Health Retirement Savings Plan/Health Reimbursement Account. (HRA) Effective January 1, 2013 the District shall establish a Health Retirement Savings Plan, or Health Reimbursement Account, or similar savings vehicle (here referred to as HRA) for unit member hired, for the purpose of funding the unit member’s post- retirement health benefits. It is understood that the future interest for this class of unit members shall be January 1, 2013. All unit members who are hired after January 1, 2013 shall be subject to the following HRA provisions: • The District shall contribute $200 monthly to the HRA of each unit member. The monies placed in each unit member’s account will earn interest which will be credited to his/her account. • In future years, the District and Service Employees International Union Local 1021 may agree to adjust the contribution amounts described above. • A Service Employees International Union Local 1021 member’s rights to the money the District deposited in the HRA shall vest in five (5) years from the permanent date of hire of the unit member. • If a unit member works less than full-time hours (.5 FTE or more), then the District contribution shall be proportional to his/her FTE in the District. • The District shall bear the full cost of administering the HRA and the separated employee shall bear the full cost of the distribution fee when a retired unit member accesses his/her share of the funds. • If there is a forfeiture of the HRA, based on the unit member leaving District service before vesting, the monies which the District deposited on behalf of the unit member shall revert to the District for use in paying future contributions to eligible HRA members; and • The Service Employees International Union Local 1021 and the District shall meet and negotiate over future changes in the Internal Revenue Service (IRS) regulations that may impact HRAs.
