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?
At retirement, your compensable unused sick leave cash out, which would otherwise be paid to you as taxable wages, will be contributed if: (a) your collective bargaining agreement or employer policy, whichever is applicable, provides for such contributions; and (b) you enroll online or submit a signed VEBA MEP Enrollment form, which is contained in the VEBA MEP Participant Enrollment Kit, as a condition of participation.
Your sick leave cash out amount is based upon your salary at the time of retirement and is calculated at one-fourth of your accumulated unused sick leave balance.
How do I benefit from the VEBA Plan?
The VEBA MEP 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).