Voluntary Employees’ Beneficiary Associations (VEBAs) are a type of welfare benefit plan which have been in existence since 1928 and gained more attention in 1986, when Congress allowed multiple employers to form a VEBA.
VEBAs were created to fund non-retirement benefits, such as life insurance, sick pay, medical reimbursements, supplemental unemployment pay, severance pay, long-term insurance, educational benefits, and vacation pay.
Our attorneys assist private and public sector clients in complying with the various regulations governing VEBAs, including:
- Who can establish a VEBA including governmental entities, large business, unions, and associations
- Multiple employer VEBAs
- Internal Revenue Code Section 501(c)(9) compliance
- Tax deductible employer contributions
- Permissible benefits
- How VEBAs are different from qualified retirement plans and deferred compensation plans
- Complying with ERISA regulations
- Receiving favorable tax-exemption from the IRS
- Asset accumulation and protection
- Paying out benefits
- Plan termination
- and more