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Voluntary Employees Beneficiary Association

   Also found in: Wikipedia 0.01 sec.
Voluntary Employees Beneficiary Association
Also called a VEBA. A non-profit organization in the United States that administers employee benefits. Under the subsection, profits from a VEBA are tax free, provided employees are not required to join, members control the organization, earnings do not benefit any one member or group of members and the VEBA does not substantially engage in any activities other than administration of benefits.


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Under terms of the agreement, AK Steel will transfer all of its health care (OPEB) obligations for the covered retirees to a Voluntary Employees Beneficiary Association (VEBA) trust, which will be managed solely by the retirees' designees, and will be utilized to fund the retirees' covered benefits.
Although they have been in existence since 1928, Voluntary Employees Beneficiary Associations (VEBA) are not well known or understood.
The VEBA voluntary Employees Beneficiary Associations (VEBAs) are tax-exempt organizations that are described in Section 501(c)(9) of the Internal Revenue Code.
 
 
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