RETIREE HEALTHCARE FUNDING PLAN

Imagine a new benefit program that allows your member's flexible, pre-tax contributions that accumulate and compound tax-free to pre-fund the future cost of health care expenses. Participants can take tax-free distributions at separation of service without penalties and taxes for qualified medical expenses. Assets are held in a secured trust and are protected from creditors of the employer. By making this plan available to your members you can help insure that retirement monies will be spent on living expenses not medical expenses.

RHFP is a nation-wide health care savings plan that provides a source of tax-free funds to pay for the cost of health care expenses for your members, their spouses and qualified dependents. The account may be used to pay for any qualified post-retirement medical, dental, or vision out-of-pocket expenses (deductibles, co-payments, co-insurance, etc.), plus post-retirement insurance premiums for medical, dental, vision (including COBRA premiums), qualified long-term care premiums, Medicare Part B premiums, Medicare Part D premiums, and Medicare supplement insurance plan premiums.

Group Benefit Associates built this plan for the Illinois Public Pension Fund Association which helped them to create a unique program for Illinois public sector employees interested in helping their members deal with post retirement health care funding. RHFP allows employees to pre-fund the future cost of health care expenses with Pre-Tax Contributions while the employees are still working.

All of the options available contain the following common elements:

• Pre-Tax Contributions
• Tax-Free Accumulation
• Tax-Free Distribution of Funds for Covered Benefits
• Plan Executed and Sponsored by Union or Employer
• Plan Can be Sponsored by Collective Bargaining Unit or Benevolent Association

At separation of service, RHFP provides a tax and penalty free method for the payment of medical premiums along with out of pocket medical expenses. Pre-Retirement access is available for such items as Long Term Care Insurance and Disability Benefits.

If an organization prefers The Declared Benefit VEBA approach, we will assist each employer with the developement of an individually customized and priced program.

Group Benefit Associates will customize Post Retirement Health Care Solutions to meet your organization's specific needs. The program can include any of the following plan designs:

RHFP (Enhanced VEBA)

Inherent Function Grantor Trust

VEBA

• Defined Contribution
• Declared Benefit

Let us design the program that is best for your organization. Please contact Don Hook at 773-427-2064 for additional information.