October 31, 2025 — The Productivity Enhancement Program (PEP) allows eligible employees to exchange previously accrued annual leave and/or personal leave in return for a biweekly credit to reduce their share of New York State Health Insurance Program (NYSHIP) premiums.
The 2023-2026 PEF/State Agreement improved the benefit and it now allows Institution Teachers to exchange floating days and compensatory days (if applicable).
The 2026 PEP credit will begin with the first 2026 health insurance premium deduction. The amount that will be credited toward the biweekly employee share of the premium is reflected in the following charts and based on the employee’s salary grade and the number of days forfeited. The credit for part-time employees will be prorated based on their payroll percentage.
In no case will the credit exceed the biweekly NYSHIP premium.
Salary Grade 17 and Below:
Non-Teachers
| Forfeited Days | Annual NYSHIP Credit | Biweekly Credit |
| 4 | $800 | $30.77 |
| 8 | $1,600 | $61.54 |
Institution Teachers
| Forfeited Days | Annual NYSHIP Credit | Biweekly Credit |
| 1 | $200 | $7.69 |
| 2 | $400 | $15.38 |
| 3 | $600 | $23.08 |
| 4 | $800 | $30.77 |
| 5 | $1,000 | $38.46 |
| 6 | $1,200 | $46.15 |
| 7 | $1,400 | $53.85 |
| 8 | $1,600 | $61.54 |
Salary Grade 18 through 24
Non-Teachers
| Forfeited Days | Annual NYSHIP Credit | Biweekly Credit |
| 2.5 | $750 | $28.85 |
| 5 | $1,500 | $57.69 |
Institution Teachers
| Forfeited Days | Annual NYSHIP Credit | Biweekly Credit |
| 1 | $300 | $11.54 |
| 2 | $600 | $23.08 |
| 3 | $900 | $34.62 |
| 4 | $1,200 | $46.15 |
| 5 | $1,500 | $57.69 |
Click here to download the PEP 2026 Enrollment Form. Agency attendance and leave offices must first review eligibility prior to forwarding to the agency Health Benefit Administrator (HBA). Agencies are responsible for distribution and retention of enrollment forms, coordination between the personnel office and the HBA, and certification of accrual adjustments.