Policy/Memo 29
Number: Policy Memo 29
Date Issued: February 1, 1989
Policy File Ref: A320
ISSUE:
Determine whether a participating agency can cancel the enrollment of all its employees and still remain in NYSHIP.
Background:
Rather than withdraw from NYSHIP, a school district submitted CNP transactions for all of its employees and retirees in order to avoid the deficit recovery charge that agencies must pay if they wish to reenter NYSHIP after having withdrawn during a period of deficit.
Policy:
When an agency cancels coverage for all of its enrollees without formally withdrawing from the program, that act of total cancellation shall be deemed a constructive withdrawal, and the agency shall be subject to deficit recoupment upon reentry.