Could you give me the basic low down of VEBA's. Like what one is, how you set one up? Maybe an e-mail address where I could get specifics so I don't take up too much of your time. Thanks.

A VEBA (voluntary employees' beneficiary association) is a tax exempt funding vehicle for certain welfare benefits (such as sickness, accident, life benefits) established under Section 501©(9) of the Code. There are numerous requirements that a VEBA must meet under the Code, including nondiscrimination requirements. I do not know of any particular websites that go into detail about VEBAs but you could search BenefitsLink for such information and/or give me your fax # and I can fax you some general information that I have in my files on VEBAs.

Try this URL http://www.worksite.net/index.htm

Worksite benefits are supposed to be very hot right now due to some pull back by employers on funding adequate benefits. Additional Life, disability, special situations (strokes etc) coverage is lacking at many companies and custodial care is not a covered benefit so who will pay?

Wondering if any others have witnessed the interest in this area or had requests for additional life insurance etc?
I also understand that commuting costs can also be tax advantaged to both employee and employer.
Hope this helps you. If this trend picks up steam, it could possibly signal a transition from employer sponsored benefits much the same way as 401(k) and IRAs have replaced the defined benefit plans that
were the norm until very recently.
Any thoughts?
Lydia Lerner

Lydia,
Here in New York the VEBA trend has been picked up by the largest teachers union. They have been negotiating contributions from the school district so that the union can arrange and control cetain welfare benefit plans. One school district even turned over the entire benefits program over to the union who then negotiates with insurance carriers or TPAs.

For a technical discussion on VEBA principals, check the BNA Tax Management Portfolio - VEBAS. Number 395