Post-Employment VEBA

What is a VEBA? VEBA: Voluntary Employee’s Beneficiary Association Health Reimbursement Arrangement (HRA) Tax-Free Account Consult with tax preparer to discuss personal tax impact Funded with Employer dollars only Reimbursed from account as claims are submitted for eligible expenses Funds held in 501 (c)(9) external trust No “Use it or lose it”

Two Types of VEBAs Integrated VEBA Post-Employment VEBA Requires enrollment in a Three for Free Medical Plan Contribution amount defined by contract Access to dollars while in active employment Only for family members covered on your medical plan (7/1/17) Post-Employment VEBA No medical plan enrollment needed Retirement Severance, MOU contributions, and elected Q-Comp payments would be deposited to this type of account May receive contributions during active employment Access to dollars only after employment has ended Spouse and eligible dependent expenses allowed

Post-Employment VEBA Medical Expenses Insurance Premiums Section 213(d) – Medical Expense list Includes: Co-pays, Medical deductible and co-insurance amounts, Out-of-pocket dental expenses, Vision expenses (glasses & contacts) Insurance Premiums Medical and Dental Insurance Premiums paid with Post-tax dollars (includes Medicare Supplemental Plan Premiums) Excludes any plan purchased via the exchange (MN Sure) due to tax credit provided for these plans Long Term Care Insurance - Subject to IRS maximums Debit Card is not available

Expenses must be submitted within 365 days from the date of service Post-Employment VEBA Expenses must be incurred after your effective date under the VEBA plan Effective date = Termination Date Expenses must be submitted within 365 days from the date of service

Claim Submission Corporate Health Systems (CHS) aka OneDigital Online Mobile App Fax Mail Balance information always available on the CHS/OneDigital website

Additional Information Option to Invest VEBA Funds above $2,500 14 fund choices ranging from Low to High Risk No Investment Fee Administration fee - $6.00/month Billed directly to account Billed on a quarterly basis by end of 1st month following end of quarter Upon Death of Participant Transference to eligible party 1. Spouse 2. Eligible Dependent (Child under 27 through end of tax year) 3. Forfeiture: Allotted per capita to Participants within same Bargaining Group

Questions? Eden Prairie Schools – Staff Portal Benefits > VEBA Eden Prairie Schools – Human Resources Katy Stromberg Phone: 952-975-7035 Email: kstromberg@edenpr.org Corporate Health Systems (CHS)/OneDigital Reimbursement Team Phone: 952-939-0911 (Option 1) Email: Mn-reimbursement@onedigital.com