Funding and Benefits of Participation
Below is a list of frequently asked questions (FAQs) regarding common funding sources and benefits. If you cannot find what you are looking for, check one of the other FAQ categories: General Information; Using Your Account; or Investment Options.
How do I get money into my account?
In most cases, your employer contributes funds that would otherwise have been paid to you as taxable income. The most common funding source is unused sick leave cash out funds at retirement.
Depending on your employer, other funding sources may be available, such as annual sick leave cash out; vacation, personal, other leave cash outs; mandatory employee contributions (no individual elections permitted); and part or all of a future pay raise or cost-of-living allowance (COLA).
You should check with your employer to confirm available funding source(s) and eligibility requirements. Contact Gallagher VEBA to learn more about what funding sources may be adopted by your employee group.
How do I benefit from the VEBA Plan?
The VEBA Plan saves you money. You pay zero tax on contributions from your employer, earnings, and withdrawals (claims). In other words, the money goes in tax-free, is invested tax-free, and comes out tax-free. You may save up to $300 or more in taxes for every $1,000 contributed by your employer (tax savings are approximate and vary by individual).