Policy/Memo 106r1

Number: Policy Memo 106r1
Date Issued: June 5, 1998
Date Revised: February 10, 2025
Policy File Ref: A1140
Subject: Retirement Sick Leave Credit

PURPOSE:

Codify the correct method of calculating monthly sick leave credit for New York State retirees

Background:

At the time of retirement, an eligible employee may convert their unused sick leave into a monthly sick leave credit to offset the cost of retiree health insurance.  Since the sick leave credit calculation process is not explained elsewhere, the intent of this Policy Memo is to codify this calculation process and is provided for informational purposes only. The monthly sick leave credit is calculated by the New York Eligibility and Accounting System (NYBEAS).

Policy:

To calculate sick leave credit:

Step 1. Determine the Hourly Rate of Pay (HRP). The HRP is determined by dividing total annual salary at retirement by working hours in a calendar year. This is 2088 hours for 8-hour day jobs and 1957 hours for 7.5-hour day jobs. The total annual salary includes the basic annual salary plus additional constant salary factors as defined in the State Payroll Manual, such as location pay, shift differential, geographic differential, and inconvenience pay. For employees paid on an hourly basis, use the hourly salary as the HRP.

Step 2. HRP x Hours of Unused Sick Leave* = Sick Leave Dollar Value (SLDV)

Step 3. SLDV / Life Expectancy in Months** = Monthly Sick Leave Credit (MSLC)

Step 4.  If the enrollee has elected the Dual Annuitant option, multiply the final MSLC value by 70%. If the enrollee has elected the Single Annuitant option, or has not made an election, use the full MSLC value.

Example: A 62-year-old employee worked a full-time 8-hour day job with an annual salary of $54,677 and had 300 hours of unused sick leave at retirement:

Step 1. $54,677 / 2088 = $26.19 HRP

Step 2. $26.19 x 300 (hours of sick leave) = $7,857 SLDV

Step 3. $7,857 / 269 (life expectancy in months) = $29.21 MSLC

Step 4. $29.21 x 70% = $20.45 Dual Annuitant Sick Leave Credit (if selected)

*Most New York State enrollees can apply a maximum of 200 days of sick time toward their sick leave credit calculation;1500 hours for employees that work a 7.5-hour day; 1600 hours for employees that work an 8-hour day. PBA and PIA employees can apply a maximum of 165 days toward their sick leave credit calculation. Judges, justices and certain M/Cs do not earn sick leave.

**As determined by a standardized actuarial table.