If you were to retire today with a monthly pension of $3,000 and a monthly health insurance
cost of $600; you would be spending about 20% for health insurance coverage.
Assuming a 2% compounded annual cost of living pension increase, and health insurance
costs increasing 9% per year, in 20 years the pension benefit would be $4,460/mo. and
health insurance would be $3,085/moth, which would then represent almost 70% of the
monthly pension amount for health insurance alone!
AND, that doesn’t take into account the taxes you would need to pay to have $3,085 left for
health insurance out of your “net” pension payment amount.
THE JOINT POWERS PLAN
The Joint Powers Employee Benefit Authority is a California joint powers authority. Its
purpose is to provide employee benefit programs to agencies that contract with it.
Contracting agencies benefit from the economies of scale and expertise of JPBEA in
developing programs for its contracting agencies.
The Joint Powers HEALTH AND RETIREMENT ROLLOVER PLAN "HARRP" has been
developed to help you meet the problem of escalating post retirement health care
expenses. It may be used by you to pay health coverage costs on a pre-tax basis for you
and any eligible dependents you wish to cover upon termination of employment, usually at
retirement.
The JPEBA “Health And Retirement Rollover Plan's” [HARRP] major features are:
Allows you to utilize part of your accumulated deferred compensation account to pay for
health care tax free.
Your existing contributions to “Deferred compensation plans” (457, 403b –TSA’s, 401k etc.)
may be “rolled over” to the HARRP at termination of employment.
“Rolling over” funds is voluntary. There is no requirement that anyone rollover funds.
There is no limit on the amount that is “rolled over” but, the rollover amount designated for
Health Care is limited to the lesser of 25% or $41,000/year. The remaining of your rollover
will be paid to you based upon the option you select.
The Plan is portable. If you quit and go to work for another participating Public Agency you
could rollover your contributions again from your successor employers plan.
Health Care benefits are payable directly to your health care provider(s), or reimbursed to
you. – NO TAXES PAYABLE on health care benefits regardless of to whom paid/reimbursed.
Health Care benefits under the plan include: Medical Insurance (Doctors and Hospitals);
Dental Insurance; Vision Insurance; Qualified Long Term Care Insurance; for you and/or
any eligible dependent(s).
In case of your death the balance in your health care account balance continues may be
paid for the health care benefits of your eligible dependents.
Each account earns a guaranteed rate of interest. (No downside investment risk)
Individual account statements are provided to you annually.
Administration charge to each participant is $100 per year.
Any Public Agency in any State can contract with the Joint Powers to provide this plan,
HARRP, for employees at no cost to the Public Agency.
The Joint Powers Employee Benefit Authority is a Public Agency established in 1987 under
the provisions of Government Code Sections 6500 et seq.
This Joint Powers plan is for the exclusive benefit of participants and has its own IRS
Favorable Plan Determination Letter. The Plan is proprietary property of the Joint Powers
Employee Benefit Authority.
PLEASE CONTACT JPEBA FOR QUESTIONS OR INFORMATION
714-547-3150 or 775-588-8879
Fax 714-547-1455 Email jpatodd@aol.com
Bill Todd
Executive Director February 2004
