Date: March 21, 2012

Bulletin Number: 1140



New York State Health Insurance Plan (NYSHIP) Opt-Out Payments.


To inform agencies of new Earnings Codes to be used by the NYS Department of Civil Service (DCS) to process payments to employees with proof of other health insurance who elect to opt-out of State health insurance.  

Affected Employees

Employees currently enrolled in NYSHIP as of April 1 of the preceding year.   

Effective Date(s)

Payments will be made beginning in Pay Period 25L, paychecks dated 3/28/2012 (Administration) and Pay Period 25L, paychecks dated 4/5/2012 (Institution).


Pursuant to Chapter 491 of the Laws of 2011 which implemented agreements between the State of New York and CSEA, PEF, and MC and a subsequent plan by DCS, beginning January 1, 2012, employees with proof of other health insurance may elect to opt-out of State health insurance and receive equal bi-weekly payments totaling $3,000 annually for opting out of Family coverage or $1,000 annually for opting out of Single coverage. 

Civil Service will determine eligibility and control the addition and removal of employees from the program. Per DCS, the payments are taxable but are not pensionable or subject to dues. Employees who are being paid the bi-weekly payments will also have their Health Insurance deductions cancelled by DCS accordingly.

Per the Department of the Budget (DOB), the opt-out payments are not subject to the Deficit Reduction Plan.

OSC Actions

OSC has established two (2) new earnings codes to process these transactions.  The narrative description and the amount will appear on the employee’s paycheck or direct deposit advice statement.

Additional Pay Earnings Codes







Adjust NYSHIP Buyout

OSC will process a weekly input file from DCS to start, change amounts or cancel the payment.

Agencies will not have the ability to modify these transactions.

Note: these payments are loaded as Additional Pay and will appear in that area of an employee’s record.  

Enrollees participating in the Opt-Out Program will be retroactively paid any payments due in their first payment through the use of the ANB code.


Questions regarding NYSHIP eligibility and Opt-Out Payments should be directed to DCS at (518) 457-5754 (Albany Area) or 1 (800) 833-4344 (outside Albany Area).  This line is operational Monday thru Friday 9:00 am to 3:00 pm EST.