A stamp with the words Sick Leave in red and two red laurels above and below it in a circle, a thermometer, and three pills.

The Accumulated Sick Leave Credit Conversion Program allows state employees to convert unused sick leave to credits to pay for health insurance during retirement. This includes pharmacy and optional Uniform Dental benefits.

This program can be very helpful because when you retire you will pay more for health insurance. While you are working, you pay less because your employer pays most of your premium. Once you leave, you must pay the entire cost of the premium.

Who is Eligible

Most state employees are eligible for this program by meeting two requirements:

  1. They are covered by the State Group Health Insurance Program.
    • See enrollment opportunity if you are not currently enrolled.
  2. They are receiving an annuity within 30 days of retirement.

To learn other ways to qualify for this program, see the Sick Leave Credit Conversion Program (ET-4132) brochure or talk to your employer benefit specialist.

How Credits are Calculated

Formula Your unused sick leave hours x     Your highest hourly wage =     Your sick leave credit balance
Example 1,680 hours x     $22.00/hour =     $36,960.00

You may be able to get more credits if you have 15 years of continuous service or more, under the Supplemental Health Insurance Conversion Credit (SHICC) Program. For more information on SHICC, check with your employer benefits specialist.

How Credits Pay for Premiums

When you leave state employment, your employer calculates your sick leave credits and certifies the amount to ETF. You will receive a letter from ETF that has your sick leave credit balance and health plan information.

Your premiums will automatically be paid from your sick leave credit account.

When your sick leave credits run low, ETF will send you a letter and describe ways to keep your coverage.

What Credits Can Not Do

Your credits can not:

  • Be cashed out
  • Earn interest
  • Pay for supplemental benefits
  • Pay for health insurance that is not part of the State Group Health Insurance Program
  • Transfer to another person (unless you pass away)
  • Be split into two accounts

Access Plan Enrollment Opportunity

Before retirement, you may have a special opportunity to enroll in the group health insurance program's Access Plan. You must enroll by the first of the month in which you retire. Keep in mind, you may find it cheaper to enroll during open enrollment.

Escrowing Sick Leave Credits (Saving for Later)

Your sick leave credits can only pay for premiums through the State Group Health Insurance Program. If you have insurance through somewhere else, you can save your credits for future use by escrowing them. 

Escrowing Your Sick Leave Credits

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