Common use of Health Care Savings Plan in Lieu of Retiree Health Insurance Clause in Contracts

Health Care Savings Plan in Lieu of Retiree Health Insurance. prorate and responsible for ER contributions only A. Employees hired after July 1, 2005, and eligible for health insurance coverage will participate in a Health Care Savings Plan (HCSP). Upon completing five years of service, employees will be automatically enrolled in the plan before the first contribution is made by the District on their behalf. B. Employees who have completed the required full years of service by June 30th of any year after 2005 and are eligible for health insurance coverage will receive the following annual contributions to the employee’s HCSP account: • $1,000 annually after five (5) completed years of employment • $2,500 annually after ten (10) completed years of employment • $5,000 annually after fifteen (15) completed years of employment C. The contributions listed above are for employees eligible for full-time health insurance contributions listed in Art 11.2 and employees working .5FTE to less than .75FTE will receive ½ the contribution amounts. D. The District is only responsible for the required contributions amounts. In the event of a District error in making the contributions, the District will correct the amounts contributed but is not responsible for any estimated gains or losses in the funds values. It is also the responsibility of the employee to track contributions amounts at least annually and notify the District promptly if the employee feels the amount contributed is incorrect, so that it can be corrected. E. The maximum total District contributions to any employee’s HCSP account will be $50,000.