Employer participation is voluntary.

The HCSP funding source(s) and contribution amount are determined as follows:

• If covered by a bargaining unit, contributions to the plan must be agreed upon by both the bargaining unit and employer and written into a collective bargaining agreement or Memorandum of Understanding (MOU)
• If not covered by a bargaining unit, contributions to the plan must be agreed upon by the employer and included in a written personnel policy.

HCSP contract language must be reviewed and approved by MSRS. Approval must be obtained for new employer enrollments as well as any subsequent revisions to the HCSP language. MSRS requires a minimum 2-year commitment before the employer/bargaining unit can modify the existing HCSP contract language.

Participation in the HCSP is not necessarily a permanent arrangement for the employer

Employee participation is mandatory.

Due to the tax-free nature of the HCSP, the IRS requires that all employees participate in the plan adopted by their bargaining unit or employer. Only employees eligible to waive participation may opt out of the Plan.

Waiving participation. You may opt out of the plan if you:

• are eligible for TRICARE retiree benefits or V.A. medical benefits due to a service-connected disability;
• are a foreign national; or
• have comprehensive health care insurance through another documented source.
  Please note: The insurance coverage must be provided by a source other than your current employer who is sponsoring the HCSP. The insurance must be provided until death and 70 percent of the cost is covered by the employer.

To opt out of the plan you must complete a waiver form and provide supporting documentation. MSRS will review your request to determine if you are eligible to waive participation. Please contact the MSRS Service Center at 1-800-657-5757 to obtain a waiver form.

Due to the tax-free nature of the HCSP, MSRS is unable to refund or reverse contributions that were applied to the account prior to the approval of the waiver. The funds will remain in the account and can be accessed post-employment for reimbursement of out-of-pocket medical expenses. If you believe the contribution was remitted by the employer in error, please contact your human resource/benefits department to discuss your options.

An election to waive participation is irrevocable. You will not have another opportunity to participate in the HCSP, even if you change jobs and are employed by another Minnesota public employer.