The University of Vermont (UVM) established the Retiree Health Savings Plan (RHSP) to help individuals pay for qualified healthcare expenses during retirement. UVM will make regular tax free contributions to the plan for benefits-eligible faculty and staff hired on or after January 1, 2012. For these individuals, the plan is considered a non-contributory plan (meaning that it does not require contributions from the employee in order to receive UVM contributions). Although the plan is intended for those hired on or after January 1, 2012, all active benefits-eligible faculty and staff regardless of hire date may establish an RHSP and make regular, voluntary after-tax contributions.
Earnings that accumulate in a Retiree Health Savings Plan grow tax free. When you access your RHSP to pay for eligible healthcare expenses in retirement, those reimbursements are also tax free. As a result, this plan has the benefit of helping you to pay for healthcare expenses in retirement in a tax-advantaged way.
For eligible faculty and staff hired after January 1, 2012, UVM contributions are automatic. Those hired on or after January 1, 2012 who wish to make personal contributions, and those hired before January 1, 2012 who wish to establish a Retiree Health Savings Plan, must complete the RHSP Election Form.