HRA VEBA

Public employees everywhere are struggling to cope with the soaring cost of health care, particularly after retiring. Many who are eligible to retire keep working because their retirement pensions and other taxable retiree income sources aren't enough. The average 60-year-old public employee and spouse retiring today may spend well over $300,000 of their own money on health care expenses and insurance premiums during retirement! Fortunately, the HRA VEBA plan can help.

HRA VEBA Overview

Defined by the IRS as a health reimbursement arrangement (HRA), HRA VEBA is a type of health plan that reimburses qualified health care costs and insurance premiums for you, your spouse and qualified dependents. The funding source for Pierce County's HRA VEBA program may be specific to the eligible voting groups, but generally has been 50 percent of the cash-out of sick leave upon retirement. Funds are deposited tax-free into participant accounts held by the nonprofit, tax-exempt HRA VEBA Trust, a voluntary employees' beneficiary association (VEBA) authorized under section 501(c)(9) of the Internal Revenue Code.

• You pay no tax on contributions, earnings, or withdrawals (claims).
• You can use your account anytime after it is opened.
• Your unused account balance carries over from year to year.
• You can invest your account among the available investment funds, including any one of four premixed portfolios.

The Voting Process

In 2009, Pierce County employees through their bargaining units or as part of a non-represented employee group began voting on whether to participate in the HRA VEBA program. Voting occurs every two years for the following two year participation period. The chart below shows participant groups and contribution parameters.

Top of Page

More Information

For questions about VEBA, your leave cash-out benefit or when and how to get your retirement process started:

Call Shelley Foutz, Benefits Specialist, at 253-798-7479 weekdays from 7:30 a.m. to 4:00 p.m. or e-mail anytime.

Top of Page