Keeping NYSHIP Coverage If You Retire Early
If you delay collecting your pension—usually to avoid permanent benefit reductions associated with early retirement—you can still have NYSHIP retiree coverage through an arrangement called constructive retirement.
In constructive retirement, the Employee Benefits Division (EBD) will bill you directly for your monthly NYSHIP premium. Your NYSHIP enrollment and benefits will be the same as for other retirees.
Qualifications for Constructive Retirement
- You must be eligible for a pension from NYSLRS, another retirement system administered by New York State or its political subdivisions, or an optional retirement plan.
- You still need to have 10 years of benefits-eligible service and active NYSHIP enrollment when you stop working.
- You and your dependents must be enrolled in Medicare if eligible. Otherwise, your overall health coverage will be reduced and your NYSHIP coverage may be canceled.
When constructive retirement begins, your NYSHIP premium will be offset by your sick leave credit (i.e., the actuarial value of your unused sick leave).
You may choose to start collecting your pension at any time. When you do, your NYSHIP premiums will be automatically deducted from your monthly pension check.
Getting Started
Talk to your health benefits administrator (HBA) or the BSC about constructive retirement if you are considering retiring early
