VEBA Sick Leave Transfer

Policy

It is the policy of the College to  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: 

1. 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
2. The employee is a SBRP participant in receipt of a SBRP group retirement plan and in receipt of an allowance or other benefit resulting from service rendered to the College AND 
3. The employee is:
   1. At least 55 years of age or
   2. Has at least 10 years of Washington State service or
   3. 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. 

Purpose

The purpose of this policy is to 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 eligible faculty and exempt employees of the College 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 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.

References

VEBA Plan Document- www.veba.org

State Board Retirement Plan (SBRP) Documents- www.sbctc.edu

Department of Retirement Systems (DRS) TRS and PERS Retirement Requirements-  www.drs.wa.gov

Definitions

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

Permanently Disabled: Employees diagnosed as permanently disabled by a licensed health care provider which prevents the employee to continue employment with the College.

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.  Gallagher Benefits Services is the administrator of the VEBA trust fund for Tacoma Community College eligible employees).