Policy/Memo 7r1

Number: Policy Memo 7r1
Date Issued: January 16, 1990

ISSUE:

When does NYSHIP coverage become effective for an otherwise eligible State employee if, after initial appointment, he/she is placed on leave without pay prior to satisfying the appropriate waiting period for the assigned bargaining unit while on the payroll?

Background:

On occasion, a State agency will enroll for health insurance, an employee with a regular work schedule of at least halftime and place the employee in leave without pay status before he/she satisfies the necessary waiting period. It was previously unclear if the employee must be on the payroll to make application and was also unclear whether time spent in LWOP status can be applied to satisfying the waiting period.

Policy:

The term "eligible employment status" means that an employee is on the payroll with a regularly scheduled workweek of at least halftime. A State employee must be in eligible employment status to apply for initial coverage and must complete the necessary number of days of eligible employment before coverage can go into effect.

Therefore, the following policies apply:

• An employee who is newly hired and immediately placed on LWOP is not eligible to apply for coverage until he/she is in eligible employment status.
• When a newly hired employee in eligible employment status is placed on leave without pay prior to satisfaction of the required waiting period, coverage may not begin until the employee returns to the payroll in eligible employment status and completes the additional days of employment needed to satisfy the waiting period applicable to the bargaining unit.
• An employee who works less than halftime but subsequently changes his/her schedule so that the halftime employment requirement is satisfied and enrolls for health insurance coverage will be deemed to have satisfied the required waiting period after being employed halftime or more for the period of time designated as the waiting period for the bargaining unit