EWU 409-02: Voluntary Employee Benefit Association (VEBA)

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Personnel – Benefits and Retirement

Purpose:  This policy describes the Voluntary Employee Benefit Association (VEBA) Reimbursement Plan as available to classified and exempt employees of Eastern Washington University.

History:  This policy supersedes UGS Policy 610-040-250, dated December, 1998.

Applicability:  This policy applies to all classified and exempt employees of Eastern Washington University.

1 – Policy

Pursuant to RCW 41.04.340 (7-9), Eastern Washington University adopted the VEBA Plan.

VEBA is a post-retirement medical reimbursement plan available to exempt and classified employees with compensable sick leave. VEBA enables Eastern Washington University to deposit funds that would otherwise be paid to a retiring employee for unused sick leave as defined in RCW 41.04.340(3) into a tax-free VEBA Trust account on the employee’s behalf.

The Internal Revenue Code permits the tax-free payment to a medical expense plan for payment of subsequent medical insurance premiums and other qualified medical, dental and vision care expenses. The VEBA plan, effective as of January 1, 1999, is administered by the Benefits Office.