1. VEBA Service Group a Division of Gallagher Benefit Services, Inc.

2. Presented by: Brian Riehs ▪ February 4, 2014

3.  Plan participation confirmation  Contribution instructions  Plan documents  Plan design change  Premium Tax Credit  Administrative reminders  General plan reminders  Common funding methods  See you at WASBO!

4.  Plan participation confirmation  Contribution instructions  Plan documents  Premium Tax Credit

5.  New Employer Adoption Agreement  Plan Participation Confirmation form  Contributions will not be processed without first receiving either one of the above

6.  “001” for Standard HRA  “002” for Post-separation HRA  New Contribution Template  Old template no longer accepted

7.  Standard HRA Plan (Full Benefits)  Standard HRA Plan (Pre- Medicare Limited-Scope)  Post-separation HRA Plan (Full Benefits)  Post-separation HRA Plan (Pre- Medicare Limited-Scope)

8.  Standard HRA Plan  For employees who are eligible to enroll in your qualified group health plan and  Are enrolled in or covered by your plan; or  Attest that they are enrolled in or covered by another qualified group health plan  Reimburses all qualified health care expenses (in-service and post-separation)

9.  Post-separation HRA Plan  For all eligible employees, including those who do not qualify for Standard HRA Plan contributions  Reimburses all qualified health care expenses (post-separation only)  Claims eligibility suspended for re- hires during such re-employment period

10.  Pre-Medicare Limited-Scope (law requires separate plan document)  Available option for Standard and Post-separation HRA participants who purchase coverage through an exchange and want to become eligible for the Premium Tax Credit  Irrevocable election until Medicare eligibility  Reimburses certain dental, vision, and long-term care expenses and premiums only

11.  If a participant (or a family member) purchases coverage through a marketplace exchange and wants to qualify for the Premium Tax Credit first need to use up, limit, or waive their HRA (VEBA) benefits  Premiums for exchange coverage may be reimbursed; premiums subsidized by the Premium Tax Credit cannot be reimbursed  More information  www.irs.gov/uac/The-Premium-Tax-Credit www.irs.gov/uac/The-Premium-Tax-Credit  Facts About Premium Tax Credit handout available online  Participants received information in January 2014 Participant News

12.  No Form W-2 reporting  Use new contribution template  Use updated Memorandum of Understanding and Employer Policy language samples  Submit Plan Design Change Form to report new participating groups, funding method changes/additions, etc.  Fully complete EMPLOYER shaded box when submitting Enrollment Forms

13.  Don’t submit negative contributions; request a Mistake of Fact Notification form to correct contribution overpayments  Don’t discriminate; change percent-of-pay contributions to a uniform, flat-dollar amount  Operate under the 1990 “all or none” IRS private letter ruling; it is more conservative than the 1993 “excess sick leave forfeiture” ruling  Avoid small groups for VEBA purposes; voting groups should have a least five members

14.  New investment options effective October 2013  PCORI fee (currently $2/year per participant) is required by federal health care reform; it is not an administrative fee  Legally-married, same-sex spouses now covered  Young adult children covered through end of calendar year in which they turn age 26

15.  HSA contribution eligibility requires limited-purpose HRA (VEBA) coverage  If still working and on Medicare, VEBA pays first (unless limited-purpose VEBA coverage is elected)  Participants who purchase medical coverage through a marketplace exchange and want to qualify for the Premium Tax Credit may need to first use up, limit, or waive their VEBA benefits

16.  Mandatory employee contributions  Sick leave cash out (retirement and annual)  Vacation, personal, other leave cash outs  Part or all of future pay raise or COLA  Contribution after electing lower-cost medical plan

17.  April 23-25  Attend our presentations, including VEBA Basics on April 24 @ 1:20 p.m.  Stop by our booth!