Leaving a State Job

Here is information to assist you if you are separating from New York State service but you don't qualify for retiree benefits.  

Your health insurance coverage will end 28 days after the last day in the payroll period in which you worked.

If you are a NYSHIP enrollee, before leaving State service, you may be able to continue your health insurance through one of the following:

• Vestee Coverage: To be eligible, you must have ten years of State service in a benefits-eligible position, be unable to collect a pension (typically less than 55 years old), and have NYSHIP coverage in place when you leave.  You will receive Vestee information directly from the Department of Civil Service.
• COBRA: A federal law that allows you and your family to continue your health coverage. If you have less than ten (10) years of State service, you are eligible for COBRA and/or a conversion policy. COBRA allows you to continue your current health insurance for up to 36 months while paying full share payments. You will automatically receive COBRA health insurance information when your health insurance terminates. You must submit your application for COBRA coverage to the Department of Civil Service within 60 days from the date your health insurance will end, or within 60 days from the date you receive the COBRA notice.

Your dental and vision insurance coverage will end 28 days after the last day in the payroll period in which you worked.

If you are enrolled in dental or vision coverage at the time you separated from New York State service, you may be eligible for COBRA and/or a conversion policy. COBRA allows you to continue your current dental and vision benefits for up to 36 months while paying full share payments, plus a 2% administrative cost. You will automatically receive COBRA dental and vision information when your coverage terminates.

PEF, Council 82, M/C, and NYSCOPBA employees must submit your application for COBRA coverage to the Department of Civil Service, within 60 days from the date your coverage will end, or within 60 days from the date you receive the COBRA notice. CSEA and District Council 37 (DC-37) members must submit your application directly to your union. 

New York State has a two-week payroll lag, you will receive your last regular paycheck two weeks after leaving State service. If you are enrolled in NYS Payroll Online, you lose access to the system upon separation from employment.

You will receive a lump sum payment for any unused annual leave on your time record (up to 30 days), any unused non-compensatory overtime credits, and up to five days of salary withholding. You will not receive any compensation for unused personal, sick, or holiday leave.

Final timesheets must be submitted and approved by supervisors before any lump sum payments will be processed. In addition, you must remain off the payroll for two full pay periods before any lump sum payment may be processed. This means that the earliest date that you can receive your payment is the third pay period after leaving state service.

If you are vested and leave public employment, you may apply for and receive your retirement benefit when you reach age 55. Depending on your Retirement Tier, certain scenarios may result in a pension reduction. Please consult NYSLRS about your specific circumstance. General information about benefit reduction is located here.

If you are not vested, you have the option to voluntarily withdraw your membership and receive a refund or rollover your contributions to an Individual Retirement Account (IRA) or another qualified retirement plan.

If you withdraw your membership and receive a refund of your contributions, the payment is reportable for federal income tax purposes and 20% of the taxable amount is withheld. In addition, if you receive a payment before age 55 and you do not roll it over, you may have to pay a penalty tax equal to 10% of the payment. Be sure to consult your tax professional to discuss all your options.