will instead be billed quarterly for their Medicare Part B premiums. In such cases, VEBA funds can be used to cover these expenses.
Q: How are funds contributed to VEBA? UFA has four methods by which contributions can be made to the VEBA account:
1. VEBA Contribution Per Pay Period
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As of January 1, 2022, UFA will contribute 2 % each pay period of base pay into full-time employee’ s VEBA accounts.
2. Retirement Payout
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At the employee’ s request, UFA may deposit all or a portion of the cash value of the vacation / sick leave payment into the employee’ s VEBA account in accordance with the plan document in effect on the date of retirement.
3. Separation Payout
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At the employee’ s request, UFA may deposit all or a portion of the cash value of the vacation leave payment into the employee’ s VEBA account in accordance with the plan document in effect on the date of retirement.
4. Sick Leave Buyback Program
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Employees will continue to accrue sick leave once they reach their cap of 640 hours, for eligible 8-hour( day shift) non-firefighter employees or 960 hours for firefighter employees. Each year, any hours the employee has accrued above the established caps of 640 or 960 hours, as of January 1 st, will be“ purchased” by UFA at a rate established by the UFA Board of Directors by resolution. The current rate is 60 % of the employee’ s current rate of pay. The amount will be calculated by the March 25 th payroll and deposited into the employee’ s VEBA account, generally within two weeks. To take advantage of the time value of money, it is to the employee’ s advantage to save sick leave and reach the“ buyback” cap as early in one’ s career as possible.
Q: Can an employee contribute to their VEBA Account? No. Under IRS regulations, employees are not allowed to make direct contributions.
Q: How do employees know if they have funds in their VEBA account, and how can they review their statement?
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