In a recent court ruling on a case involving the City of Sheboygan in Wisconsin, the judge ruled surprisingly that distributions from an HRA (Health Reimbursement Arrangement) need to be included in calculating the overtime rate of pay unless the distribution was made from an irrevocable trust.
If you currently have an HRA with National Insurance Services, you have nothing to worry about. Our HRAs have underlying irrevocable benefit trusts that provide interest earnings and hold the assets until they are needed to reimburse eligible medical expenses. If you have any questions about this ruling or HRAs, your Retirement Income Representative at 800.627.3660.