Time is Money
Minutes matter when they become hours because your retirement reaps the benefits. Your banked sick leave is eligible to be converted at 80 percent of your hourly rate into a Health Reimbursement Account for health care costs upon retirement.
The Sick Leave HRA gives you a strong incentive to bank your unused sick time and helps ensure that you will have sick time when you need it. You can use the Sick Leave HRA to help pay for eligible out-of-pocket medical, dental, vision and hearing care expenses on a tax-free basis.
Here's an example:
Let’s say a person makes $20 an hour. 80% of that is $16.
And let’s also say that person has 20 hours in their banked sick leave.
They should get $320 ($16 x 20 hours).
This benefit is separate from and in addition to the Retiree Medical HRA established as part of the retiree medical benefits package in the 2019 Coalition National Agreement and 2018 Alliance National Agreement.
How much will you be able to contribute to your Health Reimbursement Account? Enter your numbers to find out!