Agenda - Council - 03/11/2025 - Laserfiche WebLink

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Death of Participant Contributions to the Plan Contributions to the Plan shall end upon the Participant's death, unless the contribution is a payroll deduction from wages earned prior to the Participant's death. Rights of Succession If the Participant dies prior to exhausting their HCSP account balance, the surviving spouse shall be eligible (pursuant to the rules established by the Administrator) to be reimbursed, tax-free, for eligible healthcare expenses until the account balance is exhausted. The surviving spouse may not disclaim their right to any remaining account balance. If the Participant has no surviving spouse, the remaining account balance will be divided equally among all legal dependents. Each dependent's share shall be treated as a separate HCSP account to be used for the tax-free reimbursement of eligible healthcare expenses. If the Participant has no spouse or legal dependent(s), then the designated beneficiaries shall be eligible to be reimbursed for healthcare expenses until the account is exhausted. If the Participant has more than one designated beneficiary, the account balance will divided as instructed by the participant. In the absence of a specific percentage, the account will be divided equally among the beneficiaries. Each beneficiary's share shall be treated as a separate HCSP account. Reimbursements to a Beneficiary are subject to state and federal taxes. If the Participant has no spouse, legal dependent(s) or designated beneficiaries, then the representative of the estate will determine who is eligible to receive the money, which must be used for the reimbursement of eligible healthcare expenses. Election to Suspend Reimbursements A Participant may elect to suspend reimbursement eligibility for a plan year in which there is "conflicting coverage" because the Participant, spouse, or employer contributed to a Health Savings Account (HSA) on behalf of the Participant. For administrative purposes, the plan year will be identified as a calendar year running from January 1 to December 31. To suspend the HCSP account, a Participant must submit a Reimbursement Suspension Election form prior to the beginning of that plan year. The suspension election is effective for that plan year and may not be modified or revoked during that period. The suspension election applies to reimbursement of medical expenses; however reimbursement of dental or vision expenses is allowable if a Participant meets the eligibility criteria described in the "Reimbursements" section (see page 10). ■ The suspension election must be renewed each plan year. ■ If a Participant suspends his/her HCSP account, the Employer shall continue to deposit funds to the account as outlined in the applicable bargaining agreement or personnel policy. ■ Participants may not request reimbursement of expenses incurred during the plan year for which the suspension election applies regardless of whether the reimbursement request is submitted during the plan year or subsequent years. HCSP Plan Document December 1, 2023 13