Common use of Establishment of VEBA Clause in Contracts

Establishment of VEBA. Effective July 1, 2004, the SWWC Service Cooperative shall make available a health insurance plan with a corresponding VEBA to all qualified bargaining unit members who exercise their option to enroll in the high deductible health insurance program offered in Section 5. Employer and employees assent to, and ratify, the appointment of the trustee and plan administrator for the VEBA Plan and Trust. It is intended that this arrangement constitute a Voluntary Employees’ Beneficiary Association under Section 501(c)(9) of the Internal Revenue Code. The employer will specify in the Adoption Agreement for the VEBA Plan document, before the first day of the Flexible Spending Account (Section 125) plan year that eligible health expenses will be paid from the FSA first, until an individual’s FSA account is exhausted, and from the VEBA Plan second. The VEBA plan year will begin and end on the same dates as the high deductible health insurance program offered in Section 5.