Short answer: WRS pays your annuity, but health coverage in retirement comes through your employer. If your district takes part in the Wisconsin Public Employers Group Health Insurance Program and you take an immediate annuity, you may keep that coverage. Sick leave conversion is for state employees, not teachers. See early retirement, working after retirement and Social Security. Estimate your annuity.
Teachers: local employees
If you were an insured local government employee (school district teachers are local employees) and take an immediate annuity, you may continue coverage as long as your former employer participates in the Wisconsin Public Employers Group Health Insurance Program; premiums are paid through your employer (if it offers post-retirement payments), then annuity deduction, then direct billing. If the employer doesn't participate, you may be eligible for the Local Annuitant Health Program (apply within 60 days after retiring, or at 65 / Medicare Part B). ET-2119 (6/18/2026), p. 15, Health Insurance
If you keep an ETF-administered health plan you must enroll in Medicare Parts A and B when first eligible (usually 65). ET-4133 (rev 6/12/2026), p. 9, Health Insurance
Sick leave conversion: state employees only
What the state program does, for State of Wisconsin employees: State employees can convert unused sick leave (Accumulated Sick Leave Conversion Credit, ASLCC) to credits that pay State Group Health Insurance premiums in retirement: unused sick leave hours x highest base hourly rate of pay with the state. Employees with 15+ years of adjusted continuous state service also get the Supplemental Health Insurance Conversion Credit (SHICC), extra matched hours. Generally your annuity must begin within 30 days of termination and you must be insured under the state plan at retirement; credits can be escrowed with comparable coverage. No cash value, no interest, can't be divided by a QDRO. ET-2119 (6/18/2026), p. 26, Sick Leave Credit Conversion Program for State Employees
Your district may have its own sick-leave payout or retiree health benefit. That's set locally, so ask your district's benefits office.
What the sources say
- Teachers are local government employees. If you were insured when you retire and take an immediate annuity, you can keep coverage as long as your former employer stays in the Wisconsin Public Employers Group Health Insurance Program. Premiums are paid by your employer (if it offers retiree payments), then from your annuity, then by direct bill.ET-2119 (6/18/2026), p. 15, Health Insurance
- If your employer doesn't participate, you may be able to join the Local Annuitant Health Program within 60 days after retiring, or when you turn 65 or enroll in Medicare Part B.ET-4133 (rev 6/12/2026), pp. 9-10, Local Employees Health Insurance
- ETF's sick leave conversion programs (ASLCC and SHICC) are for State of Wisconsin employees only: unused sick leave hours x highest base hourly pay become credits that pay state health insurance premiums. They don't apply to school district teachers.ET-2119 (6/18/2026), p. 26, Sick Leave Credit Conversion Program for State Employees; ET-4132 (7/24/2026), pp. 2-3
- State employees with at least 15 years of adjusted continuous state service also get SHICC hours matched on top of their sick leave; credits have no cash value and earn no interest.ET-8929 (rev 7/27/2026), Page 1 of 2, Who is Eligible for the SHICC Program?
- If you keep an ETF-administered health plan, you must sign up for Medicare Parts A and B when first eligible (usually 65).ET-4133 (rev 6/12/2026), p. 9, Health Insurance
Questions
Can I keep my health insurance when I retire?
If you were insured through your school district and take an immediate annuity, you can usually keep it as long as the district stays in the state's local group health program. You pay the premiums.
Can I use my sick leave to pay premiums?
Not through ETF. Its sick leave conversion program is for State of Wisconsin employees only. School district teachers are local employees. Ask your district about any local sick-leave or retiree-health benefit.
What about Medicare?
If you keep an ETF-administered health plan, you must sign up for Medicare Parts A and B when you're first eligible, usually at 65.
Source: Your Benefit Handbook (ET-2119), 6/18/2026, with Calculating Your Retirement Benefits (ET-4107, rev 3/5/2025), ET-2119 pp. 15, 26; ET-4132 pp. 2, 3; ET-4133 pp. 9, 10; ET-8929; Wis. Stat. s. 40.05. Last reviewed .