4.13 SR 05-06-2024 - Laserfiche WebLink

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© 2012 Hitesman & Wold, P.A. City of Elk River Flexible Benefits Plan 38 ARTICLE XVI. HSA CONTRIBUTION FEATURE 16.1 Purpose. The purpose of this Article is to provide for the pre-tax funding of an HSA under this Plan as an Optional Benefit. 16.2 Separate Written Plan. For purposes of Section 223 of the Code, this Article shall constitute a separate written plan. To the extent necessary, other provisions of the Plan are incorporated by reference. 16.3 Definitions. (a) HSA means a health savings account under Section 223 of the Code established and owned by a Participant to which contributions are made under this portion of the Plan. The trustee or custodian of the HSA shall be selected by the Participant from among several Employer-approved trustees and custodians. The Employer does not sponsor a Participant’s HSA, and a Participant’s HSA is not an employer-sponsored group health plan. (b) HSA Contribution Feature means the portion of the Plan described in this Article, which consists of the ability to contribute to a Participant’s HSA through salary reduction and allocation of Employer Contributions, if any. (c) High Deductible Health Plan means a “qualifying high deductible health plan” under Section 223(c)(2) of the Code, including those not sponsored by the Employer. (d) Permitted Insurance or Permitted Coverage means: (1) insurance in which substantially all of the coverage relates to liabilities incurred under workers’ compensation laws, tort liabilities, liabilities related to ownership or use of property, or similar liabilities as specified by the IRS; (2) insurance for specified disease or illness (e.g., cancer insurance); (3) insurance that pays a fixed amount per day (or other period) of hospitalization (e.g., hospital indemnity insurance); (4) coverage for accidents, disability, dental care, vision care, preventive care, or long-term care; (5) some medical reimbursement accounts and health reimbursement arrangements (“HRAs”) (e.g., limited scope medical reimbursement accounts and HRAs, suspended HRAs, post-deductible medical reimbursement accounts and HRAs, and retirement HRAs); and (6) some wellness programs and employee assistance programs (e.g., those that do not provide significant benefits in the nature of non-preventive medical care or treatment). 16.4 Eligibility. To be eligible for HSA contributions, the Employee must: (a) be eligible to participate in this Plan under Section 3.1; (b) be covered by the High Deductible Health Plan; Page 131 of 254