VEBA Definition Clause Samples
The VEBA Definition clause establishes what constitutes a Voluntary Employees' Beneficiary Association (VEBA) within the context of the agreement. It typically outlines the specific criteria or characteristics that an organization or trust must meet to be recognized as a VEBA, such as providing certain employee benefits and complying with relevant tax regulations. By clearly defining VEBA, this clause ensures that all parties understand which entities or arrangements are covered, thereby preventing ambiguity and ensuring compliance with applicable laws.
VEBA Definition. The employees of BUD are eligible to participate in the VEBA plan. The plan is officially titled “Voluntary Employees’ Medical Benefits Association - Medical Expense Plan” or “VEBA.” The VEBA Plan is a post- retirement medical expense reimbursement account. VEBA enables the employer to deposit funds equivalent to the cash-out of compensable unused sick leave at retirement in a tax-free VEBA trust account. The account can be used for the reimbursement of all VEBA approved medical expenses, such as reimbursement for prescription drugs, payment of insurance premiums, and payment of insurance deductibles and co-pays.