Originally Posted by
captjns
A voluntary employees' beneficiary association (VEBA) plan is a type of tax-exempt trust used by its members and eligible dependents to pay for eligible medical expenses. Pretty much a program of the past.
Also not a thing of the past at FedEx Express.
Take a look at the link in the post just 2 above yours. There's a thorough explanation with CBA references.
In short, our 2006 CBA established 2 VEBAs. The first was for a certain band of pilots based on age who would be eligible for normal retirement at Age 60. They received a sum of money that was
intended to offset the very large financial burden of health care insurance costs between retiring at Age 60 (and leaving regular FedEx health care insurance) and becoming Medicare eligible at Age 65. That VEBA is a thing of the past as far as current FedEx pilots are concerned.
The second VEBA was established to provide funds for POST-Medicare eligible health care costs. This VEBA was primed with deposits from The Company and is funded by a dollar amount contributed for each Credit Hour earned by every FedEx pilot, and every FedEx pilot who makes it to that age will be eligible for the benefit.
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