I work for a city government (Glendale, Arizona). We had a retiree health savings plan for 2 years in which any employee who wished to participate would specify how much they wanted to put into the account. It was not a mandatory program. At retirement they could use the money for medical insurance premiums,co-pays,prescriptions and other medical expenses. This year we were told that the IRS has stated that this type of program is illegal and that either everyone in the city had to participate or that no one could participate. I have contacted the IRS and the person I talked with was not aware of this requirement and suggested that I talk to my Human Resources department. I have contacted HR but have not heard back from them. Does any one out there have any info on this?
