Health Option Program (HOP)
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Am I eligible to participate if I am at the sick leave maximum and therefore don't earn sick leave?
Yes, so long as you are otherwise eligible, you can participate in HOP. If you subsequently use sick leave and drop below the maximum, you will earn sick leave at the reduced rate.
What happens if the amount of my health insurance premium is less than $310.50?
Under HOP, employees can receive a health insurance contribution credit of up to $310.50 (or the applicable part-time limit) or the annual cost of the employee share of their NYSHIP health insurance premiums, whichever is less. For example, a participating full-time employee whose annual employee share premium is $250 cannot receive a health insurance contribution credit greater than $250.
When does the program go into effect?
The Program will go into effect on January 1, 2002 for employees who choose to participate during the November 2001 election period.
How do I elect to participate?
The election period for participation during calendar year 2002 will run from November 1, 2001 through November 30, 2001. Enrollment forms are available in your agency personnel office. You must submit a completed enrollment form to your agency personnel office by the close of business on Thursday, November 30, 2001.
What if I am not on the payroll during the annual election period?
You must be on the payroll for some portion of the election period (November 1 through November 30) in order to be eligible to participate.
If HOP is renewed for subsequent calendar years, do I have to file a new election form for each year that I want to participate?
Yes. Your participation in the program automatically ends at the end of each calendar year in which the program is available.
At what rate do I earn sick leave if I elect to participate?
For employees in the ASU, ISU, OSU, DMNA, and PS&T Units and M/C and RRSU employees who are NOT in the IPP:
During each calendar year that you participate, you will earn 3 fewer days of sick leave than you currently do. For example, if you are a full-time employee who normally earns 13 days of sick leave per year, you would earn 10 days in each calendar year that you elect to participate. In such a case, if you are employed full-time in a position with a 37.5 hour workweek, your sick leave accrual rate would change to 2 3/4 hours for each qualifying biweekly pay period plus an annual adjustment of 3½ hours. If you are employed in a 40 hour per week position, your new accrual rate would be 3 hours for each qualifying biweekly pay period plus an annual adjustment of 2 hours.
Based on their payroll percentage, eligible part-time employees who elect to participate will have their sick leave accrual rate reduced by 3 prorated days per year of participation and receive a prorated credit to be applied against health insurance premiums. For example, if you are a half-time employee who works 20 hours per week, you must have a sick leave balance of 15 prorated days (60 hours) in order to participate. If you normally earn 13 prorated days (52 hours) of sick leave per year, under the HOP you would earn 10 prorated days (40 hours) of sick leave and receive a credit of up to $155.25 against the cost of the employee share of NYSHIP premiums for the calendar year in which you choose to participate.
Eligible employees participating in a VRWS program will have their annual sick leave accrual rate reduced by 3 full-time days (22.5 or 24 hours) and receive a credit of up to $310.50 to be applied against health insurance premiums. For example, an employee who would normally earn 13 days of sick leave (104 hours) working in a full-time 40 hour per week position (8 hours per day) enters into a VRWS arrangement under which she works 75 percent of a full-time schedule. Under the VRWS program, that employee would earn 13 prorated days (6 hours per day multiplied by 13 equals 78 hours) of sick leave annually by virtue of participation in VRWS. If she chose to participate in HOP, she would then forfeit 3 full-time days (24 hours) of sick leave in exchange for a credit of up to $310.50 against the cost of the employee share of NYSHIP health insurance premiums, resulting in total sick leave earnings for the year of 54 hours (78 minus 24 = 54). This forfeiture is accomplished via a reduced biweekly sick leave accrual rate (two hours per biweekly pay period and an annual adjustment of two hours).
If you move from full-time to part-time, or from part-time to full-time, or your part-time payroll percentage changes, your biweekly accrual rate and health insurance contribution credit will be adjusted accordingly.
For M/C and RRSU employees who are in the IPP:
M/C and RRSU employees covered by the IPP who elect to enroll in HOP will participate in one of two tiers; based on their status at time of enrollment. Full-time employees (including VRWS participants) will exchange 3 full-time days (22.5 or 24 hours) for a credit of up to $310.50. All part-time employees will exchange 1.5 full-time days (11.25 or 12 hours) for a credit of up to $155.25, regardless of their actual payroll percentage. An employee's exchange will be frozen for the duration of each year of participation based on status at time of enrollment for that year. Changes in employment percentage after enrollment will have no effect on the rate of forfeiture or the amount of the health insurance contribution credit available.
The required forfeiture will be assessed in two parts on each of the employees IPP grant dates during a given year of participation. For example, a full-time employee (who was full-time at enrollment) will receive 2.5 full-time days instead of 4 full-time days on each of his two IPP grant dates during the calendar year. A part-time employee in a position where the standard full-time workweek is 40 hours (who was part-time at enrollment) will have six hours subtracted from his normal sick leave accrual on each of his two grant dates for an annual forfeiture of 12 hours (1.5 full-time days).
An employee who moves between full-time and part-time after enrolling in HOP will continue to forfeit sick leave based on status at time of enrollment. For grant dates following the change in payroll percentage, the employee will receive sick leave grant days based on the new payroll percentage minus the forfeiture rate based on status at time of enrollment. For example, a full-time IPP participant on a 40-hour workweek who normally earns 32 hours on each IPP grant date elects to enroll in HOP. The employee forfeits 1.5 days (12 hours) on his first grant date, earning 20 hours instead of 32. The employee then drops to half-time and is half-time on his second grant date. As a half-time employee, he would have been credited with 16 hours on his second grant date had he not enrolled in HOP. However, since he enrolled in HOP and was full-time when he enrolled, he continues to forfeit 12 hours on his second grant date. He receives 4 hours on his second IPP grant date (16 hrs minus 12 hrs = 4 hrs).
Due to the unique manner in which IPP participants earn sick leave, re-crediting of sick leave balances will be necessary in cases where such HOP participants have their participation in the program discontinued before they have realized the full value of the health insurance contribution credit associated with any sick leave accruals they have already forfeited. However, employees who continue to participate in NYSHIP while on a preferred list following layoff will continue to receive the health insurance premium credit for the remainder of the calendar year. These employees will not have their sick leave balances re-credited.
Employees in the IPP who participate in the VRWS program are eligible to participate in HOP as full-time employees. They receive a reduced amount of sick leave on their IPP grant dates which reflects their participation in the VRWS program and their status at the time they enrolled in HOP. For example, a 40-hour workweek IPP participant on a 75% VRWS agreement normally earns 24 hours of sick leave on each IPP grant date. If this employee participates in HOP, the employee will earn 12 hours of sick leave instead of 24 on each IPP grant date.