Frequently Asked Questions about the Retirement Security Fund
Get a handle on the details. Check out some common questions about the new Retirement Security Fund (RSF) below. Still have questions? Let us know! We'd love to answer them and add them to the list.
How do I use my RSF fund?
Each quarter, your RSF fund will be deposited into a default account with your name at BPAS. Use your fund to offset medical costs on a monthly basis, or leave the fund in your account to earn interest and then offset any medical costs at a later date. Your fund will automatically be invested into the Stable Value Fund, but you can change the investment fund at any time once you are set up in BPAS.
When does my RSF funding begin?
Your funding will begin during the first month following the quarter in which you retire. All eligible retirees from the previous quarter will receive the full 3-month contribution regardless of when in the previous quarter they retired.
For example, if you retire on March 15, 2021, you will receive the full January–March RSF benefit in April of 2021.
How often do I receive my RSF benefit?
Quarterly. Eligible members will receive 28 installments deposited on a quarterly basis, or four payments a year for seven years.
Is there a survivor benefit to my RSF fund?
If a retiree dies during the 7-year Benefit Duration Period, the Trust will continue to fund the member’s RSF at 50% if there is a surviving spouse, until the end of the 7-year benefit period. If there is no surviving spouse, funding will cease and an IRS-eligible dependent may spend down the account. If there are no tax dependents remaining, the funds will be forfeited and returned to the Trust.
Are domestic partners eligible?
Domestic partners are not eligible dependents unless they meet the criteria in Internal Revenue Code Section 152. The health plan currently permits domestic partners to participate in the plan if they meet these requirements.
The requirements are that the individual: 1) receives more than half of their support from the taxpayer, 2) the home of the taxpayer is their principal residence, and 3) the relationship is not in violation of the law (IRS Ruling 200339001).
Who manages my VEBA?
BPAS stands for Benefit Plan Administrators Service. BPAS was hired by the Trust to administrate your VEBA, which you can use to cover qualified, out-of-pocket medical expenses for you and your eligible dependents.
To learn more about BPAS visit their website at BPAS.com