Employers use Plan Service Center (PSC) to remit contributions to either the "active" or "sev/eligible for reimbursement" money source.  


Why money sources are necessary

Many employees change from one Minnesota public employer to another throughout their career. When they change public employers they may have limited access to their HCSP funds. If they return to work with the same employer, they may have limited or no access to their funds.

Having multiple money sources prevents payouts to an employee of contributions that are not yet eligible for reimbursements. It is important that employers understand the difference between the money sources so that contributions are remitted to the correct source.

"ACTIVE" money source

Contributions made while the participant is still employed with the employer sponsoring the HCSP should be applied to the "active" money source. 

Funds in the active money source cannot be accessed by the employee until they terminate or retire.

Funds remain in active money source until the employer adds the termination date to the account, at which time the balance will automatically transfer to the "sev/eligible for reimbursement" source.

The first time funds are applied to this money source, MSRS will send the employee an HCSP welcome packet that includes plan information and a beneficiary form.

"SEV/ELIGIBLE FOR REIMBURSEMENT" money source

The employee has access to the funds in this money source for the reimbursement of out-of-pocket healthcare costs incurred after separation of service.There are two ways contributions are applied to this source: 

  • A termination date entered by the employer on PSC will move money from the "active"  money source to "sev/eligible for reimbursement" source.  

  • When employee terminates, employer should remit severance to this source using PSC.  Do not forget to add the employee's termination date. MSRS cannot process a reimbursement unless there is a termination date on the account.

The first time funds are applied to this money source (either by a termination date or the employer contributed severance), MSRS will send the employee an HCSP welcome packet that includes plan information and forms they need to request a reimbursement.