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The Health Care <br />Savings Plan <br />is an employer -sponsored program that allows Minnesota Public <br />employees to invest money in a medical savings account while <br />employed. This plan Is administered by the Minnesota State <br />Retirement System (MSRS), <br />How It Works <br />You are automatically enrolled and contribute to the Health Care Savings Plan (HCSP) as directed by the bargaining agreement or <br />personnel policy of your employer. You choose how your account balance is invested. After you end employment, you may access the <br />funds to reimburse eligible medical expenses incurred by you, your spouse, legal tax dependents and adult children up to their 26th <br />birthday. An administrative fee is charged to help pay for the cost of plan services. This fee is prorated and deducted monthly from <br />your account balance. <br />HCSP is a TAX-FREE Account! <br />More of your money works for you in an HCSP account because you don't pay taxes on contributions or reimbursements. Here is an <br />example showing how you benefit from TAX-FREE savings assuming a severance payment of $10,000. <br />FOR ILLUSTRATION <br />PURPOSES ONLY. <br />This hypothetical example <br />assumes a 22% federal tax <br />withholding rate, a 7.05% <br />state tax withholding rate and <br />a 7.65% FICA (Social Security <br />and Medicare) tax rate. <br />Individual tax rates may vary <br />based on total taxable income <br />and filing status for the year. <br />