Employer Contributions to the Health Reimbursement Arrangement for Active Employees. SWWC will make an annual contribution to individual accounts under the health reimbursement arrangement for qualifying bargaining unit members in the amount of: $50 per month ($600 annually) for each qualified employee who elects single coverage under the group health plan described in Subdivision 5; or $100 per month ($1,200 annually) for each qualified employee who elects family coverage under the group health plan described in subdivision 5. The contribution will be made on the first of each month over the VEBA Plan year. If a participant in the VEBA Plan is entitled to receive an annual contribution that is prorated on a monthly basis over the VEBA Plan year, and the participant incurs one or more claims for an eligible health expense that exceeds the participant’s account balance in the VEBA Plan, the employer shall, at the participant’s request, accelerate its prorated contribution for that year to the extent necessary to reimburse the participant for the claim. The total contribution for such a participant shall in no event exceed the contribution to which he or she was originally entitled to for that year. If a qualified bargaining unit member enters the VEBA Plan as a participant on a date after the first day of the VEBA Plan year, the employer shall prorate the amount of the employer contribution to reflect the late entry. All contributions on behalf of a VEBA Plan participant shall cease on the date the participant is no longer covered under the high deductible health plan in Subdivision 5 below. If participant dies without a spouse or legal dependent for federal tax purposes, and to the extent required to protect the tax status of the health reimbursement arrangement, amounts remaining in the participant’s account shall be forfeited and applied to reduce administrative expenses or future Employer contributions to the Plan.
Employer Contributions to the Health Reimbursement Arrangement for Active Employees. Subd. 1. Contributions to the Active Employees’ Plan: The school district will make an annual contribution to individual accounts under the Health Reimbursement Arrangement for qualifying bargaining unit members in accordance with the following schedule: A dollar amount of $1,200.00 for each qualified employee who elects single coverage under the group health plan described in subd. 2 of this Section. A dollar amount of $2,400.00 for each qualified employee who elects family coverage under the group health plan described in subd. 2 of this Section. The contribution will be made the first week of the new VEBA Plan year. If a qualified bargaining unit member enters the VEBA Plan as a participant on a date after the first day of the VEBA Plan year, the school district shall prorate the amount of the school district contribution. All contributions on behalf of a VEBA Plan participant shall cease on the date the participant is no longer covered under the high deductible health plan in subdivision 2 below.
Employer Contributions to the Health Reimbursement Arrangement for Active Employees
