The New Retiree Health VEBAs

NYU Review of Employee Benefits and Executive Compensation, Chapter 7, 2008

22 Pages Posted: 26 Feb 2009

See all articles by Kathryn L. Moore

Kathryn L. Moore

University of Kentucky College of Law

Date Written: February 19, 2009

Abstract

This article examines the recent trend of transferring employer retiree health care liabilities to VEBAs. After providing a brief history of retiree health benefits and an overview of the basic tax rules governing VEBAs, the article explains the difference between traditional VEBAs and the new retiree health VEBAs. The article then discusses the advantages and limitations of the new VEBAs. The article concludes that the new VEBAs may be an appropriate vehicle for pre-funding retiree health benefits for some employers, particularly financially distressed employers with significant retiree health liabilities and large union forces, but they are not a panacea for the country's health care financing woes.

Keywords: retiree health, retiree health financing

JEL Classification: I10, J32, K32

Suggested Citation

Moore, Kathryn L., The New Retiree Health VEBAs (February 19, 2009). NYU Review of Employee Benefits and Executive Compensation, Chapter 7, 2008, Available at SSRN: https://ssrn.com/abstract=1346485

Kathryn L. Moore (Contact Author)

University of Kentucky College of Law ( email )

620 S. Limestone Street
Lexington, KY 40506-0048
United States
859-257-7637 (Phone)
859-323-1061 (Fax)

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