HomeMy WebLinkAboutN-236 - HRA VEBACITY OF PASCO
ADMINISTRATIVE ORDERS
Administrative Order No. 236
Personnel Policies & Procedures
Subject: Health Reimbursement Arrangement, Voluntary
Employees' Beneficiary Association
Initial Effective Date:
January 27, 2014
Revised
Approved
I. PURPOSE:
This Administrative Order is issued to establish a policy and expectations regarding the
establishment of Health Reimbursement Arrangement, Voluntary Employees'
Beneficiary Association (HRA VEBA) plans.
H. DEPARTMENTS AFFECTED:
All
III. ATTACHMENTS:
A. Certification of Coverage
IV. REFERENCES:
City of Pasco Resolution No. 2847
IRS Notice 2013 -54
V. PARTICIPATING GROUPS:
Department Directors: Sick leave cashout as allowed by policy
2% of bi- weekly salary
City Manager: Sick leave cashout as allowed by policy
I% of bi- weekly salary
VI. POLICY:
A. The City of Pasco has adopted the HRA VEBA plans offered and administered by the
Voluntary Employee's Beneficiary Association Trust for Public Employees in the
Northwest.
1. The Standard HRA Plan which shall be integrated with the Employer's group
medical plan and to which the Employer shall remit contributions only on behalf
of eligible employees who are enrolled in or covered by an ACA - compliant group
medical plan.
2. The Post - Separation HRA Plan to which the Employer may remit contributions
on behalf of eligible employees, including eligible employees who are not
enrolled or covered by an eligible, ACA - complaint group medical plan and which
shall provide benefits only after a participant separates from service or retires.
a. IRS guidance (Notice 2013 -54) recommends employers certify, at least
annually, that employees, who are not covered by the City's group medical
plan, are covered by an ACA - compliant group medical plan.
3. Each group of eligible employees shall be defined and approved by the City
Council or bargaining contract.
4. All members of each separate participating group must participate in the HRA
VEBA. Contributions will be sent according to the type of plan applicable to
each eligible participant.
B. Contributions on behalf of each eligible employee shall be based on the following
selected funding sources /formulas:
1. Sick leave separation from service or retirement. Eligibility is limited to
employees who retire or separate from service with leave cash -out rights during
the term hereof.
a. Contributions, upon retirement or separation from service, shall include the
entire cash -out value of unused sick leave hours accrued and available for
cash out per policy or collective bargaining agreement.
2. Mandatory employee contributions (no individual elections permitted). The
City shall change the Group's compensation package such that eligible employees
shall receive in the form of HRA VEBA Plan contributions the amount agreed
upon by the group in question.
a. The amount may be a percentage of gross wages or a flat dollar amount.
b. Each eligible employee's wages shall be reduced by the same percentage or
flat dollar amount, depending on the election of the group.
c. Such contributions shall be considered and referred to as Employer
contributions.
Date
- -&'l -i
Administrative Order No. 236 — HRA VEBA
Page 2
I,
Attachment A
CERTIFICATION OF COVERAGE
hereby certify and have documentation that supports that I
am covered by a group medical plan other than my current employer sponsored plan and am
eligible to receive contributions into the Standard HRA plan. I understand that individual
coverage purchased on the individual market or through exchange marketplace does not allow
me to receive contributions to the Standard HRA Plan. I will notify my employer as soon as
possible if a change in my coverage occurs and I am no longer covered by an ACA - compliant
group medical plan.
Employee Signature Date
Administrative Order No. 236 — HRA VEBA