VEBA Plan FAQ’ s
These FAQs provide answers regarding Unified Fire Authority’ s VEBA Plan.
Q: What is a VEBA plan, and what can it be used for? A Voluntary Employees’ Beneficiary Association( VEBA) plan is a tax-exempt trust established to reimburse eligible medical expenses for employees and their dependents following retirement or separation from UFA. Eligible expenses include, but are not limited to, health insurance premiums, Medicare Part B and supplemental plans, and out-ofpocket costs for medical, dental, prescription, and vision care. Cosmetic procedures are excluded. A full definition of qualifying medical expenses can be found under IRS Code Section 213( d), Eligible Medical Expenses..
The VEBA plan is funded through contributions made by UFA on behalf of each eligible employee, as outlined below. For additional information, please visit IRS VEBA – 501( c)( 9).
According to the 2024 Utah Retirement Systems( URS) Annual Report, the average retirement age for firefighters is 55.6, while civilians retire at an average age of 64.1. The VEBA plan serves as a valuable resource to help employees prepare for healthcare costs in retirement. Industry financial planners generally recommend that an individual retiring at age 65 have at least $ 150,000 saved for medical expenses, while a couple should anticipate needing approximately $ 300,000.
VEBA Video Link VEBA EE Guide Link
VEBA Fact Sheet Separated Employee Link Q: What if an employee has Tricare, Medicare, or other coverage and won’ t have medical expenses after separation or retirement?
When planning for retirement healthcare expenses, it is important to carefully consider pharmacy costs, as this is often where retirees realize the greatest benefit from their VEBA funds.
It is also essential to remember that Tricare and Medicare are not entirely cost-free. The Tricare website outlines applicable copayments and other out-of-pocket costs. Additionally, Medicare Part B premiums are not covered by Tricare.
For retirees on Tricare who begin collecting Social Security, the Medicare Part B premium is automatically deducted from their monthly Social Security benefit( if eligible). However, if a retiree chooses to delay collecting Social Security until full retirement age or age 70, they
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