Neither the former employer nor the VEBA
was required to reimburse the subsidiary for its obligations under the reinsurance contract.
Chrysler chairman and CEO, Sergio Marchionne, said, 'This transaction brings to a successful and earlier than anticipated conclusion, the process that led the US and Canadian governments, the UAW and the VEBA
, together with Fiat, to take on the task of re-establishing Chrysler as a viable automotive enterprise.
With the full early repayment of government loans in 2011, the acquisition from the VEBA
of their Chrysler equity stake by Fiat in January of this year, and the full monetization of the VEBA
note some nine years before the expiry of its term, Fiat and Chrysler together have satisfied all the monetary commitments that were made to Chrysler back in 2009.
Fiat is expected to continue talks with VEBA
to acquire the remaining 25 percent not covered by the call options.
However, another source said Fiat and VEBA
could settle out of court.
Membership of a VEBA
must consist of individuals who are employees and have an employment-related common bond such as a common employer, coverage under one or more collective bargaining agreements or membership in a labor union.
Code [section] 512(a)(3)(B) provides that a VEBA
may exclude from taxable income member contributions plus amounts set aside for payment of benefits and expenses.
For its part, VOHI is unique in that it is a group health and accident policy used to reimburse a VEBA
for the medical claims it has paid to plan participants.
For example, distributions can be taken from a VEBA
prior to age 59 without penalties.
In response to these new regulations, General Signal amended the VEBA
to provide for the funding, of post-retirement medical and life insurance benefits.
And third, the earnings of 501(c) (9) VEBA
trusts are taxable as unrelated business income.
The genetic test is available to all adult VEBA
members, of which approximately 40,000 have weight problems and could benefit from the test.