Health Reimbursement Arrangement (HRA)

Your HRA Credit: A Benefit Worth Understanding

Let's clear up three of the more persistent misunderstandings about the HRA Credit Benefit.

First, no portion of an employee's wages, salary, or other compensation is deducted or withheld to fund the HRA Credit Benefit.

The Health Reimbursement Arrangement (HRA) Credit Benefit is funded solely through Health and Benefit Fund contributions made by contributing employers in accordance with the applicable collective bargaining agreement, participation agreement, or other agreement governing participation in the Plan and participation for this specific benefit.

And before anyone asks, no, you cannot send us a check to increase your HRA Credit Benefit. We appreciate the enthusiasm, admire the initiative, and frankly wish every aspect of employee benefits administration inspired this level of voluntary participation.

But that's not how this works. Your HRA Credit Benefit is funded exclusively through employer contributions. Personal contributions are not permitted

Secondly, the HRA Credit Benefit is not a vested benefits. They represent benefits available under the Plan's provisions, not an individual ownership interest in the Fund's assets.

Until properly paid as an eligible benefit, the underlying credits remains assets of the Health and Benefit Fund, held and administered in accordance with the Plan's governing documents.

So, no. Your HRA Credit Benefit is not credits you personally own. It represents healthcare reimbursement benefits available to you under the Plan's rules, not a personal bank account.

And while we appreciate the temptation to regard every dollar appearing next to your name as your personal property, that's not quite how this particular arrangement works.

It's a healthcare benefit, not a bank account. And that is an important distinction.

HRA Account Maximums

The Board of Trustees establishes your HRA account maximum and annual carryforward limits.

For active employees, the current maximum is $17,000.00.

Not exactly pocket change. Especially considering you contribute precisely nothing toward this benefit.

The objective isn't to accumulate an impressive number on a screen. It's to help pay eligible healthcare expenses when you need it.

Which brings us to the perennial favorites:

"Where Does the Rest of MY Money Go?" and “I Pay For These Benefits.”

Regarding the former, an excellent question. Apart from one rather spectacular misunderstanding.

It's not your money.

As to the latter, no. You don’t pay for this benefit. Your HRA is funded entirely through employer contributions. The money remains an asset of the Health and Benefit Fund. Your Credit balance represents reimbursement benefits available under the Plan, not personal ownership of its assets.

So where do contributions go once you've reached $17,000?

Look around you.

They continue supporting the benefits that make this Fund work for everyone.

They help provide healthcare coverage for apprentices just beginning their careers, whose contributions may not yet be sufficient to cover the full cost of their benefits.

And if you were once an apprentice yourself, remember this: Someone helped make those benefits possible for you, too.

They help preserve healthcare eligibility during qualifying periods away from work, including those covered by the Plan's disability, workers' compensation, and military service provisions.

They help provide healthcare for your fellow brothers and sisters, their spouses, and their children.

They help provide for coverage during your retirement years.

And they help pay for the care that none of us ever hopes to need.

Cancer treatments. Organ transplants. Catastrophic illnesses. Medical care that can cost hundreds of thousands of dollars. Sometimes millions.

These are not hypothetical expenses. They are real costs, incurred by real people, often at the most difficult moments of their lives.

And that is precisely why this Fund exists.

Not simply to accumulate credits in individual accounts, but to make meaningful healthcare coverage possible for the people who depend upon it.

Because the true value of a collectively funded benefit is not measured solely by what it provides for you. It is also measured by what it makes possible for everyone. Stated differently: When one of us faces a burden too great to carry alone, the rest of us help carry it.

That's not an accounting mystery. It's the entire point of the Fund.

Today, $17,000 might seem like a fortune. Tomorrow, it could look like the opening act.

And should that day arrive, you'll be grateful your healthcare protection isn't limited to a number on a screen.

The real value of the Fund isn't how much any one person accumulates. It's how well we protect one another when it matters most.

And if you never need that kind of financial protection?

Wonderful.

Consider yourself fortunate enough to have helped provide it to someone who did.

That's not contributions lost.

That's solidarity at work.

HRA Account Creation for Newly Eligible and Reinstated

Participants

For employees who first become eligible, or regain eligibility, on or after October 1, 2018, an HRA account is established only after the Fund receives employer contributions representing at least 450 hours of work, or the applicable prorated requirement for traveling employees.

But there's an important distinction.

Only employer contributions attributable to hours exceeding that requirement, beginning with the first calendar quarter AFTER eligibility is established or reinstated, may generate HRA credits.

Contributions attributable to the first 450 hours (or the applicable prorated threshold) do not generate HRA credits. Nor do contributions from the calendar quarter in which eligibility was first established or reinstated.

The important takeaway is simple: First, satisfy the applicable quarterly requirement mention directly above. Then, qualifying excess contributions may be credited to your HRA account according to the Plan's rules.

When Are HRA Credits Deposited?

Here's how it works:

Excess employer contributions attributable to a particular work quarter are calculated and credited to your HRA account during the corresponding quarter of coverage, following the Plan's established administrative lag quarter.

Two Important Clarifications

First, the mysterious administrative lag quarter.

Yes, there are three whole months missing between both of those columns. That is intentional. No one forgot to fill them in, and our printer hasn't developed a philosophical objection to ink.

They represent the administrative lag quarter between when you work and when your corresponding HRA credit becomes available.

Simply put, excess contributions earned during one calendar quarter are not credited to your HRA during the next quarter, but during the quarter after that.

Yes, an entire quarter in between. Think of it as a waiting room for these credits, minus the outdated magazines.

We didn't invent the calendar. We're simply explaining how your benefits navigate it.

Second, a few words about the word “during.”

When we say HRA credits are posted during the corresponding quarter of coverage, we mean exactly that: sometime during that quarter.

Not necessarily the first day. Or the first week. And certainly not the precise moment you decide to check your balance.

We make every reasonable effort to credit contributions promptly. Unfortunately, administrative reality occasionally has other plans.

Traveling participants sometimes fail to clear in with the Local where they're working, delaying reciprocity. Others provide incorrect Social Security numbers, leaving us with contributions belonging to someone our records insist doesn't exist.

And then there are employer reporting errors.

We'd love to call those occasional. Unfortunately, that would require a rather imaginative interpretation of the word occasional.

The result? What should be simple accounting becomes a detective investigation involving missing information, conflicting identities, and contributions looking for their rightful owner.

And unlike television detectives, we don't always solve the mystery in 42 minutes, including commercials.

Our priority is to credit your HRA as promptly as possible, once the contributions have been properly identified and reconciled.

Because getting your money credited quickly matters. Getting it credited to the right person matters even more.

If our timetable doesn't suit you, you're welcome to explore other healthcare savings arrangements at your own expense. Not through us, of course. We don't offer that particular adventure.

And if you're counting on those HRA credits to make ends meet, we understand the urgency. But an urgent financial need doesn't necessarily mean the Fund created it—or can responsibly resolve it on demand.

Would immediate access be preferable? Certainly. But you're not the only participant we serve. That's not an excuse. It's a fact. And accuracy doesn't become optional simply because patience becomes inconvenient.

So before declaring that the Fund is “screwing you,” or offering an even more colorful assessment of our competence, consider something that tends to get overlooked when the conversation turns from collective protection to personal convenience.

The strength of this Fund isn't measured by what you personally take out. It's measured by the protection available when you need more than you could ever have put in.

Again, that is not credits being delayed, it is solidarity at work.

Funny how solidarity becomes considerably more appealing when the medical bills arrive and the Fund is paying hundreds of thousands, sometimes millions, on your behalf.

Do you suppose your employers contributed that much over your entire career?

Quite possibly not.

And that's precisely the point of solidarity. When you need less, you help protect those who need more. When you need more, they're there to help protect you.

So, when should you contact us?

If your eligible excess contributions haven't appeared in your HRA by the end of the corresponding quarter of coverage, give the Fund Office a call during the following quarter. We'll be happy to investigate.

Call earlier, and don't be surprised if we politely direct you to the preceding section explaining the administrative realities of the HRA Credit Benefit.

Rest assured, we'll do our best, but your urgency doesn't supersede the Fund's obligation to calculate everyone's credits accurately and post them consistently.

Yes. And despite what your parents may have told you, you're not quite so special that the Plan's rules cease to apply when they become inconvenient.

And if you've read the Summary Plan Description, you'll already know that the Plan doesn't permit exceptions to these or any Fund requirements.

Yes, even for you.

We appreciate your enthusiasm. Unfortunately, calling before the process is complete doesn't make it complete. It simply means we've now had the pleasure of explaining it twice.

In the meantime, consider paying eligible healthcare expenses with your personal credit card and requesting reimbursement once the corresponding HRA funds become available.

We've already explained the possible advantages of this approach elsewhere, so we'll spare you the encore.

We're always happy to help and happy to speak to everyone. What we're considerably less enthusiastic about is explaining the same thing six times. Or seven. Or, good heavens, often enough to qualify as a continuing education program.

And please don't take offense if you call, indignation fully charged, only to find yourself gently directed back to this very passage.

It's not that we don't want to help. It's simply that reading what we've already explained is a rather efficient way of avoiding the need to explain it again.

Besides, we'd hate for all this magnificent writing to have been for nothing.

You're welcome.

Here Are Some Other Important Things You Should Be Aware Off About This Particular Benefit

1.​ Traveling, Reciprocity, and Your HRA: When 450 Hours Isn't Quite 450 Hours?

Working in another I.B.E.W. Local's jurisdiction? Good news. Your reciprocated Health and Benefit contributions count toward your quarterly HRA calculation.

Naturally, there's a catch. This is employee benefits, after all. Even arithmetic comes with terms and conditions.

If the away Local contributes less per hour than Local 697, you'll need to work more than 450 hours before generating eligible excess contributions for your HRA.

Why? Simple. Lower contributions mean more hours are needed to reach the same funding threshold.

And before declaring this terribly unfair, consider one rather inconvenient fact:

When the away Local contributes less per hour than Local 697 hourly rate, the Fund receives less money to help provide your benefits.

The math isn't unfair. It's simply refusing to pretend that less money is somehow more.

An admittedly disappointing feature of arithmetic, but one we're not particularly inclined to apologize for.

On the bright side, your eligibility may still be protected under applicable reciprocity rules.

That's a legal obligation, however, not a financial miracle. And while the Fund honors that obligation, let's not confuse compliance with sustainability. Paying for more than you receive has never been a particularly promising long-term financial strategy.

Nevertheless, and in plain English, when the value of the reciprocated hourly contributions fall short, your fellow participants help subsidize your eligibility.

Sound familiar? It should. The same principle helped support your benefits as an apprentice, or when you’re receiving short-term disability or workers compensation.

Was that unfair to everyone else? Or was it solidarity doing precisely what solidarity is supposed to do?

And while we're asking uncomfortable questions, have you ever offered to repay that subsidy? Or even said thank you?

No. No, you haven't.

And we weren't expecting either. Although not expecting gratitude and believing none is warranted are two entirely different things.

After all, you didn't personally fund those subsidies or earn them through additional contributions. You benefited from the collective support of others.

Funny how that arrangement rarely seems unfair when you're the one benefiting from it.

Apparently, solidarity is a wonderful principle. Until someone else needs it.

And if you’re still thinking about complaining, that’s fine. Just don’t get bent out of shape when we inform you that helping subsidize your healthcare eligibility is one thing.

Awarding additional HRA credits on contributions already insufficient to support that coverage is quite another.

Remember, fairness isn't simply about what you believe you should receive. It's also about what you're asking everyone else to pay for.

2.​ Your HRA Debit Card: A Convenient Little Piece of Plastic With Some Very Important Rules

Your HRA debit card makes paying eligible healthcare expenses easier. But remember: it's a tax-advantaged benefit, not a general-purpose debit card with a particularly generous spending limit.

The IRS requires transactions to be verified, or substantiated, as eligible medical expenses.

Many are verified automatically. Unfortunately, many isn't all. And that's where the administrative entertainment begins.

If a transaction requires documentation, you have 60 calendar days from the transaction date to provide it.

Fail to do so, and your debit card will be deactivated.

Not because we're feeling particularly uncharitable, but because tax advantages come with rules. And the IRS, rather famously, isn't known for its flexibility.

Sounds harsh? It isn't. We're all responsible adults here. Or at least that's the working assumption.

So before using this benefit, we strongly encourage you to do something rather revolutionary: read its provisions in the Summary Plan Description (SPD). All of it. We explain everything you need to know about this benefit and the debit card.

And look at that. We've conveniently provided a copy right on the left side of this page.

Don't see it? Scroll up.

We've made the information easy to find. Understanding it, however, does require a little participation on your part.

Lastly, use the Debit Card responsible. Enjoy the convenience. Take advantage of everything it makes simpler.

Just give it the small amount of attention required to keep that convenience working.

A Deactivated Card Is Not a Lost Benefit.

If your HRA debit card is deactivated, your available HRA balance does not disappear. The funds remain in your account, subject to the Plan's rules, and you may continue to request reimbursement for eligible expenses.

Much like the Medical Reimbursement Plan (MRP) that preceded it, the HRA allows you to submit reimbursement requests manually. Unlike the former MRP, however, you may also submit those requests electronically.

That is meaningful progress. And it is worth understanding.

So. Since the MRP, we’ve provided both a debit card and a simpler process. So, more convenient access. And, let’s not overlook substantially higher limits on the HRA credit balances participants may accumulate since the MRP was in effect.

One Final Distinction—One That Shouldn't Need Explaining

There is one final point worth making. And, rather remarkably, it is one that still needs to be made.

Membership is not the same as understanding. And that distinction matters.

Several times a month, we hear participants indignantly state to us how many years they have been members of the Union, as though longevity alone should somehow determine how the Fund administers their benefits.

We respect those years of membership. They represent a commitment to the trade, the Union, and the people who make both stronger.

But respect for your years of membership and an exception to the Plan's rules are two entirely different things.

And confusing one with the other does neither you nor the Fund any favors.

Put simply—and because the distinction bears repeating—Union membership and eligibility for benefits under the Health and Benefit Fund are two entirely different things. One does not, by itself, establish the other.

The Fund is governed by its Plan provisions, not by the number of years someone has carried a Union card. Eligibility, benefits, and administrative requirements are determined by those provisions, which must be applied consistently and fairly to every participant.

Twenty years of membership does not change those rules. Neither does thirty. Nor should it.

And that is precisely the point.

There is an important distinction between maintaining Union membership and actively participating in the life of the Local, attending both Local monthly membership meetings and Benefit Funds educational meetings, asking questions, and making the effort to understand the benefits you have earned.

Paying dues maintains membership. It does not, by itself, demonstrate an understanding of those benefits or the responsibilities and requirements that accompany them.

Years of membership deserve recognition and respect. But longevity is not a substitute for knowledge, and seniority does not create an exception to the rules.

Those who take the time to attend meetings, ask questions, and understand their benefits are better equipped to make informed decisions, recognize opportunities, and avoid unnecessary misunderstandings.

To those of you who make that effort, thank you. Your engagement matters, and it does not go unnoticed.

For those who believe that years of membership alone should somehow substitute for that effort, there is one distinction we would respectfully, but unmistakably, emphasize:

Membership reflects a commitment. Participation demonstrates engagement. But understanding your benefits requires something more: the willingness to become informed.

Make no mistake, the Fund's responsibility is not to give greater weight to an argument simply because it is accompanied by a longer history of Union membership.

And if years of membership are offered as a reason for special consideration, there is a fair question worth asking:

If you have been a member for that many years, shouldn't those years also have provided an opportunity to understand how your benefits work?

After all, the information is not a closely guarded secret. The Plan's provisions are available, educational opportunities are provided, and questions are always welcome.

Years of membership deserve respect. But they also provide years of opportunity to become informed.

And to be clear, experience may earn recognition. It does not create exceptions to the rules. Nor does it replace the responsibility to understand them.

And that brings us to the point that matters most.

The Fund's responsibility is not to reward longevity, accommodate the loudest objection, or make exceptions based on who has been around the longest.

It is to administer the benefits promised under the Plan, accurately, consistently, and without favoritism.

Not because that is always the most popular answer.

Because it is the right one.

In conclusion, we encourage every participant to take an active interest in the benefits they have earned. Attend educational meetings. Ask questions. Read the information provided. Understand not only what the Plan offers, but also how those benefits work and the conditions under which they are available.

Because understanding your benefits before a question arises is far more valuable than discovering the rules only after something has not gone as expected.

Your years of membership deserve respect. Your benefits deserve accurate administration. Neither should be confused with the other.

That is not bureaucracy.

That is fairness.