VEBA and section 115
governmental trusts


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

The trusts utilize a flat-dollar contribution approach, and provide for triple tax-free savings and payment of qualified medical expenses in retirement.
How it works

How the trusts work

Voluntary Employees Beneficiary Association trusts (VEBA) are tax-exempt employee trusts for private sector employees. IRC 115 integral governmental trusts are tax-exempt accumulation vehicles for public sector employees. Both trusts are tax-free post-retirement medical expense accounts used by retirees and their eligible dependents to pay for any eligible medical expenses.

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.