The Productivity Enhancement Program (PEP) is available for 2010
to eligible CSEA, PEF, UUP, and M/C employees. This
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 period for
the 2010 program begins on October 26, 2009, and ends on
November 27, 2009. In order to participate, eligible
employees must file an
enrollment form
by November 27, 2009.
If you are participating in PEP during 2009, a new election form
must be submitted if you wish to enroll in the 2010 program.
During the calendar year 2010, full-time employees who enroll in
this program will forfeit a total of 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 from the balance
of accruals on record at the time of enrollment. In turn, they
will receive a credit of up to $500 (see Calculation of Credit)
to be divided evenly and applied toward the health insurance
premiums deducted from their biweekly paycheck issued between
December 23, 2009, and December 8, 2010.
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.
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:
- Be covered by the 2007-2011 New York State/PEF or CSEA
collective bargaining agreement; or be a Classified M/C or SUNY
M/C employee;
- Be in a position represented by PEF, CSEA, or Classified M/C
below salary grade 18 OR a UUP or SUNY M/C employee on a
calendar or college year basis with a full-time annual salary
not greater than $59,742 OR a part-time biweekly salary not to
exceed $1,166 in the 2010 plan year;
- 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 (or be on leave without pay from a position in
which the employee is normally eligible for an employer share
contribution toward NYSHIP premiums); and
- Have a minimum combined balance of annual 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, Cleveland Hall 410 by
November 27, 2009.
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 2010, 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 2010, 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 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.
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 and do not receive a
waiver of premium 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 premium contribution
credit, if any, is deferred until the employee returns to
payroll.
Insurance Issues:
An employee enrolled in PEP who moves between individual and
family coverage will have their health insurance premium
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 2010.
If you have any questions or need additional information, please
contact Human Resource Management at ext. 4821. |
