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 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 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.
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