There are several different HCSP funding sources. Negotiators & employers can use one or a combination of funding mechanisms.

For more details, see HCSP Sample Contract Language (pdf). These samples are not intended to be a recommendation from MSRS.

Contact your MSRS field representative to discuss contract language options. The rep is available to review contract language and provide feedback.

ACCEPTABLE funding sources (can use one or more options)

  • Ongoing payroll deductions (example: 1% of ongoing pay or $50 per pay period)

  • Severance (example: 100% of unused sick leave at termination or retirement)

  • Vacation or PTO conversion (example: 100% of unused vacation/PTO at termination of employment)

  • Employer contribution (example: Employer will contribute $200 each February. DO NOT refer to an employer contribution as a "match")

  • Excess leave balance (example: Comp time in excess of 50 hours on 12/31 will be contributed to the HCSP)

  • Early retirement incentive (example: An amount equal to $1,000 per year of service will be contributed to the HCSP)

UNACCEPTABLE funding sources

  • HCSP contributions in lieu of employer-sponsored medical insurance coverage (active employee waives the offer of coverage, or employee receives a stipend for being enrolled in single versus family coverage). This does not impact a terminated employee who waives employer-sponsored coverage continuation.

  • Individual grievance settlements

  • Individually negotiated contributions

  • Employer match

  • Transfer/rollover from other tax-preferred medical savings account

  • Elected officials may not receive severance derived from paid time off (state statute does not allow elected officials to earn paid time off).