The program that the Village has adopted, which meets the IRS’s definition of a health reimbursement account, is the Retirement Health Savings (RHS) plan administered by MissionSquare Retirement. 

The RHS plan allows employees to have revenue, in various forms, contributed to their established account tax-deferred and to have eligible health care expenses reimbursed tax free. In taking advantage of this tax free opportunity to help pay for medical insurance upon retirement, the Village has structured a plan that consists of a mandatory funding requirement at retirement as defined by the Village of Mount Prospect and mandatory funding per specified group participation Similar to the 457 plans, employees will need to direct their monies within their RHS account according to their comfort level of investing.

RHS accounts are administered by Mission Square Retirement.

Additional information regarding Mandatory Funding can be found below:

 

Important Numbers and Info

RHS Plan Number: 800377
Mission Square Retirement Customer Service: 800-669-7400 

You may also contact the Village's MissionSquare Retirement Plan Specialist, Jeff Cook at 202-759-7042 or via e-mail: JCook@missionsq.org . 

 NOTE: IRS Revenue Ruling 2006-36 states that a non-spouse, non-dependent beneficiary cannot receive reimbursements from Retiree Health Savings (RHS) account after December 31, 2008. The Revenue Ruling stipulates that assets can only be designated to survivors, defined as a spouse and any eligible dependent(s).

According to MissionSquare Retirement, the definition of dependent per the IRS Revenue Ruling is: "Dependent is an individual that the RHS account holder can claim as a dependent on their tax return". If you would like to review the IRS's definition for yourself, please reference the following website, www.irs.gov IRS Notice 2002-45