Here you will find information on your Special Pay Plan (SPP) or Health Reimbursement Arrangement (HRA) provided to you at retirement from your school district. If you are not sure if your employer is providing you with an SPP or HRA, please go to Your Plan to find out.
Special Pay Plan (SPP)
Should I take up yoga? Should I see that play on Broadway? I want to but how will I pay for this? These may be a few thoughts running through your mind post-retirement.
Have no fear, your Special Pay Plan is here. A type of 403(b) retirement plan, your Special Pay account has been set up for you by your employer with funds from unused sick leave, unused vacation pay and/or other retirement incentives.
Your employer’s contributions into your SPP are accessible upon retirement and are made on a pre-tax basis. You also save 7.65% on FICA taxes (which is Social Security and Medicare), leaving more money to take that trip to New York!
And while you’re reading that issue of SkyMall on the plane, the money in your Special Pay Plan will be earning interest.
This is your time, so go out there and live life fearlessly. Your Special Pay Plan will be there to back you up.
For answers to all your SPP questions, check out one of the following links:
Health Reimbursement Arrangement (HRA)
How an HRA works for you!
Retirement. A time typically reserved for travel, self-discovery and waking up late on a Wednesday because you can. What shouldn’t be allowed to slither its way into your hard-earned retirement is financial worry.
That’s where your Health Reimbursement Arrangement (or commonly shortened to HRA) comes in. Your employer set up an HRA specifically in your name to ensure you are financially supported when it comes to the medical expenses you incur during retirement.
The money contributed by your employer into your HRA is tax-free and is there to help offset your eligible out-of-pocket medical expenses. Best of all, while you’re sleeping in on that random Wednesday, your account is earning interest tax-free.
So sit back, sip some coffee and think about everything that’s ahead of you. One of which will not be worrying about how to pay for your medical expenses during retirement.
For answers to all your HRA questions, check out one of the following links: