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Human Resources

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.)

For general information on continuing insurance benefits at retirement, review the DAS Continuing Insurance Benefits at Retirement website.

Quick Access to this Site Premiums
Eligibility 2014 SLIP Health Insurance Premiums
Program Overview 2014 SLIP - Exec Branch Non-Contract
Sick Leave Conversion Chart Forms
SLIP Calculation SLIP Calculation Estimate Form  (estimate only)
SLIP Calculation Example SLIP Enrollment Form 
Health Plans Available Group Insurance Direct Pay Continuation Form
SLIP Premiums updated icon SLIP Enrollment Checklist for HRA/PA
SLIP Account Process
Income Tax Considerations

updated icon Exec Branch Non Contract SLIP Retiree Wellness Participation
Double Spouse Coverage and SLIP  
Applying for SLIP  
SLIP Coverage Ends  
Reemployment with the State of Iowa  
Deferred Compensation and SLIP
Flexible Spending Accounts and SLIP
Life Insurance and SLIP  
Long Term Disability Insurance and SLIP
For More Information  
Resources
Frequently Asked Questions (FAQs)

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 have attained at least age 55 by your retirement date.
  • 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.
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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.

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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

 

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SLIP Calculation

Following are the steps to calculate your SLIP account.

  1. Identify the total number of hours of accrued sick leave on the last day of work.
  2. 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.
  3. 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. )
  4. 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.
  5. Multiply the remaining amount times the conversion rate.
  6. The result is the SLIP account balance in dollars (not hours.)

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

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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 $30.00 at retirement.

Multiply the total number of sick leave hours by the regular rate of pay
(1,000 * $30.00).
$30,000.00
Subtract $2,000 from the total.
-$2,000.00
Subtotal
$28,000.00
Multiply the remaining amount times the conversion rate (80% x $28,000)
(Conversion rate for sick leave balance between 750 – 1,500 hours is 80%)

$22,400.00
Credited to the retiree's SLIP account
$22,400.00

 

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Health Plans Available to SLIP Retirees

You have the same health and dental plans available as a retiree as active employees. Retirees have the following Wellmark Blue Cross Blue Shield health plans available.

  • Blue Access
  • Blue Advantage
  • Gold Preferred
  • Iowa Select
  • Program 3 Plus
  • Deductible 3 Plus

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 to the DAS Health Insurance website.

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SLIP Premiums

2014 SLIP Health Insurance Premiums

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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 retiree share. Wellmark 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.

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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.

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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.

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Applying for the SLIP

Complete the Sick Leave Insurance Enrollment Form and any other forms applicable. Submit the completed agreement and other forms to your department's personnel assistant prior to your retirement date.

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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 State of Iowa 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.

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Reemployment with the State of Iowa Executive Branch

A SLIP retiree cannot return to permanent State employment and continue to receive SLIP benefits.  A SLIP retiree, who wishes to become reemployed with the State in a permanent position, waives all current and future SLIP benefits.  You are eligible to return to state government once your SLIP benefits cease.

A SLIP retiree may be hired in a temporary position for a fixed term appointment if the hiring authority has received approval from the Department of Administrative Services.  Approval will be for short-term situations only.  Long-term continued employment in a temporary status will not be permitted.  A SLIP – Retiree Rehire Authorization form (CFN 552-0719) must be completed and submitted to your DAS Personnel Officer.

A SLIP retiree is not prohibited from performing services for the State if the SLIP retiree:

  1. Is an independent contractor;
  2. Is employed by an entity that contracts with the State; or
  3. Is employed by a temporary placement agency.

If you are a SLIP retiree from the Judicial Branch, contact your district court administrator if you any questions about reemployment.

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.

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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 Retirement Investors Club website.

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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. If you prepay for health flex coverage for the remainder of the calendar year with your final paycheck, you may incur new claims for the remainder of the year. If you choose not to prepay for coverage, you may incur new health flex claims through the end of the month in which you make your final payroll contribution.

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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 Continuing Insurance Benefits at Retirement website.

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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.

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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, contact Cindy Broshous at 515-281-6124.

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Updated 2014-06-23


This website describes the benefits in effect on January 1, 2014. This site does not meet the requirements of a summary plan description and is not intended to serve as one.  If there are discrepancies between this information and any of the plan documents or State of Iowa policies, the plan documents or State of Iowa policies will govern in all cases.  The benefits described on this website are subject to change.  Nothing herein shall be construed as a guarantee of future benefits.