This past legislative session, a bill was
passed that allowed bargaining units to negotiate post retirement
health care accounts with the State of Minnesota. It also designated
the Minnesota State Retirement System (MSRS) as the agency that
would administer this plan. In this round of bargaining, your
MMA Negotiations Committee negotiated a post retirement health
care savings account. Supervisors with twenty (20) years of continuous
service and who are eligible for severance pay will, on separation,
have 100% of severance and 100% of vacation payout put into their
health care savings account. Severance payout into this account
is the 40% of the supervisorís first 900 hours of unused
sick leave and 12.5% of those hours exceeding 900 hours times
rate of pay on separation. Money going in and out of this account
is tax-free.
Details on how the plan will work are
contained on the Minnesota State Retirement System website www.msrs.state.mn.us.
This site will give you plan features, contains a "questions
and answers"page, and you may download forms. Also contained
in this site is the link to the IRS website that details eligible
expenses.
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