RHSP Accounts for New Hires Sample Clauses

RHSP Accounts for New Hires. Key Elements • The University agrees that it will establish a RHSP (Retiree Health Savings Plan) under IRS code 501(c)(9) for new staff members hired into the bargaining unit after January 1, 2012 who reach age 65 and 15 years of benefits-eligible service. The RHSP account will be managed by a qualified vendor following a RFP solicitation, following consultation with the University Advisory Benefits Committee. • All such new staff will have a sub-account within the plan into which the University will contribute $1150 per year starting with the first year of eligibility and continuing thereafter up to a total of thirty (30) years of bargaining unit service following completion of one full year of bargaining unit service and provided further that the staff member remains a unit member during that period of time. No contribution will be made for any staff member who leaves the bargaining unit; however, if such staff member returns to the unit within two years, the University will continue the $1150 per year contribution until the completion of 30 years of bargaining unit service. • Staff may also add their own contributions to the subaccount in addition to the University’s contribution. • Staff will be able to choose the investment vehicle for their sub-account from an array of options available under the plan, as is the case with our current 403b plan. • All employer contributions are pre-tax; all staff contributions are post-tax. • All earnings on the sub-account assets are tax exempt. They are also exempt when withdrawn from the account provided they are used to pay for either qualified medical expenses or health insurance premiums, including any Medicare Supplement Plan. • Upon retirement of the staff member from the University, or upon termination of employment— either voluntary or involuntary—if staff have met the eligibility requirements of section 8 below, they may use the assets to purchase whatever Medicare Supplemental plan they wish. • There is a minimum service eligibility period of 15 years from date of hire into the bargaining unit for any University contributions to vest. If the staff member leaves the University prior to the completion of 15 years of bargaining unit service, either voluntarily or involuntarily, the University will retain its contributions to the staff member’s sub-account, along with any earnings on such money. In such cases, staff may keep any contributions they put into the fund, along with any earnings on such money. • The...