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Board hears proposal for post-retirement health reimbursement account for eligible staff
Summary
Staff presented a voluntary post-retirement health reimbursement account option tied to district payouts; employees must have a minimum payout ($3,000) to qualify and Pellon Benefits would meet individually with eligible staff to explain options.
District staff described a proposed post-retirement health reimbursement account (HRA) option intended to give retiring employees a tax-advantaged way to pay eligible medical expenses, including health insurance premiums. The optional plan would be administered through Pellon Benefits, which would meet with eligible employees individually to explain enrollment and options.
Staff explained eligibility criteria and limits: employees must have at least $3,000 in payout to make participation worthwhile under the plan design, and qualifying payouts generally follow the district’s accumulated PTO and payout practices for employees with 10 consecutive years of service. Presenters framed the HRA as a retention and recruitment tool to make the district’s total benefits package more competitive.
"Pellon benefits offers an option for employees to establish a health reimbursement account... the funds can be used for eligible... expenses upon retirement and the big one there is health insurance premium," the presenter said. Board members asked routine clarifying questions about participation counts and payout thresholds; staff said typical qualifying counts range from 10–12 retirees per year but the number varies.
