of your NYSHIP coverage status.
You must remain enrolled in NYSHIP to continue using the credit.
Sick Leave Calculator
Calculate the value of your unused sick leave at the time you retire and see what is automatically applied to offset your NYSHIP premium.
How Medicare is Affected
When returning to work as an active employee enrolled in NYSHIP, NYSHIP will become your primary coverage and Medicare secondary. (Exceptions apply for domestic partners over 65 and ESRD patients who have completed a coordination period.)
While working, you will no longer be reimbursed for:
- Medicare Part B premium
- Medicare Part B IRMAA
- Medicare Part A or Part B coinsurance and deductible
If your Medicare benefits are through a Medicare Advantage HMO, contact your HMO. Your coverage may be different as an active employee.
You may continue your Medicare coverage at your expense. You can also cancel Medicare Part B while you’re working, and reenroll when you retire again. Be sure to reenroll in Part B three months before you leave payroll.
Resuming Retiree Status
You may resume retiree status for NYSHIP at any time, even if you are still working. If you resume retiree status, you will pay the retiree premium rate and rate share (based on your most recent position). Your copayments, Basic Medical deductible, coinsurance maximum and other benefits may change.
Sick Leave Credit
Your sick leave credit will be recalculated if you had:
- suspended your pension when you were initially rehired
- have not started collecting your pension when you retired
- have not begun withdrawing ORP funds entitled to you
The equation used to determine your new sick leave credit depends on if your sick leave accruals were restored when you were rehired or not.
Your Coverage Information
Be sure to keep your information current. If you are returning to work, tell your new HBA that you are a State retiree changing to active status. They’ll update your enrollment record with NYSHIP or your HMO. This way, future claims will be processed correctly.
For more information, see your retiree General Information Book or contact EBD.