NYSHIP Sick Leave Credits After Death: Dual Annuitant vs Single Annuitant

The sick leave credit election a retiree made — often without much deliberation — determines whether their surviving spouse or dependent pays reduced health premiums for years or absorbs the full cost from the first month. Most families do not realize this choice was made at retirement, and by then it cannot be undone.

How Sick Leave Credits Work

When a New York State employee retires, their employer calculates the dollar value of their unused sick leave days (up to 165 or 200 days, depending on the employer) and records it on Form PS-410. NYSHIP uses this credit to reduce the retiree's monthly health insurance premiums — essentially a running balance that gets drawn down each month.

At retirement, the member chose one of two options for how this credit would be calculated:

Dual Annuitant: The credit is set at roughly 70% of its full actuarial value while the retiree is alive. Upon the retiree's death, whatever balance remains carries over to offset the surviving dependent's monthly health premiums.

Single Annuitant: The credit retains its full actuarial value, giving the retiree a larger premium offset each month while alive. But when the retiree dies, the remaining credit is forfeited entirely — nothing transfers to the survivor.

The Practical Impact

Consider a retiree with a sick leave credit balance of $40,000 at retirement. Under the Dual Annuitant option, the balance would be set at approximately $28,000 (70%), drawn down over the retiree's lifetime, with any remainder passing to the surviving spouse. Under the Single Annuitant option, the full $40,000 offsets the retiree's premiums, but any remaining balance disappears at death.

For a surviving spouse with no sick leave credit carryover, NYSHIP premiums for individual Empire Plan coverage must be paid in full out of pocket. That can mean hundreds of dollars per month in unexpected costs at exactly the wrong time.

Can the Election Be Changed?

No. The Dual Annuitant vs Single Annuitant election is made at retirement and is irrevocable. It cannot be changed after the fact, and it does not appear on NYSLRS statements — it is recorded with the Employee Benefits Division (EBD) at the Department of Civil Service.

If you are a surviving dependent and unsure which election was made, contact EBD at 1-800-833-4344. They can verify the sick leave credit option, the remaining balance, and what your monthly premiums will be once the three-month free coverage period ends.

The full sick leave credit mechanics and NYSHIP transition process are explained in The NYSLRS Survivor & Death Benefits Guide.

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