Effective July 1, 2019, supplemental unemployment benefit fund balances of existing retirees or new retirees going forward will automatically be transferred into their HRA accounts.
Additionally, as some retirees could have a full HRA account, as well as a full SUB Fund account, the Trustees have voted to increase the HRA limit for retirees from $17,000.00 to $25,000.00.
For example, if a member had $8,000 in his or her S.U.B. Fund and had a full HRA account ($17,000.00) upon his or her retirement, the Plan would transfer over to this participants HRA account the $8,000.00. The new combined total of that retiree’s HRA account would then be $25,000.00.
Example #2: If upon retirement a member had $1,600.00 in his or her S.U.B. Fund account and $9,800.00 dollars in their HRA account, their S.U.B. Fund balance of $1,600.00 would be transferred to their HRA account which would subsequently total $11,400.00.
How does the transfer of the balance help a retiree?
Under the provisions of the S.U.B. Fund, retirees can only utilize S.U.B. Fund balances to offset self-payment premiums to the Health and Benefit Plan.