HomeMy WebLinkAboutHealth Care Savings Plan Policy
☒City Council Approved: 3/18/2003
☐City-Wide Revised:
☐Department
HEALTH CARE SAVINGS PLAN
Statement of Purpose
The Health Care Savings Plan (HCSP) is a program that allows City of Edina regular fulltime employees
to set aside their severance benefit into an account to pay medical expenses and/or health insurance
premiums after they are no longer employed by the City. Employees can choose between investment
options provided by the plan administrator. Assets in the account accumulate tax-free and, since
payouts are used for qualified medical expenses, they remain tax-free. This Policy amends the Policy for
payment of unused sick leave adopted September 7, 1999.
Program
Severance payments upon termination of employment will be used to fund the HCSP.
Employees with less than five years of service do not participate in the HCSP.
For all employees with more than five years of service participation in the HCSP is mandatory.
Employees eligible to receive a severance payment for unused sick leave at termination of
employment must contribute the entire sick leave portion of their severance to the HCSP
account up to a maximum of 960 hours.
Employees eligible to receive six weeks severance pay at termination instead of payment for sick
leave must contribute the entire six weeks severance payment to their HCSP account.
Eligibility
Effective April 1, 2003, this program applies to all regular full time non-union employees.
Plan Administration Information
The HCSP is administered by Minnesota State Retirement System (MSRS). Information regarding MSRS
and the administration of the plan is available at:
www.msrs.state.mn.us/hcsp.