A Post-Employment Health Plan is a tax-free, defined contribution health reimbursement arrangement. It allows for money to be set aside to pay for qualified health expenses and health insurance premiums after your separation. All contributions, accumulations and reimbursements are tax-exempt.
FAQ
What is the Post Employment Health Plan (PEHP)?
A PEHP account provides funds for reimbursements of eligible medical expenses at the separation of employment. Funds contributed to the account are not taxable to the employee and are invested within the account. Investment earnings are also not taxable to the employee. Upon separation of employment, funds taken out of the account for eligible medical expenses are also not taxable.
What happens to the funds within my PEHP account if I pass away?
If you pass away before you have used all of your PEHP funds, your PEHP account would pass to an eligible dependent as defined by the IRS (generally a dependent for whom you claim for tax filing purposes).
What happens to the funds if I pass away and do not have an eligible dependent as defined by the IRS?
For accounts in this type of scenario, the funds will be forfeited back to the plan.
When can I access the funds within the PEHP account?
To access funds within the PEHP account, you must separate service with City of Lincoln.
What are the eligible expenses for reimbursement through the PEHP account?
Each year the IRS publishes a list of eligible medical expenses called IRS Publication 213(d). Generally, eligible expenses for reimbursement include: copayments, deductibles, dental and vision expenses, Medicare Part B premiums, Medicare supplemental premiums and various other medical and health related items.
Who can I call if I have further questions about the PEHP account?
Employees can contact HRbenefits@lincoln.ne.gov for general questions. For questions specific to your account, please contact the Nationwide Retirement Solutions Center at 877-677-3678.