Common use of Voluntary Employees’ Beneficiary Association (VEBA Clause in Contracts

Voluntary Employees’ Beneficiary Association (VEBA. 44.1 The Employer will provide to eligible employees covered by this Agreement a medical expense plan that provides for reimbursement of medical expenses. Instead of cash out of sick leave at retirement, the Employer may deposit equivalent funds in a medical expense plan for eligible employees, as authorized by RCW 41.04.340. The medical expense plan must meet the requirements of the Internal Revenue Code. 44.2 As a condition of participation, the medical expense plan provided will require that each covered eligible employee sign an agreement with the Employer. The agreement will include the following provisions. A. A provision to hold the Employer harmless should the United States government find that the Employer or the employee is indebted to the United States as a result of: 1. The employee not paying income taxes due on the equivalent funds placed into the plan; or 2. The Employer not withholding or deducting a tax, assessment, or other payment on funds placed into the plan as required by federal law. B. A provision to require each covered eligible employee to forfeit remuneration for accrued sick leave at retirement if the employee is covered by a medical expense plan and the employee refuses to sign the required agreement.

Voluntary Employees’ Beneficiary Association (VEBA. 44.1 43.1 The Employer will provide to eligible employees covered by this Agreement a medical expense plan that provides for reimbursement of medical expenses. Instead of cash out of sick leave at retirement, the Employer may deposit equivalent funds in a medical expense plan for eligible employees, as authorized by RCW 41.04.340. The medical expense plan must meet the requirements of the Internal Revenue Code. 44.2 43.2 As a condition of participation, the medical expense plan provided will require that each covered eligible employee sign an agreement with the Employer. The agreement will include the following provisions. A. A provision to hold the Employer harmless should the United States government find that the Employer or the employee is indebted to the United States as a result of: 1. The employee not paying income taxes due on the equivalent funds placed into the plan; or 2. The Employer not withholding or deducting a tax, assessment, or other payment on funds placed into the plan as required by federal law. B. A provision to require each covered eligible employee to forfeit remuneration for accrued sick leave at retirement if the employee is covered by a medical expense plan and the employee refuses to sign the required agreement.