What is Disability Retirement?

Date Posted: 06/15/2026

A cheerful young man with vision impairment enjoys music in a sunny outdoor setting with his cane.

What is Disability Retirement? 

Disability retirement is a benefit you may qualify for if a serious injury or illness prevents you from working.

No one likes to think about this kind of life change, but it’s important to understand your options under NYSHIP and the steps you need to take.

Before you can receive disability retirement benefits, you must receive an award letter from one of the following:

  1. Your New York State retirement system – If approved, this may allow you to continue your health benefits. Examples of retirement systems include, New York State and Local Retirement System (NYSLRS), the New York State Teachers’ Retirement System or any of New York State’s political subdivisions.
  2. The Social Security Administration (SSA) – The SSA may approve Social Security Disability Insurance (SSDI), which provides a monthly payment to replace lost wages. For information contact the Social Security Administration at 1-800-772-1213 or visit ssa.gov.

Type of Disability Retirement 

There are two types of disability retirement:

  1. Non-work related or ordinary disability retirement
    When an injury or illness happens outside of work. For example, a car accident may leave someone unable to work. To qualify, you must meet all three eligibility requirements and receive approval from your retirement system or SSA.
  2. Work-related disability retirement
    When you become injured or ill while performing your job. For work-related disability retirement, the minimum service requirement may be waived, but you must still meet the other eligibility requirements. 

Eligibility Requirements

Under NYSHIP, you may be able to keep your benefits as a retiree if you meet certain requirements. 

  1. You must meet a minimum amount of NYSHIP benefits-eligible service time. This requirement depends on:
    1. The date you last entered service

    2. The type of agency where you worked, which may include a combination of service with New York State, Participating Employers and/or Participating Agencies

      Contact your Health Benefits Administrator (HBA) to confirm whether your service meets this requirement.

  2. You must qualify as a member of a New York State retirement system by meeting their service and age requirements. 
  3. When you leave active employee, you must be enrolled in NYSHIP through The Empire Plan or a NYSHIP HMO. If you participate in the Opt-Out Program, you do not meet retirement eligibility. Instead, you must enroll in a NYSHIP plan or defer coverage. 

For complete details and more information, see Disability and Your NYSHIP Coverage, contact your HBA, Agency Contact or the Employee Benefits Division.