Download PDF Establish a core benefits package paid for by the H&W A realistic estimate of expected hours (typically less than 40 hours/week) Variations of expected H&W based on different H&W rates ($4.54, $4.60, $4.80, etc.) Benefits package to include: At least employee-only medical plan (meeting ACA MEC requirements) Administrative expenses allowable towards H&W obligation Combination of Basic Life, Basic AD&D, EAP, STD, LTD (as much as possible) ‘Cushion’ for employees to gradually build PRA balance to the threshold point Fixed payroll deductions for any coverages that exceed the expected fringe PRA threshold set at 3 months of benefit expenses Employer determines PRA threshold PRA threshold can vary by contract PRAs balances up to the threshold are retained to pay for benefits during periods when employees do not work expected hours and thus do not generate the expected H&W. PRA balances above the threshold are allocated to an employer-designated surplus account (typically retirement plan) PRA Contribution Adjustments (PRACA) PRACA are employer contributions to the PRA, above the H&W requirement, to keep the PRA at a $0 balance and ensure the long-term financial viability of the trust PRACA contributions are “paid back” to the employer in future periods when the employee accumulates a PRA balance (i.e. when PRA contributions exceed deductions) PRACA balances are tracked per employee and can be deducted from employee’s paychecks with employee approval or a written policy.