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NYSHIP premiums FAQ

When does the new salary level take effect for the 2023 NYSHIP premiums?

Part of New York State’s Collective Bargaining Agreement was the introduction of salary-sensitive premium levels. On January 6, 2013, the State’s Department of Civil Service (DCS) decided upon two premium levels, charging more in premium dollars for those in the higher salary range. 

How do the salary grades translate into Cornell salary levels?

Cornell University does not use the State salary grades in its compensation system. Therefore, Cornell annually reports the salary grade equivalents of all Contract College benefits-eligible employees as of October 1st to the NY State DCS. This information is used to annually assign health insurance premium tiers to employees for the following plan year as displayed below:

  • Annualized earnings equal to or less than $49,670.00 pay the lower premium tier
  • Annualized earnings that exceed $49,670.00 pay the higher premium tier

What hourly rate is used?

The University’s HR/Payroll database has an hourly rate calculated for each person on payroll. Cornell uses the employee’s hourly rate for the premium tier calculation on October 1st of each year.

How must Cornell annualize wages or salary?

Full-time salaried faculty and staff have their compensation already communicated as an annual amount. Thus, the $49,670.00 breakpoint should be clear.

Full-time staff who are paid hourly must have their hourly rate multiplied by (2,088), the number of work hours in a full-time schedule for the year.

Part-time faculty and staff have their hourly rate, as represented in the HR/Payroll database, annualized at the same rate as full-time employees (2,088 hours per year). Then, they can compare this annualized salary at full-time to the $49,670.00 threshold to determine their premium level. 

How do multiple jobs impact this annualized salary?

Individuals with multiple jobs will have the annualized salary of each position calculated independently, ensuring they are treated as two stand-alone positions.

Will part-time faculty and staff pay at the same premium tier as full-time faculty and staff?

Yes, Cornell must report the full annualized salary of each individual based on the average number of full-time hours worked in a year to determine the premium tier for the year. This formula is used regardless of the person working seasonally or if the work schedule varies throughout the year.

The formula is (hourly rate) X (2088 work hours in a year) = annual compensation.

How will employees on leave without pay (LWOP), a layoff, or COBRA have their premium tier calculation figured?

  • Employees on a LWOP or Seasonal Layoff (job is on hold) will pay the full cost of the total premium. Salary-based tier pricing does not apply. DCS will bill you monthly.
  • Employees on a layoff (no job hold) will pay the premium tier calculation-based hourly rate immediately before the layoff in the system on October 1st. DCS will bill you monthly.
  • Employees on short-term layoff: DCS considers this status as a Leave without pay (LWOP) and expects these people to be treated the same way as (a) above.
  • Employees who go onto COBRA: DCS will bill for the full cost of the coverage plus 2% to account for additional administrative expenses.

Note: The New York State Department of Civil Service will send a monthly invoice to the employee to collect of their premium.

While every attempt has been made to ensure the accuracy of this Summary, in the event of any discrepancy, the Collective Bargaining Agreement with New York State will prevail.