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Sick Leave Insurance Program (SLIP)

The Sick Leave Insurance Program (SLIP) offers retirement-eligible employees an option for using all or part of their unused sick leave balance to pay the state share of their group health insurance premiums after they retire until they become eligible for Medicare (usually at age 65.)

Eligibility
Program Overview
Sick Leave Conversion Chart
SLIP Calculation
SLIP Calculation Example
Health Plans Available to SLIP Retirees
Managed Care Organizations (MCO) Health Plans
SLIP Premiums for 2008
SLIP Account Process
Income Tax Considerations
Double Spouse Coverage and SLIP
How To Apply for the Sick Leave Insurance Program
SLIP Forms
SLIP Coverage Ends
Deferred Compensation and SLIP
Flexible Spending Accounts and SLIP
Life Insurance and SLIP
Long Term Disability Insurance and SLIP
Things to Consider
For More Information

SLIP References

Retiree Health Insurance Flyer
Frequently Asked Questions (FAQs)

Centralized Payroll Information for SLIP Retirees

SLIP Health Insurance Premiums

2008 SLIP Health Insurance Premiums

For general information on continuing insurance benefits at retirement, review the DAS-HRE Continuing Insurance Benefits at Retirement Web site.

Eligibility

State employees eligible for the SLIP program are:

Executive branch employees represented by AFSCME
Executive branch employees represented by UE/IUP
Executive branch Non-Contract employees
Community Based Corrections employees (not administered by centralized payroll)

This program does not include:

Elected officials
Board of Regents employees
Executive branch employees represented by SPOC

Similar programs are offered to Judicial Branch and Legislative Branch state employees.

In addition to being in an eligible class of employees:

You must apply for and receive state pension benefits. If you rescind your retirement and do not receive a pension benefit, you will not be considered to have taken retirement and will not be eligible for this program.
The value of your converted sick leave balance must be greater than $2,000 PLUS the cost of at least one month of the state share of your group health insurance premium.

Program Overview

You are able to use the value of your accrued sick leave balance at the time of retirement to pay the state share of group health insurance premium. Your sick leave hours are converted into dollars based on a percentage of your sick leave hours at retirement.

Sick Leave Conversion Chart

Your accrued sick leave hours are converted into dollars based on the following table.

If the sick leave balance is:	The conversion rate is:
Zero to 750 hours	60% of value
Over 750 hours to 1,500 hours	80% of value
Over 1,500 hours	100% of value

SLIP Calculation

Following are the steps to calculate your SLIP account.

Identify the total number of hours of accrued sick leave on the last day of work.
Multiply your sick leave hours balance at retirement by your regular hourly rate of pay at retirement to get the total sick leave balance dollar value.
Subtract the $2,000.00 sick leave payout from the total sick leave balance dollar value. (You are paid up to $2,000.00 in unused sick leave on your final warrant upon retirement. )
Use the table in the previous section to determine the sick leave conversion rate. The conversion rate is based on your sick leave balance on your last day of work.
Multiply the remaining amount times the conversion rate.
The result is the SLIP account balance in dollars (not hours.)

The final calculated dollar value will be credited to your SLIP account.

SLIP Calculation Example

Below is an example of how SLIP account is calculated.

Assumption: An employee has a sick leave balance of 1,000 hours and an hourly rate of $19.25 at retirement.

Multiply the total number of sick leave hours by the regular rate of pay (1,000 * $19.25).	$19,250.00
Subtract $2,000 from the total.	-$2,000.00
Subtotal	$17,250.00
Multiply the remaining amount times the conversion rate (80% x $17,250) (Conversion rate for sick leave balance between 750 – 1,500 hours is 80%)	$13,800.00
Credited to the employee's SLIP account	$13,800.00

Health Plans Available to SLIP Retirees

You have the same health and dental plans available as a retiree as active employees. For 2008, retirees have the following health plans available.

Wellmark Blue Cross Blue Shield
Blue Access
Deductible 3 Plus
Blue Advantage
Iowa Select
Program 3 Plus
UnitedHealthCare
UnitedHealthcare Choice HMO
UnitedHealthcare Heritage Select

The same health plan provisions that govern active employees’ coverage also apply to retirees’ coverage.

For general information about State of Iowa's health insurance plans, go the DAS-HRE Health Insurance Web site.

Managed Care Organization (MCO) Health Plans

Depending upon your location, you may have a Managed Care Organization (MCO) health plan option. The state offers four MCO plans in 2008. They are:

Wellmark Blue Cross Blue Shield Blue Access
Wellmark Blue Cross Blue Shield Blue Advantage
UnitedHealthcare Choice HMO
UnitedHealthcare Heritage Select

The following map and table links indicate the counties that have adequate participating providers to offer services as noted. Please check the provider directories for any plans that interest you to ensure that there are participating doctors, specialists, labs, hospitals, clinics, etc. in your area. IMPORTANT: Services will not be paid by the carrier if you do not go to participating providers for all your health care needs.

2008 Managed Care (MCO) Service Area Map
2008 Managed Care (MCO) Service County Table

SLIP Premiums for 2008

Following is a link to the 2008 retiree health and dental premiums. The SLIP account pays the state share of the premium and you pay what active employees pay.

2008 SLIP Health Insurance Premiums

SLIP Account Process

Each month, your former department pays the state share of the selected group health insurance premium from your SLIP account.

You are responsible for any additional premiums associated with the employee share. The insurance carrier (Wellmark, UnitedHealthcare and Delta Dental) will send you an invoice each month for the employee's portion of the premium, if applicable, or you can elect to have the premium automatically deducted from your bank account.

Income Tax Considerations

The value of the state share of the premium paid from your SLIP account is not subject to federal and state income taxes. Taxes are still paid on the amount of any vacation payout along with the $2,000 of the sick leave payout.

Double Spouse Coverage and SLIP

When a husband and wife are both benefit-eligible state employees, they can elect one family health insurance plan (double spouse). The State’s contribution to double spouse family coverage is the full premium. The double spouse option is only available when both the husband and wife are active employees.

SLIP dollars can only be used by the retiree that accrued the sick leave. SLIP dollars cannot be transferred to another individual or “pooled” together, such as married state employees that retire.

If you and your spouse are covered under the double spouse option and one of you retires, the double spouse option is not available. In the case when you or your spouse retires, you and your spouse have the following options.

Both of you convert to single coverage. The spouse, who retired, would use his or her SLIP dollars to pay for state’s share of the premium.
One of you converts to single coverage and the other spouse remains with family coverage if there are other dependents. The spouse, who retired, would use his or her SLIP dollars to pay the state’s share of the premium.

If your spouse is a SLIP participant and exhausts his or her SLIP account or his or her SLIP eligibility ends, you can enroll your spouse in your coverage as an active employee.

How To Apply for the Sick Leave Insurance Program

Complete the Sick Leave Insurance Program Agreement and any other forms applicable. Submit the completed agreement and other forms to your department's Personnel Assistant prior to your retirement date.

SLIP Forms

Sick Leave Insurance Program Enrollment Form
SLIP Calculation Estimate Form (NOTE: not the official SLIP amount)
Group Insurance Direct Pay Continuation Form
SLIP Program Checklist for PAs

SLIP Coverage Ends

You are eligible to participate in the SLIP program until:

Your sick leave fund has been depleted
You die (benefits in this program are not transferable)
You become eligible for Medicare
You return to permanent state employment
You cease participation in the state group health insurance program
You fail to pay any employee share of the premium

Note: Dollars in your SLIP account are not transferable.

Deferred Compensation and SLIP

You may join or increase contributions to the Retirement Investors' Club (RIC), the state's deferred compensation program at any time until the date of retirement. This program does not offer any benefits related to the retirement investors club. For information regarding your options for deferred compensation after retirement, review the DAS-HRE Retirement Investors Club Web site.

Flexible Spending Accounts and SLIP

You may not change the amount of an annual contribution or enroll in the FSA program at this time. If already enrolled, you may continue to make claims and receive reimbursement for qualified expenses through the end of the calendar year in which retirement occurs.

Life Insurance and SLIP

All group life insurance ends on the last day of the calendar month in which an employee retires. This program does not offer any benefits for life insurance coverage. For information regarding your options for life insurance after retirement, review the DAS-HRE Continuing Insurance Benefits at Retirement Web site.

Long Term Disability and SLIP

Long Term Disability (LTD) coverage ends on the last day worked. This program does not offer any benefits for the long term disability program.

Things to Consider

At what age am I planning on retiring?
What do I estimate my SLIP account to be at retirement?
What is the total cost of my current health plan? Will my SLIP account balance cover the premiums for my current medical plan or will I need to switch to a lower priced medical plan?
What health plan will best meet my needs and the need of my family at retirement?
Do all or some of the plans cover my location? (If you are planning to travel outside Iowa for extended periods of time, you may want to consider enrolling in an indemnity plan or PPO plan instead of a MCO plan.)
Do your doctors participate in all or just some of the plans?
If a member of my family has special medical needs, how do the different plans cover that need or condition?

For More Information

For general questions, call your department's Personnel Assistant.

For IPERS questions, call 800-622-3849 or 515-281-0020.

For income tax questions, call the Department of Administrative Services, State Accounting Enterprise at 515-281-3976.

For health insurance questions related to the Sick Leave Insurance Program, call Rachel Orris at 515-281-6124 or e-mail Rachel Orris.