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Plan Design Decisions Eligible groups The plan may cover all employees, collective bargaining groups or other designated groups, provided such groups are not designed to provide employees individual choice regarding participation or amount of contribution. Contributions Contributions can be an annual or monthly flat sum, a mandatory conversion of excess sick and/ or vacation days (annually or upon termination or retirement) and, in some instances, a contribution of unused benefit dollars. Effective date and plan year The employer will choose an initial effective date and may choose a plan year based on any calendar quarter. Participant eligibility date The employer will choose the date upon which an employee is eligible to become a participant and receive contributions (e.g., the first day of the month in which an employer contribution is received, or upon an employee’s separation from service date). Post-separation/In-service benefits The employer may choose either post-separation only or in-service and post-separation benefits. Vesting A vesting schedule may be selected for post-separation benefits. If a vesting schedule is selected, forfeitures of unvested account balances must be considered (i.e., whether they offset future employer contributions or are reallocated to the remaining plan participants). Executive “premium-only” feature When HRA contributions discriminate in favor of key employees, benefits paid are limited to reimbursement for health and long-term care insurance premiums. Public employees are not exempt from the nondiscrimination rules applicable to HRAs which prohibit HRA contributions that are structured to favor highly compensated employees. If the HRA is discriminatory under these rules, benefits must be limited to post-retirement reimbursement for health and long-term care insurance premiums. Forfeitures The employer will decide how to use or reallocate forfeited funds in a participant account when a participant fails to meet vesting requirements, if any, or when a participant dies without a surviving spouse or dependents. Employer account option In addition to participant accounts, an employer may establish a separate employer account within the trust, allowing the employer to set aside funds for other obligations such as other post-employment benefits (OPEB) under GASB 45. Irrevocability Although the plan is structured so that vested account balances are irrevocable, the plan allows employers to specify the degree and terms of irrevocability for unvested member balances and balances within employer accounts. #40253