The Productivity Enhancement Program (PEP) is available for 2013
to eligible CSEA-represented, PEF-represented, and M/C employees. The program gives eligible
employees the opportunity to exchange previously accrued
annual leave (vacation) and/or personal leave in return
for a credit to be applied toward the employee’s cost of their
New York State Health Insurance on a biweekly basis.
Sick leave credits
cannot be exchanged under this program.
The enrollment for the 2013 program begins on October 22, 2012,
and ends on November 30, 2012. In order to participate, eligible
employees must file a
PEP Enrollment Form by
November 30, 2012. If you were participating in PEP during
2012, a new election form must be submitted if you wish to
enroll in the 2013 program.
In the 2013 plan year, eligible employees have the option to
exchange annual and/or personal leave for a credit.
Full-time employees in salary grades (SG) 1-17 or employees with
an annual salary rate equated to SG 1-17*, who enroll in the
program may elect to forfeit a total of either 3 days (22.5
hours for those working a 37 ½ hour week or 24 hours for those
working a 40 hour week) of annual and/or personal leave for a
PEP credit of $500, or 6 days (45 hours for those working a 37 ½
hour week or 48 hours for those working a 40 hour week) of
annual and/or personal leave for a PEP credit of $1,000.
*Full-time M/C employees earning up to $59,312.
Full-time CSEA- and PEF-represented employees in salary grades
(SG) 18-24 who enroll in the program may elect to forfeit a
total of either 2.25 days (17 hours for those working a 37 ½
hour week or 18 hours for those working a 40 hour week) of
annual and/or personal leave for a PEP credit of $500, or 4.5
days (33.75 hours for those working a 37 ½ hour week or 36 hours
for those working a 40 hour week) of annual and/or personal
leave for a PEP credit of $1,000.
Full-time M/C employees in salary grades (SG) 18-23 or employees
with an annual salary rate equated to SG 18-23* who enroll in
the program may elect to forfeit a total of either 2.25 days (17
hours for those working a 37 ½ hour week or 18 hours for those
working a 40 hour week) of annual and/or personal leave for a
PEP credit of $500, or 4.5 days (33.75 hours for those working a
37 ½ hour week or 36 hours for those working a 40 hour week) of
annual and/or personal leave for a PEP credit of $1,000.
*Full-time M/C employees earning more than $59,312 up to
$77,454.Eligible part-time employees may participate on a
pro-rated basis in accordance with their payroll percentage.
Please contact Human Resource Management (ext. 4821) if you are
employed on a part-time basis and are interested in
participating in this program.
Employees who enroll in this program will
forfeit annual and/or
personal leave from the balance of accruals on record at the
time of enrollment. In turn, they will receive a
PEP credit of up to $500 or $1000 to be divided evenly and
applied toward the employee share of health insurance premiums
deducted from their biweekly paychecks issued between January 1
- December 31, 2013.
The forfeited leave accruals will be deducted in full at the
time of enrollment. Once, enrolled, employees continue to
participate in that year unless they separate from State service
or cease to be NYS Health Insurance contract holders. Leave
forfeited under the program will not be returned, in whole or in
part, to employees who cease to be eligible for participation.
During any calendar year in which an employee participates, the
health insurance premium credit established upon enrollment in
PEP will be adjusted only if the employee moves between
individual and family coverage under the New York State Health
Insurance Program. Any changes in employment percentage will
have no impact on the health insurance premium credit.
Eligibility:
To enroll, an employee must:
- For CSEA and PEF-represented employees, be a classified
or unclassified service employee in a title at salary grade
24 or below or equated to a position at or below salary
grade 24;
- For M/C employees, be a classified or unclassified
service employee in a title at salary grade 23 or below or
equated to a position at or below salary grade 23 ($77,454).
- Be the contract holder in the New York State Health
Insurance Program (NYSHIP) at the time of enrollment.
- Be eligible to receive an employer contribution toward
NYSHIP premiums.
- Have a minimum combined balance of annual (vacation) and
personal leave of
at least 8 days after forfeiting the accruals
for full-time employees;
at least 4 days after
forfeiting the accruals for part-time
employees.
Electing to Participate:
Eligible employees may elect to participate by submitting the
PEP Enrollment Form to the Human Resource
Management Office (CLEV 410), by
November 30, 2012.
A completed copy will be returned to you once your eligibility
has been verified and the health insurance contribution credit
is determined. Employees who elect to participate will be
required to continue participation in the program through the
end of calendar year 2013, unless they separate from State
service or cease to be NYSHIP contract holders. Leave forfeited
will not be returned, in whole or in part, to employees who
cease to be eligible for participation in the program.
Calculation of Credit:
For program year 2013, the credit that will be applied to the
full time participant’s biweekly employee share premiums is
equal to $19.23 ($500 divided by 26 paychecks) or $38.46 ($1000
divided by 26 paychecks) OR the biweekly cost of the enrollee’s
employee share health insurance contribution, whichever is less.
Eligible part-time employees will receive a pro-rated credit
based on payroll/employment percentage.
Voluntary Reduction in Work Schedule (VRWS):
Employees on Voluntary Reduction in work Schedule (VRWS)
agreements who elect to participate in the program do so as
full-time employees. If eligible, they exchange the appropriate
number of full-time days of annual and/or personal leave for the
maximum health insurance premium contribution credit allowable
under the program (up to either $500 or $1,000).
Re-employed Retirees:
Retired New York State employees who have returned to work must
meet all the eligibility criteria for participation in the
program and must have the employee share of their NYSHIP health
insurance premium deducted from their biweekly paycheck.
Re-employed retirees who
retain retiree status for health insurance purposes are not
eligible to participate.
Leave of Absence:
Participants who go on sick leave at half-pay during the program
year in which they are PEP enrollees will continue to have the
health insurance credit applied to the employee share of health
insurance premiums deducted from biweekly paychecks.
PEP enrollees who go on leave without pay will continue to
participate in the program, paying the employee share of the
health insurance premium at the reduced rate. Additionally, they
may be required to pay the employer share contribution. No
portion of the PEP credit can be applied toward the employer
share of the health insurance premium. Leave forfeited under the
PEP program will not be returned to employees who receive a
waiver of premium.
PEP enrollees who go on workers’ compensation leave continue to
participate in the program and receive the health insurance
premium credit. Only that portion of the employee share premium
which is not offset by the health insurance credit, if any, is
deferred until their return to payroll.
Insurance Issues:
An employee enrolled in PEP who moves between individual and
family coverage will have their health insurance contribution
credit adjusted upward or downward as appropriate.
If both spouses are State employees covered under a single
family contract, only the contract holder who carries the family
coverage can participate in PEP. If both spouses are enrolled
contract holders, both may participate in PEP if otherwise
eligible.
Taxability:
By electing to participate in PEP, an employee reduces the amount
deducted from their biweekly paychecks to pay the employee share
of health insurance premiums. While realizing a net savings
because of the PEP credit, the amount of savings will seem less
than the full amount because health insurance premiums are
deducted on a pre-tax basis. Employees who have questions
regarding the tax implications of participation in PEP should
contact their income tax preparer.
Participation in the
Productivity Enhancement Program automatically ceases at the end
of 2013.
If you have any questions or need additional information, please
contact Human Resource Management at ext. 4821.
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