Questions and Answers about the new retiree health fund deduction.

Under our SEBAC agreement with the state, as of July 1 some state employees with less than 5 years service will be subject to a 3% deduction for the retiree health fund. The most frequently asked question on this topic is how that service is calculated.

According to the Comptroller’s Office, only service during which an employee was eligible for State-paid healthcare benefits will be counted toward fulfillment of the 5-year service requirement. Any calendar months of unpaid leave, during which you didn’t receive any paycheck, will be deducted from your total years of service.

For much more detail on how service is calculated, the compensation on which the 3% contribution is based, and who is exempt from the 3% deduction
, click here to read or download the complete list of Frequently Asked Questions.