For Hennepin County employees
What is it?
- A public employer-sponsored program
- Save pre-tax money to pay post-employment medical expenses and/or health insurance premiums
- Plan for health care costs after you retire or terminate county employment
Who can participate?
Participation is defined by organized or non-organized employee status
- Contributions credited to your individual account
- You choose how to invest
- MSRS HCSP website
Manage Account / Make Changes /Forms
Contributions to the HCSP are pre-tax payroll deductions. Contributions and/or Severance Pay to the HCSP are excluded from Federal, State, Social Security and FICA taxes. All contributions, earnings growth and eligible reimbursements are 100% tax free. Participation in the HCSP does not affect your PERA retirement benefits. Participation in the HCSP reduces your overall taxable income and will therefore affect your future Social Security benefits. Example: if an employee contributed 1% of salary into an HCSP over a 35-year career, the result would be an approximate reduction of $6 per month in Social Security benefits.
The HCSP operates under the legal authority of the Laws of Minnesota as of 2001, Chapter 352.98 and under the federal IRS Governmental Trust under Section 115, governed under section 105 and 106, with many other revenue laws. The IRS formally allowed the HCSP in a July 2002 Private Letter Ruling to the Minnesota State Retirement System.
Transfers, Promotions, Demotions
Your participation in the HCSP could be affected by any one of the following changes:
- Organized employees moving to a Non-Organized position
- Non-Organized employees moving to an Organized position
- Non-Organized employee moving to another Non-Organized position
You will adopt the participation structure of the employee group into which you move:
- If you are currently not a participant in the HCSP but accept a job within a group that does participate in the HCSP, you will begin to participate the following pay period.
- If you currently participate in the HCSP and move to a position that has not adopted HCSP participation, your money will remain in the account. You will continue to manage the investment in your account. But you will not be able to contribute new money into the account as long as you are in an employee group that is not participating in the HCSP.
Retirement & Termination
HCSP after leaving county employment.
Investments, Fees & Beneficiaries
- Contributions are credited to your individual account. You choose how to invest your money in the funds that are offered by MSRS. For a current prospectus please visit: www.msrs.state.mn.us/hcsp/index.htmls.
- MSRS deducts an annual administrative fee of 0.65% (.054% monthly) from your account. This fee is prorated and deducted monthly from your balance. For example, if you have an account value of $10,000, $5.42 per month would be deducted from your account. The maximum annual fee is $140 or $11.67 per month. All fees are subject to change. In addition to the administrative fee there are annual fund fees.
- You may choose a beneficiary for your HCSP by completing a beneficiary designation form and returning it to MSRS