Finance Highlights 2008 0917 - Laserfiche WebLink

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employee group. Additionally, VEBA's by law, require that they are collectively bargained. As a result, employees have a mechanism in structuring a program that meets their needs. The final, and more significant factor, is that a VEBA Trust provides a more comprehensive approach to assisting with the greatest challenge for employers and employees, the rising cost of health care. A VEBA Trust is permitted to receive employer and employee contributions, the benefit being the opportunity to grow significantly greater assets for health care expenses in a shorter period of time. By establishing the VEBA Trust, employees will be able to make health care choices that address their specific needs and have more money available for health care expenses due to the tax savings realized through the program. We are aware of a number of public agencies who have implemented VEBA Trusts for their employees. The proposed VEBA Trust was developed as a multi -agency Trust in order that other public agencies may provide similar benefits to their employees. The benefit of joining this particular VEBA Trust is that it was developed by a public agency with our issues in mind. This Trust is also governed by a committee of Trustees formed from the list of participating agencies. Should the City of San Leandro choose to participate in the California Government VEBA, we would hold representation on the Board of Trustees as well. The costs anticipated with the implementation of this program come from two sources, Plan Administration (provided by Administration Resources Corporation out of Minnesota) and Trust Administration which is provided through Brentwood LLC. It is also anticipated that investment fees may be a cost as well. However, several options exist for investment one of which is no -cost guaranteed fee program through MetLife. Other investment options are available and are tailored to the employer's requirements.