Tacoma Community College will consider an employee who is a SBRP participant as “retired” for the purpose of sick leave buyout conversion to a VEBA medical expense plan eligible under the following conditions:
- The employee certifies that they are permanently separating from Washington State employment in all agencies or institutions where the employee would be eligible to accrue sick leave and participate in the sick leave buyout on conversion to a VEBA medical expense account plan AND
- The employee is a SBRP participant in receipt in a SBRP group retirement plan and in receipt of an allowance or other benefit resulting from service rendered to the college AND
- The employee is:
a. Age 55 or
b. Has 10 years of Washington State service or
c. Is permanently disabled
SBRP eligible employees who elected to join a Department of Retirement Systems (DRS)PERS or TRS plan must refer to the DRS rules for eligibility to retire from the DRS plans.
The Human Resources department is responsible for the administration of the sick leave buyout conversion to a VEBA medical expense plan at retirement for eligible employees.
This policy and procedure provide guidance for defining and applying the sick leave buyout conversion to a VEBA medical expense plan at retirement.
To Whom Does This Policy Apply
All employees of the College who are 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 who meet the criteria for retirement from the College and the respective retirement plan who are eligible to participate in the VEBA medical trust transfer program.
VEBA Plan Document
State Board Retirement Plan (SBRP) Documents located at www.sbctc.edu
Department of Retirement Systems (DRS) TRS and PERS Retirement Requirements located at www.drs.wa.gov
VEBA plan website: www.veba.org
Permanently Disabled – Employees diagnosed as permanently disabled by a licensed health care provider which prevents the employee to continue employment with the College. Any second or third opinions – Tacoma Community College reserves the option of requiring the employee to obtain a second opinion from an independent medical provider selected by the College at the expense of the College. If the two opinions conflict, the conflict may be resolved by a third opinion by a provider agreed to by Tacoma Community College and the employee and which shall be considered final and binding. Tacoma Community College will pay for the third opinion.
State Board Retirement Plan (SBRP) – any group retirement plan offered to eligible employees per the SBRP plan documents.
VEBA – Voluntary Employees’ Benefit Association (the tax-exempt trustee authorized by the Internal Revenue code. Meritain Health is the administrator of the VEBA trust fund for Tacoma Community College eligible employees).
The SBRP participant or the SBRP eligibile employee who participates in a Department of Retirement PERS or TRS plan will:
- Notify the Human Resources department of the intent to retire.
- Submit a signed statement addressed to the Human Resources administrator certifies that the participant is permanently separating from Washington State employment in all agencies or institutions where the employee would be eligible to accrue sick leave and participate in the sick leave buyout conversion to a VEBA medical expense plan and certify that the eligibility requirements have been satisfied.
- Provide the Human Resources department with a communication from the SBRP plan administrator or confirmation from the Department of Retirement Systems for eligible PERS and TRS employees that states that the employee is a SBRP participant in receipt of an allowance or other benefit resulting from service rendered to the College or application has been made for retirement for those eligible employees who participate in a DRS plan.
- Complete a VEBA Enrollment Form available onlineat the veba.org website.
- Return the completed VEBA Enrollment Form to the Human Resources department.
- The Human Resources department will submit the form for enrollment to Meritain Health and can then proceed with the one quarter of the available sick leave funds at retirement for deposit in to the VEBA trust on behalf of the participant. No funds can be deposited without completion of a valid Enrollment Form.
- The VEBA Plan administrator will mail the participant specific plan information and instructions to the participant’s permanent address upon receipt of the VEBA Enrollment Form.
- The retiree is responsible for contact with Meritain Health including verification of posting of funds and notifying Meritain Health of any change of address.