VEBA HRA - Settlements

Policy

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

Purpose

This policy is intended to provide a mechanism 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 employee settlement agreement.

To Whom Does This Policy Apply

This policy applies to all employees who receive a settlement for the purpose of reimbursement of allowable medical expenses.

References

VEBA Plan document

VEBA Membership Enrollment Form which includes a hold harmless agreement as required by RCW 28B.50.553(5)

Definitions

None

Procedure

TCC 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 whom a settlement agreement is offered.

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

TCC will make a one-time contribution into VEBA Plan in an amount equal to the settlement amount identified in the settlement agreement for those costs related specifically for the above described purpose.

The employee can use the funds for allowable medical reimbursement expenses.