Why HRA VEBA?
Public employees everywhere are struggling to cope with the soaring cost of health care, particularly after retiring. Many who are eligible to retire keep working because their retirement pensions and other taxable retiree income sources aren’t enough. The average 60-year-old public employee and spouse retiring today may spend well more than $300,000 of their own money on health care expenses and insurance premiums during retirement! Fortunately, the HRA VEBA plan can help. HRA VEBA overview Defined by the IRS as a health reimbursement arrangement (HRA), HRA VEBA is a type of health plan that reimburses qualified health care costs and insurance premiums for you, your spouse and qualified dependents. The funding source for King County’s HRA VEBA program is leave cash-out at the time of retirement from PERS, LEOFF 2, PSERS and the Seattle City Employees’ Retirement System. Funds are deposited tax-free into participant accounts held by the nonprofit, tax-exempt HRA VEBA Trust, a voluntary
