King County retirement information
HRA VEBA Overview:
A Health Reimbursement Arrangement (HRA) in a Voluntary Employees Beneficiary Association (VEBA) is a tax-free medical expense reimbursement account used to pay for qualified medical expenses for an individual, spouse and IRS-qualified dependents. Under the King County plan, VEBA accounts are funded by the 35 percent cash out of sick leave at the time of retirement from PERS, LEOFF 2, PSERS and the Seattle retirement system. Funds are deposited tax free into accounts held by a nonprofit, tax-exempt VEBA. In 2006, most King County employees through their bargaining units or as part of a non-represented employee group voted whether or not to participate in VEBA. The decision of the group applies to all retirements in that group during a three-year period, beginning January 1, 2007. In 2009, employees will have an opportunity to reconsider their participation in the VEBA for another three-year period. Check the King County VEBA Employee Groups List to determine whether you are in a VEBA employee group.
How HRA VEBA Works:
Retirement Triggers VEBA Sick Leave Cash Out Benefit.
To receive the sick leave cash out benefit with or without VEBA and any other retiree benefits, retiring employees must, prior to the last day of employment, advise King County of the intent to retire by completing a termination notice indicating that you have formally applied to the Department of Retirement Systems (DRS) for retirement benefits.
Employees who fail to notify the county of their intent to retire before the last day of employment will be considered to have terminated employment and will forfeit the sick leave cash out with or without VEBA. See Leaving Employment for more information.
Enroll or Forfeit. Retiring employees will have up to 12 months from their last day of employment with King County to submit a properly complete HRAVEBA enrollment form. Failure to do so will result in forfeiture of the sick leave cash out. (Note: They must have properly retired prior to the last day of employment with the county.)
Using the HRA VEBA:
Eligible retirees will complete an HRA VEBA Membership Enrollment Form at the time of retirement to open an account into which their sick leave cash out is directly deposited. Retiree funds are held by a non-profit, tax-exempt VEBA trust managed by a participant-elected board of trustees of city, county, and special purpose district representatives. Retirees can select from among several investment fund choices and can change investments easily. Accounts are subject to a monthly administrative fee. Claims for qualified medical expenses and insurance premiums are submitted to a third-party administrator for reimbursement. Retirees can access their accounts online; arrange for automatic payments of health insurance premiums and direct deposit of reimbursements; submit claims by mail, fax or electronically; and talk to a person if they have questions.
More Information:
See the links on the right for more on-line information. For questions about VEBA, your sick leave cash out benefit or when and how to get your retirement process started:
- Call Benefits and Retirement Operations at 206-684-1556 weekdays from 9:30 a.m.-3:30 p.m.
- E-mail kc.benefits@metrokc.gov anytime.