Due to the tax-free nature of the HCSP, individual choice is NOT allowed.

  • Employees who meet the HCSP eligibility requirements set forth in the bargaining agreement or personnel policy may not opt out of the Plan except in limited circumstances as described in Waiving Participation.

  • HCSP contracts cannot be written for an individual employee, even if that employee negotiates their own employment contract with the employer (see section below for more detail).

  • HCSP contracts cannot accommodate, nor have the appearance of accommodating, individual(s) within the group. 

  • All employees covered by the HCSP contract language must participate in the same manner. For example, individual employees cannot choose between an HCSP and another medical or retirement savings plan.

  • Constructive receipt is not allowed. Individual employees cannot choose to receive a cash payout in lieu of participation in the HCSP. 

  • Individuals cannot receive a contribution to their HCSP account because they waived employer-sponsored medical insurance coverage.

 

How employees who negotiate their own employment contract can participate in the HCSP
Due to the tax-free nature of the HCSP, individual employees cannot negotiate to participate in the plan. However, non-union employees who have similar positions or a similar job level may form a group of like employees to negotiate HCSP contract language. For example, school district administrators could negotiate the benefit as a group. See sample language (pdf).

Here is what you need to know:

  • All employees who have a similar position or job level must participate. The individual employee cannot choose whether or not to participate.

  • The HCSP policy should be separate from the individual employment/benefit contract. The individual contract could refer to the HCSP policy.

  • As with any HCSP contracts, the policy must use allowable funding sources and cannot have the appearance of accommodating individual employees.

  • The policy should define what positions are covered. For example, if you identify the group as "administrators," then list the job titles covered by the HCSP policy.

  • If a new employee is hired or a new position added, that employee must be covered by the HCSP policy. For example, if a school district hires a new director, the employee must be covered by the HCSP policy negotiated by the directors. They cannot negotiate their funding source or choose not to participate. This is why it is advisable that the HCSP policy be separate from the individually negotiated contracts.

  • Like any other group (union or nonunion), the HCSP contract language must be reviewed and approved by MSRS. Each time the language is re-negotiated, MSRS must review and approve.The contract language can be modified every 2 years.