Productivity Enhancement Program (PEP)
By Benefits Office | Nov 3, 2025
Management/Confidential and UUP- Represented Employees
The Productivity Enhancement Program (PEP) for 2026 allows eligible SUNY Management Confidential (MIC) and UUP represented employees to exchange up to eight previously accrued annual leave in return for a biweekly credit that reduces the employee's share of the New York State health Insurance Program (NYSHIP) premium.
The enrollment period for the 2026 calendar year (CY) began on November 1, 2025 and will end at the close of business Monday, December 08, 2025. Employees who participated in the program in previous years and are interested in participating in CY 2026, must re-enroll.
The credit of $800 or $1,600 is based on the employee's salary, and whether the employee has an individual or family contract. The credited funds will be divided over twenty-six pay periods. For $800, the credit will be $30.76 biweekly and for $1600, the credit will be $61.53 biweekly.
The credit of $750 or $1,500 is also based on the employee's salary, and whether the employee has an individual or family contract. The credited funds will be divided over twenty-six pay periods. For $750, the credit will be $28.85 biweekly and for $1500, the credit will be $57.69 biweekly.
Eligible full-time employees with a salary of $80,658 or less, and eligible part-time employees whose salary is within the same range may exchange four ( 4) or eight (8) annual leave days for an annual credit of up to $800 or $1600, respectively. Additionally, eligible full-time and eligible part-time employees whose earnings are more than $80,658 and below $115,202 may exchange two and half (2.5) or five (5) annual leave days for a credit ofup to $750 or $1500 respectively.
Employees participating must meet all of the following criteria:
- Must be covered by the 2022-2026 New York State/UUP Collective Bargaining Agreement or be a SUNY MIC employee;
- Must be a full-time employee with an annual salary below $115,202 OR be part-time whose biweekly salary is within the salary range at the time of enrollment;
- Must be eligible to receive an employer contribution toward NYSHIP premiums (or be on leave without pay from a position in which the employee is normally eligible for an employer share contribution toward NYSHIP premiums, (FMLA, PFL, or PPL); and
- Must have a leave balance of at least eight (8) vacation days if full-time, or four (4) days if part-time remaining after the election of PEP.
Once an employee enrolls for 2026, he/she will continue to participate in the program for the duration of the plan year unless he/she separates from State services or cease to be a NYSHIP contract holder. Note: that an employee who moves between individual and family coverage under the NYSHIP rules will have his/her health insurance contributions adjusted upward or downward as appropriate.
As the decision to participate in PEP is a personal one, an employee should consider several factors before making the decision. Such factors include his/her daily rate of pay versus the annual cost of the NYSHIP premium, his/her leave balances, his/her normal annual accrual rate, his/her anticipated need to use annual leave, and his/her ability to forfeit two and a half or more days of annual vacation time during the calendar year.
Employees should also keep in mind that at the time of retirement, he/she is eligible to receive payment for up to thirty (30) days of accrued annual leave. Note that any disputes arising from this program are not subject to the grievance procedures contained in the 2022-2026 State/UUP collective bargaining agreement.
Leave forfeited in association with the program will not be returned, in whole or in part, to employees who cease to be eligible for participation in the program.
If you wish to enroll in PEP for 2026, please complete the attached form and return it to the Benefits Office at Box #1191 by the close of business Monday, December 08, 2025.
The Benefits Office is located at 271 Lenox Rd, or the forms can be emailed to benefits@downstate.edu
All CSEA, NYSCOPBA, PBANY and PEF Represented-Employees
The Productivity Enhancement Program (PEP) for 2026 (CY 2026) allows eligible employees represented by CSEA, PEF, NYSCOPBA and PBANYS, (Salary Grades (SG) 1-24) to exchange previously accrued annual leave (vacation) and/or personal leave in return for a credit to be applied toward their employee's share of the New York State Health Insurance Program (NYSHIP) premium on a bi-weekly basis.
The enrollment period for the CY 2026 began November 1, 2025 and will end at the close of business Monday, December 08, 2025. Employees who participated in the program in previous years and are interested in participating for CY 2026, must re-enroll.
The credit can range from $750 or $1600, depending on salary grade level. Also, the deduction is based on whether the employee has an individual or family contract. The credited funds will be divided over twenty-six pay periods.
Eligible employees in SG 1-17 who have an annual salary rate that is no greater than the SG-17 job rate, may elect to exchange a total of either 4 days (30 hours for 37.5 work week or 32 hours for 40 hours workweek) or 8 days (60 hours for 37.5 work week or 64 hours for 40 hours workweek) of annual leave or personal leave. Credit for SG 1-17 is $800 or $1600.
Eligible employees in SG 18-24 who have an annual salary rate that does not exceed the SG-24 job rate, may elect to exchange a total of either 2.5 days (18.75 hours for 37.5 work week or 20 hours for 40 hours work week) or 5 days (37.5 hours for 37.5 or 40 hours for 40 hours work week) of annual leave or personal leave. Credit for SG 18-24 is $750 or $1500.
Employees participating must meet all of the following criteria:
- Must be covered by the 2022-2026 New York State/UUP Collective Bargaining Agreement or be a SUNY MIC employee;
- Must be a full-time employee with an annual salary below $115,202 OR be part-time whose biweekly salary is within the salary range at the time of enrollment;
- Must be in an active status and be paid on a Calendar Year or College Year basis;
- Must be a NYSHIP enrollee ( contract holder) in the Empire Plan or an HMO;
- Must be eligible to receive an employer contribution toward NYSHIP premiums (or be on leave without pay from a position in which the employee is normally eligible for an employer share contribution toward NYSHIP premiums, (FMLA, PFL, or PPL); and
- Must have a leave balance of at least eight (8) vacation days if full-time, or four (4) days if part-time remaining after the election of PEP.
Once an employee enrolls for 2026, he/she will continue to participate in the program for the duration of the plan year unless he/she separates from State services or cease to be a NYSHIP contract holder. Note: that an employee who moves between individual and family coverage under the NYSHIP rules will have his/her health insurance contributions adjusted upward or downward as appropriate.
As the decision to participate in PEP is a personal one, an employee should consider several factors before making the decision. Such factors include his/her daily rate of pay versus the annual cost of the NYSHIP premium, his/her leave balances, his/her normal annual accrual rate, his/her anticipated need to use annual leave, and his/her ability to forfeit two and a half or more days of annual vacation time during the calendar year.
Employees should also keep in mind that at the time of retirement, he/she is eligible to receive payment for up to thirty (30) days of accrued annual leave. Note that any disputes arising from this program are not subject to the grievance procedures contained in the 2022-2026 State/UUP collective bargaining agreement.
Leave forfeited in association with the program will not be returned, in whole or in part, to employees who cease to be eligible for participation in the program.
If you wish to enroll in PEP for 2026, please complete the attached form and return it to the Benefits Office at Box #1191 by the close of business Monday, December 08, 2025.
The Benefits Office is located at 271 Lenox Rd, or the forms can be emailed to benefits@downstate.edu
Tags: Employee Resources