BPAS, a leading national provider of retirement plans, benefit plans, fund administration, and collective investment trusts, announced that it has teamed up with MOR Strategy Partners to deliver the Re$erveMOR benefits solution to public-sector employers and employees.
Re$erveMOR is a proprietary combination tax strategy, created by MOR Strategy Partners and financially managed by BPAS, that addresses the need for employees to optimize their pay through the use of multiple tax-advantaged employee benefits. It’s a convergence of healthcare, retirement, and wellness benefits designed to help public-sector employers and employees build health reserve dollars for retirement.
“The loss/sunset of retiree health coverage for employees in the public sector over the past decade has resulted in a significant economic challenge as they move from active employment,” said Nancy Melcher, Chief Engagement Officer at MOR Strategy Partners. “The ordinary individual who retires with pension, Social Security income, and some savings will be significantly under-resourced to deal with healthcare costs under the current industry benefit structure. We are fixing that with Re$erveMOR.”
Under the Re$erveMOR model, collectively bargained employees can elect a percentage of pay increases to fund their health reserve. They can also convert certain time-off benefits, like sick time, to health funds on a tax-free basis.
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“Funding this new reality will require different benefits and strategies,” added Melcher. “With employer budgets flat or declining, it will require new thinking and reallocation and a full benefit conversion strategy of existing programs. Looking at tax-advantaged plans in a cohesive and integrated fashion allows people to optimize their paychecks in accordance with the many tax opportunities available through their employer.”
“The opportunity to optimize multiple tax advantages requires an integrated strategy/model rather than a single benefit decision across multiple offerings,” said David Ritchie, SVP at BPAS VEBA & HRA/HSA Services. “The VEBA component is at the heart of the Re$erveMOR model as it provides the secured vaulting of these tax protected dollars for use in the short and long term health protection strategy.”