Vacation Cash Out at Retirement Option. If a retiring employee is in a bargaining unit that has opted to participate in HRA XXXX and has elected this option, the County will transfer funds equal to fifty (50) percent of that participating employee’s cash out of eligible vacation leave tax-free to an HRA XXXX trust account on that employee’s behalf at his/her retirement. These funds will be transferred to the HRA VEBA account in lieu of the regular cash out to the employee, not in addition to the regular cash out. The funds in the HRA VEBA Plan will be available to the member to pay for eligible health care-related expenses after retirement. De minimis amounts under $200 will not be subject to the HRA VEBA provisions and will be paid out directly to the employee and subject to appropriate supplemental taxes. The following conditions (as well as any additional conditions required by law) apply to this Option: ● All benefit-eligible union members must complete HRA VEBA enrollment forms to establish HRA VEBA accounts. ● To access HRA XXXX contributions while an active employee, a union member must be covered by a qualified group health plan.
Vacation Cash Out at Retirement Option. If a retiring employee is in a bargaining unit that has opted to participate in HRA XXXX and has elected this option, the County will transfer funds equal to fifty (50) percent of that participating employee’s cash out of eligible vacation leave tax-free to an HRA XXXX trust account on that employee’s behalf at his/her retirement. These funds will be transferred to the HRA VEBA account in lieu of the regular cash out to the employee, not in addition to the regular cash out. The funds in the HRA VEBA Plan will be available to the member to pay for eligible health care-related expenses after retirement. De minimis amounts under $200 will not be subject to the HRA VEBA provisions and will be paid out directly to the employee and subject to appropriate supplemental taxes. The following conditions (as well as any additional conditions required by law) apply to this Option: ● All benefit-eligible union members must complete HRA VEBA enrollment forms to establish HRA VEBA accounts. ● To access HRA XXXX contributions while an active employee, a union member must be covered by a qualified group health plan. ● If a union member opts out of King County’s medical plan and is not covered under another qualified group health plan, he/she must continue to contribute $50 a month but will be unable to access the funds until separation of employment. ● If a union member subsequently opts back into a King County medical plan (and was not covered under a qualified group health plan) then: ○ HRA XXXX funds contributed during the opt-out period may only be accessed upon separation. ○ HRA XXXX funds contributed after the opt-in period may be accessed immediately for qualified expenses. The parties understand that the VEBA options and elections process must comply with applicable law, and options available or conditions placed on specific options may change from time to time as necessary to comply with legal and systems requirements. Should the County need to change options or process due to legal requirements or systems changes, it will so notify unions and discuss such changes in the Joint Labor Management Insurance Committee (JLMIC). A Qualified Group Health Plan is defined as a health plan that meets the minimum value requirements of the Affordable Care Act (ACA) law. For example, these may include plans sponsored by an employer or group of employers, coverage through a former employer and TRICARE but do not usually include Medicare, Medicaid, Veterans Administration (VA) cov...
