| 1. |
A Health Spending Account (HSA) shall be established effective April 1, 2012 for all employees eligible for health plan benefits in accordance with this Collective Agreement. A sum of $750 for each eligible employee shall be allocated by the Employer to the HSA. |
| 2. |
In each year thereafter beginning April 1, 2013, a sum of $750 shall be allocated by the employer to the eligible employee’s HSA. |
| 3. |
The Parties understand the HSA will be implemented on September 1, 2012. |
| 4. |
In the first year of the HSA: |
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i. |
eligible employees who are active on September 1, 2012 shall be entitled to claim expenses from April 1, 2012 if they were also an active employee on April 1, 2012; and |
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ii. |
eligible employees who commence employment after April 1, 2012 shall be entitled to claim expenses from their date of commencement. |
| 5. |
The HSA year is from April 1 to March 31. Any unused allocation in an employee’s HSA at the end of the HSA year will be carried forward to the next HSA year. The unused allocation cannot be carried forward beyond one (1) HSA year. Any unused funds after the second year are forfeited back to the Employer in accordance with the Income Tax Act. Outstanding expenses which exceed the annual HSA allocation shall not be carried forward to the next HSA year. |
| 6. |
The HSA may be utilized by employees for the purpose of receiving reimbursement for health and dental expenses that are eligible medical expenses in accordance with the Income Tax Act. |
| 7. |
If the Employer contracts with a service provider for the administration of the HSA, the administration of the HSA shall be subject to and governed by the terms and conditions of the applicable contract for services. |
| 8. |
The HSA shall be implemented and administered in accordance with the Income Tax Act and all applicable regulations and guidelines. |
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Dated this 17th day of May, 2011 |
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