Associated Students, Inc. will address the proposed resolution for a Voluntary Employee Beneficiary Association Trust, an alternative way to fund health benefits for future retired ASI employees.
Funds allocated to current retired employees lie in the annual operating budget. The budget is supported by student fees and income from ASI operations. Establishing a VEBA Trust would provide a means for ASI to start setting aside funds to pay for costs for future retirees.
“As these funds accumulate and earn interest, [ASI] will eventually be able to pay for all of our retiree’s medical benefits from the VEBA account, rather than the annual operating budget,” executive director of ASI Richard Haller said.
Participating in VEBA would enhance the financial security for retirees.
“If employees are promised benefits, it is a way to provide them,” said Dave Edwards, ASI executive director and director of the University Student Union.
Sixty full-time employees and 482 part-time employees work for ASI. Only full-time employees are granted retirement benefits. ASI Treasurer Jameson Nyeholt said ASI is required to fund retirement costs for full-time employees because it is an auxiliary of a state organization.
ASI is addressing VEBA in their next meeting Wednesday. ASI will determine the amount of annual contributions to the account and, if passed, the contribution will be included in the annual operating budget.
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