City of Sarasota. Introduction to Health Reimbursement Arrangements “HRAs”. Presented by: Mark R. Wilkerson, CFP HRA Consultant December 1, 2004. Topics. HRA Team Growing Need HRA Basics HRA Advantages Eligible Expenses Trust Structures
Introduction to Health Reimbursement Arrangements “HRAs”
Mark R. Wilkerson, CFP
December 1, 2004
Adoption Implementation and Ongoing Administrative Process
Group Structures & Voting
Employer Funding Sources
Aggressive HRA Plan Designs
VALIC National HRA Plan
The projections listed above are the amounts that a Washington retiree and spouse could spend during their lifetime assuming retirement at age 60, participation in the State of Washington PEBB Uniform Medical Plan, living a normal life expectancy to age 84, assuming purchase of medical insurance and dental insurance for retiree and spouse, plus annual out-of-pocket expenditures of $500 on non-covered items. We assume 5% annual increases for premiums and non-covered out-of-pocket costs.
Current PEBB premiums before age 65 for retiree and spouse are $7,700 per year for medical insurance and $850 per year for dental insurance. Current PEBB Medicare supplement premiums are $3,500 per year for retiree and spouse.
What will my account be worth when I retire?
Monthly Employer Contribution
Balance at age 65 w/ 5% return
25% federal income tax
7.65% FICA tax
$40,000 benefit available
Turnkey Plan – Services Provided
New employee education
Audit/Tax forms filed