1 / 18

VEBA Service Group a Division of Gallagher Benefit Services, Inc.

VEBA Service Group a Division of Gallagher Benefit Services, Inc. WASBO PPR Presentation. Presented by: Brian Riehs ▪ February 4, 2014. Introduction. Plan participation confirmation Contribution instructions Plan documents Plan design change Premium Tax Credit

haines
Download Presentation

VEBA Service Group a Division of Gallagher Benefit Services, Inc.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. VEBA Service Group a Division of Gallagher Benefit Services, Inc.

  2. WASBO PPR Presentation Presented by: Brian Riehs▪ February 4, 2014

  3. Introduction • Plan participation confirmation • Contribution instructions • Plan documents • Plan design change • Premium Tax Credit • Administrative reminders • General plan reminders • Common funding methods • See you at WASBO!

  4. 12/20 was a busy email day! • Plan participation confirmation • Contribution instructions • Plan documents • Premium Tax Credit

  5. Plan Participation Confirmation • New Employer Adoption Agreement • Plan Participation Confirmation form • Contributions will not be processed without first receiving either one of the above

  6. Contribution Instructions • “001” for Standard HRA • “002” for Post-separation HRA • New Contribution Template • Old template no longer accepted

  7. Plan Documents • Standard HRA Plan (Full Benefits) • Standard HRA Plan (Pre-Medicare Limited-Scope) • Post-separation HRA Plan (Full Benefits) • Post-separation HRA Plan (Pre-Medicare Limited-Scope)

  8. Plan Design Change • Standard HRA Plan • For employees who are eligible to enroll in your qualified group health plan and • Are enrolled in or covered by your plan; or • Attest that they are enrolled in or covered by another qualified group health plan • Reimburses all qualified health care expenses (in-service and post-separation)

  9. Plan Design Change • Post-separation HRA Plan • For all eligible employees, including those who do not qualify for Standard HRA Plan contributions • Reimburses all qualified health care expenses (post-separation only) • Claims eligibility suspended for re-hires during such re-employment period

  10. Plan Design Change • Pre-Medicare Limited-Scope (law requires separate plan document) • Available option for Standard and Post-separation HRA participants who purchase coverage through an exchange and want to become eligible for the Premium Tax Credit • Irrevocable election until Medicare eligibility • Reimburses certain dental, vision, and long-term care expenses and premiums only

  11. Premium Tax Credit • If a participant (or a family member) purchases coverage through a marketplace exchange and wants to qualify for the Premium Tax Credit first need to use up, limit, or waive their HRA (VEBA) benefits • Premiums for exchange coverage may be reimbursed; premiums subsidized by the Premium Tax Credit cannot be reimbursed • More information • www.irs.gov/uac/The-Premium-Tax-Credit • Facts About Premium Tax Credit handout available online • Participants received information in January 2014 Participant News

  12. Administrative Reminders • No Form W-2 reporting • Use new contribution template • Use updated Memorandum of Understanding and Employer Policy language samples • Submit Plan Design Change Form to report new participating groups, funding method changes/additions, etc. • Fully complete EMPLOYER shaded box when submitting Enrollment Forms

  13. Administrative Reminders • Don’t submit negative contributions; request a Mistake of Fact Notification form to correct contribution overpayments • Don’t discriminate; change percent-of-pay contributions to a uniform, flat-dollar amount • Operate under the 1990 “all or none” IRS private letter ruling; it is more conservative than the 1993 “excess sick leave forfeiture” ruling • Avoid small groups for VEBA purposes; voting groups should have a least five members

  14. General Plan Reminders • New investment options effective October 2013 • PCORI fee (currently $2/year per participant) is required by federal health care reform; it is not an administrative fee • Legally-married, same-sex spouses now covered • Young adult children covered through end of calendar year in which they turn age 26

  15. General Plan Reminders • HSA contribution eligibility requires limited-purpose HRA (VEBA) coverage • If still working and on Medicare, VEBA pays first (unless limited-purpose VEBA coverage is elected) • Participants who purchase medical coverage through a marketplace exchange and want to qualify for the Premium Tax Credit may need to first use up, limit, or waive their VEBA benefits

  16. Common Funding Methods • Mandatory employee contributions • Sick leave cash out (retirement and annual) • Vacation, personal, other leave cash outs • Part or all of future pay raise or COLA • Contribution after electing lower-cost medical plan

  17. See you at WASBO! • April 23-25 • Attend our presentations, including VEBA Basics on April 24 @ 1:20 p.m. • Stop by our booth!

  18. Questions?

More Related