A Post Employment Health Plan (VEBA) is a 501(c)9 plan under Internal Revenue Code that provides each eligible member with an individual account to pay health/dental insurance premiums and/or unreimbursed medical expenses after separation of employment with the City of Boise. These accounts are funded by the employer and it is the intention of the City to provide a target benefit. Employees who are eligible for this benefit include all Police contract members who are regularly scheduled to work twenty (20) hours or more per week.
How Is VEBA Funded?
Based on an eligible member's status on the last day of the last pay period in December, an employer contribution is based upon the following funding provisions:
- Annually, a percentage of excess sick leave, per the current contract or MOA, is converted at the employee's current base rate into the the Post Employment Health Plan (VEBA) account.
- An employee whose VEBA balance at retirement is below the Minimum Funding Standard amount shall transfer funds from their accrued sick leave balance, per the current contract or MOA, followed by accrued compensatory leave and accrued vacation leave in that order to meet the minimum funding standard.
Minimum Funding Standards
The target benefit, or Minimum Funding Standard (MFS), represents the amount of funds necessary to pay for fifteen (15) years of single person premiums. See current contract or MOA for amounts. The assumptions used to calculate the target benefit are as follows:
- Fifteen (15) years of single person premiums.
- Medical premium increases estimated at 6.5% per year.
- VEBA investment earnings estimated at 8% per year.
What Happens When I Leave The Organization?
Whether you are leaving the organization through resignation, termination, layoff, or retirement you are able to access the funds in your VEBA account. In order to request reimbursement for health/dental insurance premiums and/or unreimbursed medical expenses after separation of employment with the City of Boise, register or log onto www.hraveba.org, email firstname.lastname@example.org or call (208) 972-8090 to obtain the appropriate form.