Healthcare reimbursement plans are not insurance plans. They help cover your out-of-pocket medical expenses, including insurance premiums.

The Medical Expense Reimbursement Plan (MERP)

Medical Expense Reimbursement Plan (MERP) benefits help address one of the biggest hurdles in retirement: medical expenses. Local 27 helped bring this valuable benefit to its members. MERP is a tax-sheltered plan that can be used to pay health insurance premiums and other medical expenses in retirement. The City of Seattle contributes $75/month, and members contribute $100/month.

Your monthly MERP benefit is calculated as follows: ASU x Unit Multiplier (.41) + sick leave conversion = your monthly benefit amount.

To calculate the MERP benefit you will be entitled to in retirement, visit the SFFHCT Access Portal.

The Retirement Security Fund (RSF)

The Retirement Security Fund is a medical expense benefit for Local 27 members. Every eligible retiring member of Local 27 receives a monthly benefit to help pay for one of the most significant costs in retirement: medical expenses. The benefit lasts for seven years, and funds are deposited into your RSF account quarterly. You can use the funds in your RSF for insurance premium reimbursements and/or other qualified out-of-pocket medical expenses.

The RSF puts retirement timing in your hands and makes it more financially feasible by reducing your medical costs in retirement.

To be eligible for RSF benefits, you must be a member of the Local 27 bargaining unit who retired on or after January 1, 2018, and either have served the most recent 20 years in the Local 27 bargaining unit or have served your most recent 15 years of service in the bargaining unit represented by Local 27 and turned 50 at the time of your separation.

You don’t need to track your eligibility for the RSF. You will be notified by email and by print mail after you retire.

Learn more about the RSF

The Total Wellness Fund (TWF)

The Total Wellness Fund (TWF) is a new HealthCare Trust benefit that helps you cover your out-of-pocket healthcare costs. In January 2026, eligible active and retired members received $2,500, deposited into their new TWF VEBA account. These funds can be used to cover IRS Section 213 qualified out-of-pocket healthcare expenses incurred in 2025 and beyond.

Important Things to Know About the TWF:

• Your Funds Don’t Expire: Unlike some healthcare accounts that have “use it or lose it” rules, your TWF balance carries over from year to year. Any money you don’t spend remains in your account for future use.
• At Retirement: When you retire, your remaining TWF balance will automatically transfer to your Retiree HRA (also known as your RSF account) at Ameriflex, where you can continue using it until it’s depleted. As a retiree, you’re eligible to receive any future TWF benefit contributions.
• If You Leave Employment: If your employment ends before retirement, your VEBA balance will be transferred to a separate account you can use until the funds run out. Note that once your balance is transferred into this account, a $5.00 monthly administrative fee will be charged.
• Tax-Free Benefit: Remember, TWF dollars are not taxable as long as you use them for eligible Section 213 healthcare expenses.
• Future TWF Contributions: The 2026 contribution is set at $2,500 per eligible member. The continuation of the program in 2027 and beyond will depend on the Healthcare Trust’s financial performance. This program exists because of the collective effort of every member who prioritizes their health through annual medical evaluations and preventative care.

Learn more about the Total Wellness Fund