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RETAIN BOOKLET USING THE VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN RETAIN BOOKLET This is one of two booklets containing information to establish your VantageCare Retirement Health Savings (RHS) Plan with the ICMA Retirement Corporation. This booklet includes: ~odel Integral Part Trust Document ./. Private Letter Ruling ;. SePflplc Welfare Benefit Plan Please read the information and retain it for your files. MODEL INTEGRAL PART TRUST DOCUMENT You will need to execute a trust document; you may execute the model trust document in this retain booklet by inserting your information on pages 3, 4, 6, and 12. If you do not use the ICMA-RC model trust document, your individually designed document must be reviewed and approved by ICMA-RC prior to your joining the RHS program. This will ensure that ICMA-RC can administer all provisions of your plan. The ICMA-RC model trust document has been worded broadly to encompass any employer's RHS pro- gram. In most situations, as with your 457 or 401 plans, the Employer will act as Trustee. In this case, the terms Administrator and Trustee will refer to the Employer. Each reference to the Employer, Administra- tor, or Trustee refers to the Employer acting in the appropriate capacity. The Trust agreement is J]Q1 an agreement between you and ICMA-RC; it provides for the legal establishment of the RHS Trust and lays out the duties of the Employer and Trustee with respect to the trust. The agreement gives the Employer (acting as Administrator) the ability to designate another entity (Le. ICMA-RC) to perform administrative services for the RHS plan. The Administrative Services Agreement contained in the return booklet consti- tutes the contract between you and ICMA-RC for these services. The ICMA-RC model trust document may also be used in the situation where the Employer retains the services of an outside third-party trustee. In this case, the term Trustee refers to that third-party trustee. In no case may ICMA-RC be named as trustee for your RHS plan. PRIVATE LETTER RULING ICMA-RC has obtained a private letter ruling from the IRS approving one employer's RHS Plan trust. Your use of ICMA-RC's model trust document will provide you with comfort that the trust for your Plan is also within the IRS' requirements. (This is similar to the comfort provided when you use ICMA-RC's model 457 plan document.) Of course, you may want to talk to your legal counsel about whether or not you should obtain a private letter ruling on your own RHS trust document if you choose not to use the ICMA-RC model document. Note that the plan upon which the IRS private letter ruling was based did not include certain features that have subsequently been added to the RHS program. These features include . the irrevocable election to participate in the program, . the irrevocable election to contribute compensation or accrued leave*, . the irrevocable prospective election to contribute leave to be earned in the coming year*, and . voluntary employee after-tax contributions (Article 7.2 of the Trust). *These contribution types are treated as Employer contributions under Article 7.1 and 7.3 of the Trust.