VEBA HRA - Settlements

Policy

It is the policy of the College that personnel settlement agreements for eligible faculty and exempt employees may include an employer contribution into the VEBA Health Reimbursement Plan for Public Employees of the State of Washington.

The College participates in the VEBA Plan as administered by the VEBA Trust for Public Employees in the State of Washington (Trust) as the plan into which the employer-only contributions will be deposited.

Participation is determined by the College and is not an entitlement or a right automatically available to any person to whom a settlement agreement is offered.

Human Resources is responsible for implementing the enrollment procedures necessary for administering the plan.

Purpose

The purpose of this policy is to allow the College to make an employer contribution into the VEBA Health Reimbursement Plan for Public Employees of the State of Washington (VEBA Plan) when such contribution is part of an eligible employee’s settlement agreement. 

To Whom Does This Policy Apply

This policy applies to eligible faculty and exempt employees  who are participants in the State Board Retirement Plan (SBRP) or eligible for the SBRP and participants in Department of Retirement System PERS or TRS plans and who receive a settlement agreement that includes reimbursement of allowable medical expenses.

References

VEBA Plan FAQ  

Definitions

Department of Retirement Systems (DRS), Public Employees Retirement System (PERS) or Teachers Retirement System (TRS): The group retirement plans provided and administered by the state’s Department of Retirement Systems. 

Health Reimbursement Arrangement (HRA): An account-based health plan. You can use your HRA funds to reimburse out-of-pocket expenses and premiums.  For the purpose of this policy, the term Health Reimbursement Plan is an HRA.

VEBA: Voluntary Employees’ Benefit Association, the tax-exempt trustee authorized by the Internal Revenue code.  Gallagher Benefits Services is the administrator of the VEBA trust fund for Tacoma Community College eligible employees. The term “VEBA” means a benefit plan that reimburses medical care expenses. This is because VEBA trusts are often used to hold plan assets (participant account balances). The technical term, as defined by the IRS, is “HRA.”