Human Resources

Sick Leave Insurance Program (SLIP) - Frequently Asked Questions

General Information
Health Insurance
Life Insurance
Social Security
Long Term Disability Insurance

General Information

Q: What is the Sick Leave Insurance Program (SLIP)?
A: This is a program that offers retirement eligible employees an option for using all or part of their unused sick leave balance to pay the employer share of their state group health insurance premiums until they become eligible for Medicare. Similar programs are offered to Judicial Branch and Legislative Branch state employees.

Q: Who is eligible?
A: AFSCME covered employees, IUP covered employees, and non-contract employees who are eligible for a bona fide retirement are eligible once they retire from State government and begin receiving monthly state pension benefits.

Q: What is the schedule for signing up?
A: Employees may sign up any time on or before their last day of work. After an employee has retired, he or she is no longer eligible.

Q: How do I know if I qualify?
A: You qualify for the Sick Leave Insurance Program if the value of your sick leave balance is greater than $2,000 PLUS the cost of at least one month of the employer share of your state group health insurance premium.

Q: When does my eligibility expire?
A: There are six reasons which will cause your eligibility for the Sick Leave Insurance Program to expire. They are:

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

Q: Can I come back to work with the state at a later time?
A: You may return to work with the state. However, if you accept a permanent state position, you will no longer be eligible for this program and all further benefits will be forfeited. Your sick leave balance as a new employee will begin at 0 hours. If approved, you can work as a temporary employee (not eligible for benefits) without affecting your SLIP eligibility. However, be certain to check with IPERS regarding their rules about returning to IPERS covered employment. If you become ineligible for IPERS, you will also be ineligible for SLIP.

Q: If I'm ready to retire but don't have much sick leave, do I have to agree to be covered under this program?
A: No. Retiring under this program is entirely your choice. In fact, if the value of your accrued sick leave will be less than $2000 you will not be eligible for this program.

Q: Once I sign up to leave under the Sick Leave Insurance Program, can I change my mind?
A: Yes, you may change your mind and rescind your application to participate up to your last day of work.

Q: I am already 65 and eligible for Medicare. Since I am not eligible for this program, do I still accrue sick leave at the reduced level?
A: Sick leave accrual amounts are based only on the amount of accrued sick leave you have in your sick leave bank, not on age or eligibility for Medicare. (See accrual chart below.) If you have a need to use sick leave and that usage causes your sick leave balance to go below 1500 hours, you will again accrue sick leave at the rate of 12 days per year (9 days per year for IUP Social Services Unit employees) until your sick leave balance goes back up over 1500 hours. If you have a need to use sick leave and that usage causes your sick leave balance to go below 750 hours, you will again accrue sick leave at the rate of 18 days per year (12 days per year for IUP Social Services Unit employees) until your sick leave balance goes back up over 750 hours.

If the sick leave balance is:	Monthly Sick Leave to Vacation Conversion Rate for AFSCME, IUP Science Unit, and Non-contract	Monthly Sick Leave to Vacation Conversion Rate for IUP Social Services Unit
Zero to 750 hours	12 hours of sick leave for 4 hours of vacation per month	8 hours of sick leave for 4 hours of vacation per month 12 days per year
Over 750 hours to 1,500 hours	8 hours of sick leave for 4 hours of vacation per month	6 hours of sick leave for 4 hours of vacation per month
Over 1,500 hours	4 hours of sick leave for 4 hours of vacation per month	4 hours of sick leave for 4 hours of vacation per month

Q: How will converting sick leave to vacation work with the new accrual rates? Will I get fewer hours of vacation?
A: The conversion of sick leave to vacation will still be available after July 1, 2006. The amount of vacation a full time employee can add to their vacation bank through the conversion is still the same number of hours per month (pro-rated for part time employees.) What will be different after July 1 is the amount of sick leave converted. See the chart below for the new conversion rates for full time employees. Rates for part time employees are prorated.

Health Insurance

Q: What are my health and dental insurance continuation options as a participant in the Sick Leave Insurance Program?
A: The purpose of this program is to allow you to continue to participate in the state group health insurance program through the State of Iowa's Direct Pay Continuation Group and to have the state continue to pay the employer share using your converted unused sick leave balance. You may select a single plan or a family plan. Dental insurance is not part of this program but you may continue this insurance at your own expense if you choose. The State Direct Pay Continuation Group coverage is valid for as long as you qualify for this program, as described above. COBRA coverage is valid for only 18 months.

Q: When do I have to decide about insurance continuation or change?
A: At the time of your retirement you must decide if you wish to participate in this program and continue your health insurance coverage in the state group. This decision should be made as early as possible upon your decision to retire. You may continue with the health plan you had as an active employee OR choose any other health plan with a lower total premium than your current plan.

Q: When will my coverage and state contribution toward my plan end as an active employee?
A: Your coverage and state share payment will end at the end of the month in which you leave employment. (For example, 7-31-2006 if you leave employment effective 7-2-2006.)

Q: If I elect not to continue coverage through the State's group insurance program as a retiree, can I re-enroll in the state's group after a break in coverage?
A: If you do not continue with the state's group at the time you retire, you may not rejoin the group at a later date.

Q: What do I have to do to continue my health coverage as a retiree under the Sick Leave Insurance Program?
A: You must see your Personnel Assistant prior to your retirement to complete the proper program and health insurance plan enrollment forms. Your coverage will be effective the first of the month following your retirement date.

Q: How will the Employer share for the state's group insurance premium be calculated?
A: The employer share will be calculated based on your choice of single or family health coverage and the plan in which you enroll. Your employer share will be the same amount as that paid on behalf of a current employee in the same plan. Click here to see the SLIP retiree rates.

Q: How will I pay for my coverage?
A: At this time, there is no employee share for single coverage. If you have a family plan for which there is an employee share, you must submit the employee share for the first month with your enrollment paperwork. The insurance carrier will bill you directly each month thereafter or you may sign up for automatic withdrawal from your checking or savings account.

Q: When does Medicare coverage begin for me and how does it affect my health insurance coverage and my participation in the Sick Leave Insurance Program?
A: A person generally becomes eligible for Medicare upon turning age 65. However, in cases of disability, a person may become eligible for Medicare earlier. You may continue your coverage with the Direct Pay Continuation group when you become Medicare eligible. However, your eligibility for the Sick Leave Insurance Program ends when you become eligible for Medicare. If you choose to continue in the state's Direct Pay Continuation group, you must notify the insurance carrier of your enrollment in both Parts A and B of Medicare and Medicare will become the primary payer of your claims. A premium change will be made because the state will no longer be paying the employer share from your sick leave balance. The benefits of our plan do not change. You may drop your group coverage when you become eligible for Medicare and purchase a private Medicare Supplement Policy. A Medicare Supplement Policy does not have the same benefits as our group plan. If you leave the State's group there is no provision for you to rejoin the group at a later date.

Q: If my spouse and I are both state employees and currently participate in a double spouse family contract can I continue coverage through my spouse?
A: Double spouse eligibility requires that both spouses be current state employees. Because of that, in order to participate in the Sick Leave Insurance Program, you will have to either convert to two single plans, one for you under this program and one for your spouse as a current employee, or have one single plan and one family plan if you have dependents who need coverage. Since this benefit is to pay the employer share, you cannot combine this benefit with a current state employee plan in which the employer share is already paid.

Q: How will the premiums be handled if both my spouse and I retire under this program and we currently have a family plan with no dependents?
A: Since there is no provision for double spouse premiums in this program, you and your spouse will each elect a single plan. Your sick leave account will pay the employer share for your single plan premium and your spouse's sick leave account will pay for your spouse's employer share single plan premium.

Q: How will the premiums be handled if both my spouse and I retire under this program and we currently have a family plan and will need to continue with that family plan?
A: Since there is no provision for double spouse premiums in this program, you and your spouse will each have a separate plan. One will have to elect family coverage and the other single coverage. Your sick leave account will pay the employer share for one plan premium and your spouse's sick leave account will pay for the employer share of the other premium.

Q: What if my spouse is currently Medicare eligible and I am not? Will I have to have a family plan?
A: You can have a single plan for yourself or if you wish to keep your spouse covered by our group, you can carry a family plan. Medicare would be the primary payer on claims for the Medicare eligible person. Your monthly premium amount would be lower to reflect our secondary claims status.

Q: Can I add my spouse or family at a later date if I elect single coverage at the time of program participation?
A: You may add eligible family members to your health plan at the time of a qualified life event. As long as proof of other coverage for the persons being added is submitted, any preexisting condition waiting period can be eliminated on a month for month basis.

Q: May I apply the value of my SLIP account to the premiums for a health insurance plan that is not with the state like my spouse's plan with a non-state employer?
A: No, a person cannot take the dollars and apply them to a health insurance plan that is not with the state. This program is only for the payment of the employer share of the health insurance premium of the state’s group health insurance program. It has no cash value and it is not transferable to another use or to an heir.

Q: May I change the health plan in which I am enrolled?
A: As a participant in the Sick Leave Insurance Program you may choose to continue in the same health plan in which you are enrolled at the time of your retirement or you may select a plan with a lower total premium than your current plan. In addition, you will be notified by mail of the enrollment and change period where you can change your health plan each year if you wish.
If you are in one of the MCOs and you change your residence so that you are no longer in the MCO Service Area, you may change to a plan that will cover you for services at your new location. If you are out of your MCO Service Area you will only have coverage for emergencies and life threatening illnesses.

Life Insurance

Q: Do I have life insurance coverage through the state program if I participate in the Sick Leave Insurance Program?
A: No, your group life insurance coverage ends on the last day of the calendar month in which you retire. However, you can convert your group insurance to an individual whole life policy. If you choose to do this, you become the contract holder and are responsible for payment of premiums. You can refer to the DAS-HRE Life Insurance web page for more information.

Social Security

Q: Is the value of the state share of my insurance premium subject to FICA withholding?
A: No, payment of the state share for insurance under this program is not subject to FICA withholding.

Q: I am qualified to draw Social Security benefits. Will the value of the payments I receive under the Sick Leave Insurance Program count against my earnings limit (the amount of money I can earn in a year before my social security benefits are reduced)?
A: No.

Long Term Disability Insurance

Q: Do I have LTD coverage?
A: Your Long Term Disability coverage ends on your last day worked.

Q: Can I convert my LTD coverage?
A: LTD coverage cannot be converted into an individual policy. You can purchase LTD insurance through your personal insurance agent.

Updated: 06/18/2008