ING Launches the ING Health Reserve Account
ING today announced the launch of the ING Health Reserve Account, the first in a new line of products designed to address the needs of plan sponsors and participants wishing to fund their future health care expenses on a tax-favored basis
With a Health Reimbursement Arrangement (HRA), the employer funds the account from which the plan participants (spouse or qualified dependant) is reimbursed for qualified medical expenses defined by Internal Revenue Code such as co-pays, deductibles, vision care, prescriptions, long-term care insurance premiums, medical insurance and most dental expenses. These reimbursements are not taxed to the employee. The balance in these accounts can be carried over from year to year.
The ING Health Reserve Account product was designed to fulfill the new Governmental Accounting Standards Board (GASB) requirements on how Other Post Employment Benefits (OPEB) are funded. According to GASB requirements, retiree medical plans will need to disclose information about asset and liability levels and show historical contribution information (if the benefits are being pre-funded). Additionally, governmental employers must have actuarial valuations to determine the accounting cost amounts, and must keep a running tally of the extent to which these amounts are over or under funded.
“The ING Health Reserve Account will satisfy the needs of our government clients in response to their GASB obligations,” said Scott Baker, Vice President Alternative Markets, ING. “The product offers plan sponsors the flexibility to design a program that meets their needs and the needs of their employees.”
ING Health Reserve Account product features:
- Flexible and designed to accommodate either a Voluntary Employees’ Beneficiary Association (VEBA) or a 115 Municipal Integral Trust.
- Provides plan document services and trust agreement along with directed trust services through ING Trust USA .
- Can be designed to provide fully allocated recordkeeping required for a defined contribution HRA or an unallocated HRA that could be run like a defined benefit plan.
- Offers more than 60 investment options to employees designed to address a wide range of risk and time horizons.
- Allows the sponsor to utilize a Plan Administrator of their choice or ING will provide a plan administrator to process and adjudicate claims.
The GASB issued rules requiring government entities to account for the cost of their non-pension post-employment benefits begin in 2006 and will be phased in over 3 years.
Caroline Campbell, ING, 770-618-3801
ING Group is a global financial institution of Dutch origin offering banking, insurance and asset management to more than 60 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce of more than 112,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand.
In the U.S., the ING family of companies offers a comprehensive array of financial services to retail and institutional clients, which include life insurance, retirement plans, mutual funds, managed accounts, alternative investments, direct banking, institutional investment management, annuities, employee benefits, financial planning and reinsurance. ING holds top-tier rankings in key U.S. markets and serves more than 14 million customers across the nation. For more information, visit www.ing.com.