Members of the New York State and Local Retirement System (NYSLRS) may receive additional service credit for their unused, unpaid sick leave at retirement. If you’re a New York State employee, or if your employer has adopted Section 41(j) for the Employees’ Retirement System (ERS) or 341(j) for the Police and Fire Retirement System (PFRS) of the Retirement and Social Security Law, you may be eligible for this credit.
How It Works*
Your unused, unpaid sick leave may add up to 165 days (7½ months) to your service credit. The credit is calculated on a 260 annual workday basis—165 days divided by 260 days equals 7½ months—so you may receive an added credit of .63 of a year.
The additional credit for most ERS members can’t exceed 165 days. Most Tier 6 ERS members can receive up to 100 days (.38 of a year) of additional credit. For State employees in certain negotiating units, up to 200 days of unused, unpaid sick leave (.77 of a year) may be credited.
Also, depending on your employer, your unused sick leave may be used to cover some of the costs of your health insurance premiums during your retirement. (Please check with your employer for more information.)
*This section was revised on 12/5/14.
If you have 130 unused, unpaid sick leave days when you retire, we would divide 130 by 260 and you would get .50 of a year, or 6 months, additional service credit.
While you may receive additional service credit for your sick leave under Sections 41(j) or 341(j), there are some restrictions. Credit for unused sick leave at retirement can’t be used to:
- Qualify for vesting. For example, if you have nine years and ten months of service credit and you need ten years to be vested, your sick leave credit cannot be used to reach the ten years.
- Qualify for a better retirement benefit calculation. For example, if you have 19¾ years of service credit, but your pension will improve substantially if you have 20 years, your sick leave credit cannot be used to reach the 20 years.
- Increase your pension beyond the maximum amount payable under your retirement plan.
- Meet the service credit requirement to retire under a special 20- or 25-year plan.