VEBA Plan Overview
A VEBA or Voluntary Employees’ Beneficiary Association is a tax-exempt trust instrument authorized by Internal Revenue Code through which eligible healthcare benefits can be reimbursed. The City’s VEBA plans have been set up to reimburse eligible medical expenses you may experience in retirement.
Contributions to your VEBA account
While employed with the City of San José, eligible employees will make mandatory ongoing contributions into the VEBA on a pre-tax basis. Reimbursements for eligible medical expenses after retirement are also tax-free.
Contribution rates will vary based on the employee’s bargaining unit and retirement tier. Please refer to the City of San José VEBA Website for information regarding the specific contribution rates.
How your VEBA account works
The VEBA account reimburses eligible medical expenses for individuals who have either 1) terminated City service and have reached the required retirement age based on their retirement system or 2) retired for service, service-connected disability, or nonservice connected disability. If an employee becomes a member of a reciprocal retirement system, the VEBA funds can be accessed after retirement from that system.
The VEBA reimburses qualified out-of-pocket healthcare costs including but not limited to health, dental, and vision insurance premiums, copays and deductibles, prescription costs, Medicare Parts B & D premiums, Medicare supplement insurance premiums, and qualified Long-Term Care insurance premiums incurred by employees, their spouses and qualifying dependents. Genesis, a TASC Division, the VEBA’s third party administrator, will provide participants with a more comprehensive list of eligible expenses. As a defined contribution plan, the only funds available in the VEBA are the contributions made while employed and any investment returns on those funds. Once the funds in the VEBA are exhausted, the employee will no longer be able to reimburse their eligible healthcare expenses.
For details on the reimbursement of specific out-of-pocket healthcare costs, please review the following document regarding qualified expenses and premiums.
You will receive claim filing instructions when your account becomes eligible to make reimbursements.
Management of your account
One of the benefits of a VEBA plan is your ability to manage your account throughout the course of your employment with the City and once you separate from service. Management of your account allows you to determine your investment allocations and to ensure that your eligible dependent information is up to date.
Prior to your separation from service with the City, you can utilize TASC’s Investment Tool Kit to monitor your account and to allocate your assets across the available investment options within the plan. To assist employees in their overall asset allocations, the City of San José has elected to mirror the investment options of the City of San José’s Deferred Compensation Plan. For details on the investment options available to you, please refer to the Investment Page of the site.
As required by law, all of the assets in your account are held in trust by the plan “trustee.” Contributions to your account will be held in the plan’s stability of principal investment option until you establish investment allocations for your account.
Accessing your VEBA Account
You may access your account by going to http://voyacdn.com/hra/genesis. From this site, you will have full access to your account and once separated from service you will be able to use the balance in your account to reimburse yourself for certain qualified health care expenses.
Your account will allow you to make investment allocations, change your username, generate statements on demand, etc. Additionally, the Genesis Investment Tool Kit contains links to information you may find helpful when making investment choices including: fund fact sheets, fund performance history, and general market information.
Once you separate from employment
In addition to managing your investment options, your online account offers a variety of tools which allow you to manage your account once you separate from service from the City of San José. In particular, your account provides you with the ability to file claims, upload receipts, view a list of eligible expenses, generate statements on demand, print forms, view your account balance information, view your claims history, view payment history, and much more. Specifically, you may use the balance in your account to reimburse yourself for certain qualified health care expenses that you (and your spouse or dependents, if applicable) have incurred as of the effective date you became an eligible participant in the plan. You will receive a separate Welcome Letter with claim filing instructions and eligible expense information once you become claims eligible.
The City’s VEBA plan is provided by Voya Financial®. Genesis Employee Benefits, a TASC Division, provides third party administration services. Voya provides the investment options and Genesis provides plan administration, online participant tools, and claims services for the City’s VEBA plans.
Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) Voya Retirement Insurance and Annuity Company, One Orange Way, Windsor, CT 06095-4774. Securities are distributed by Voya Financial Partners LLC (member SIPC). All companies are members of the Voya® family of companies. Securities may also be distributed through other broker-dealers with which Voya has selling agreements. Insurance obligations are the responsibility of each individual company. Product and services may not be available in all states.