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Health Care Savings Plan (HCSP)


The Health Care Savings Plan (HCSP) is an employer-sponsored program approved by the Internal Revenue Service (IRS).  The HCSP allows qualifying employees to set aside money completely tax-free into an account to use to pay for eligible health care expenses after termination of employment with Ramsey County.  The plan is administered by the Minnesota State Retirement System.  Participants may choose among seven different investment options.  Assets in the account accumulate tax-free, and since payouts are used for approved health care expenses, they remain tax-free.  HCSP's may only be implemented for groups of employees; to qualify for tax-free status, the IRS requires that everyone in a particular group participates in the plan at the same level.

General Ramsey County Provisions

All benefits-eligible employees hired by Ramsey County on or after January 1, 2006, contribute 1% of gross regular salary to a Health Care Savings Plan account.

Employees hired between July 1, 1992 and December 31, 2005, had a one-time opportunity to elect to participate in the Health Care Savings Plan in lieu of eligibility to receive an employer contribution to retiree insurance.  Those employees who elected the HCSP contribute 1% of their gross regular salary to a Health Care Savings Plan account.

Ramsey County contributes toward the employee's HCSP beginning with the employee's five-year anniversary date with Ramsey County.  The employer contribution is $520 per year for employees with 5-9 years of service; $624 per year for employees with 10-14 years of service, and $728 per year for employees with 15 or more years of service.  The contribution is paid on a per pay period basis, and is pro-rated based on the number of hours on paid status in a pay period for both full-time and part-time employees.

Provisions Specific to Employee Groups

Unions

In addition to the general provision described above, each union may negotiate additional provisions for participation in the Health Care Savings Plan, including provisions for some or all of vacation pay-out and severance pay to be placed in the HCSP, and/or a flat amount or percentage of salary to be placed in the HCSP on an ongoing basis.  Listed below is a general summary of provisions, but be sure you refer to your union contract for the information that applies to you.

  • AFSCME Local 8 - Public Defenders - 100% severance pay
  • AFSCME Local 8 - County Attorney - 100% severance pay
  • AFSCME Local 8 - General County - 100% Separation Pay
  • AFSCME Local 8 - Professional - 100% Separation Pay
  • AFSCME Local 2599 - Nurses - 100% severance pay
  • Teamsters Local 320 - CCW - 100% severance pay
  • Teamsters Local 320 CO 1-2 - 100% severance pay
  • Teamsters Local 320 Deputy Sheriff/Sergeants - 75% severance pay 
  • IUOE Local 49 - 100% of vacation, severance and comp time upon termination
  • IUOE Local 70 - 100% of separation pay + 50% of vacation payout
  • Judicial District 2 AFSCME - 100% of separation/severance pay and 1% of gross pay
  • Tech Employee Association
    • 0-10 years of service - 0% contribution
    • 20+ years of service - 3% of annual salary + 100% severance + 100% vacation payout
  • LELS - Commanders
    • Employees promoted to Commander prior to 1-1-1998; 100% of severance pay
    • Employees promoted to Commander on or after 1-1-1998; 100% of vacation, accrued comp time, floating holiday, holiday reserve. Effective 1-1-2007,
      • employees hired prior to 1-1-1979 will contribute 5% of salary;
      • employees hired between 1-1-1979 and 12-31-1991 will contribute 1% of salary; and
      • employees hired after 1-1-1992 will contribute 3% of salary
                                                                                         

Unrepresented Employees

In addition to the general provisions described above, employees who are not represented by a union (Unrepresented Employees) are covered by the following provisions relating to terminal pay or salary deductions:

  • Salary Schedule 01 (Admin) - 50% of separation pay (effective 8-1-2012)
  • Salary Schedule 02 (Admin/Prof/Tech) - 25% of separation pay (effective 2005)
  • Salary Schedule 08 (Trades) - 100% of separation pay (effective 2005)
  • Salary Schedule 10 (Comm. Corr. Super) - 100% of separation pay (effective 2005)
  • Salary Schedule 31 (CO3) - 100% separation pay and 100% vacation pay (effective 2-1-2009)
  • Salary Schedule 98 (Dept. Head/Div Dir) - 50% of separation pay and 25% of vacation pay (effective 8/1/2012)
  • Salary Schedule 99 (Courts) - 75% of separation pay (effective 2005)
  • Salary Schedule 99 (Elected Officials) - $30 per pay period to be placed in HCSP (effective 2005)
  • Salary Schedule 99 (Unclassified) - Plan Eliminated effective 8/1/2012  NOTE: Money already contributed will remain in your HCSP account and continue to earn interest based on how you invest it.  It will be available to you for eligible health care expenses when you terminate employment with Ramsey County.

General Plan Information

Visit the Minnesota State Retirement System website for more information on the Health Care Savings Plan, including information on eligible expenses and how to submit a claim for reimbursement, and descriptions of investment options.