MSA/VEBA Sample Clauses
The MSA/VEBA clause establishes the use of a Medical Savings Account (MSA) or a Voluntary Employees' Beneficiary Association (VEBA) as part of an employee benefits plan. This clause outlines how contributions are made to these accounts, who is eligible to participate, and the types of medical expenses that can be reimbursed. By specifying the structure and administration of these benefit accounts, the clause ensures compliance with relevant tax laws and provides employees with a tax-advantaged way to pay for qualified medical expenses, thereby enhancing the overall benefits package and addressing healthcare cost management for both employer and employees.
MSA/VEBA. ANNUAL VOTE. Employees shall vote annually to determine the apportionment of hours exchange into HRA VEBA. The vote shall occur no later than December 15th of the current year to determine the apportionment for the succeeding calendar year. The vote results shall be communicated in writing to the employer no later than December 23rd. All changes resulting from the vote shall be binding upon the employer and employees for the duration of the calendar year. Upon separation from employment, any unused sick leave shall be forfeited and will not be paid as separation pay, except in the case of death or retirement. Upon retirement, twenty-five percent (25%) of the employee's accumulated sick leave shall be paid to the employee’s MSA VEBA or as pay on his/her final check, as determined by annual vote and notice. Upon death, twenty-five percent (25%) of the employee’s accumulated sick leave shall be paid to the employee’s estate. All payments of accumulated sick leave are based on the employee’s base hourly rate at the time of retirement or death.
MSA/VEBA. Each employee shall contribute the following on a pre-tax basis to the group MSA VEBA program: A. January 1, 2012 – 1.5%