Common use of Vacation Cash Out at Retirement Option Clause in Contracts

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 VEBA 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 VEBA 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 VEBA contributions while an active employee, a union member must be covered by a qualified group health plan.