VEBA and section 115
governmental trusts

OVERVIEW

Emeriti’s retirement health savings program utilizes a VEBA or Section 115 governmental trust

The trusts utilize a flat-dollar contribution approach, and provide triple tax-free savings and payment for qualified medical expenses in retirement.
HOW IT WORKS

How the trusts work

Voluntary Employees Beneficiary Association trusts (VEBA) and section 115 governmental trusts are tax-free post-retirement medical expense accounts used by retirees and their eligible dependents to pay for any eligible medical expenses.
  • A Voluntary Employees’ Beneficiary Association (VEBA) is a tax-exempt employee trust for private sector employees that can be used by retirees and their eligible dependents to pay for qualified medical expenses.
    • Employers contribute tax-free funds on behalf of benefits eligible employees
    • Employees may make after-tax contributions, if option to do so is elected by employer
    • Investment earnings are tax-free
    • Disbursement of funds for qualified medical expenses is tax-free
    • Assets in the trust can be forfeited by the employer, and must remain in the plan
  • IRC 115 integral governmental trusts are tax-exempt accumulation vehicles for public sector employees that can be used by retirees and their eligible dependents to pay for qualified medical expenses.
    • Employers contribute tax-free funds on behalf of benefits eligible employees
    • Employees may make after-tax contributions, if option to do so is elected by employer
    • Investment earnings are tax-free
    • Disbursement of funds for qualified medical expenses is tax-free
    • Assets in the trust can be forfeited by the employer, and must remain in the plan
HOW IT WORKS

How funding and investments work

An Emeriti Plan generally includes a set of TIAA-CREF target date or lifecycle mutual funds as the core menu. Employees are automatically enrolled into a target date fund based on their current age. Plan sponsors may choose to include additional mutual funds at their discretion.*
GET STARTED

Start the conversation

We are ready to help you discover how Emeriti's Retirement Healthcare Savings Program can work at your organization.

Schedule a call

Please tell us when to call you.

Email us

Let us know how we can help.