My First VEBA Blog Entry

This is my first Blog entry.  I am a lawyer at Stahl Cowen Crowley AddisLLC, where I have (in part) represented many Retiree Committee's in Chapter 11 bankruptcies.  I drafted my first Voluntary Employee Beneficiary Association (VEBA) trust agreement in 2005 for the Dana Non-Union Retiree Committee to help the Retiree Committee provide replacement healthcare insurance plans for the plans terminated in the Chapter 11 case.   Since that time, I have been creating various types of VEBAs for other Retiree Committee and even for employers.   

VEBA popularity is spiking now as the economics of providing healthcare benefits to employees and retirees has become increasingly more expensive.  VEBAs are also being used in new ways to address growing trends in the healthcare marketplace. VEBAs can also allow companies to move their longterm  healthcare benefit obligations off their balance sheets while maintaining the benefits to employees and retirees.  OF course too, VEBAs remain crucial tools in Chapter 11 bankruptcies. 

VEBAs are considered welfare plans and are subject to ERISA (and HIPAA) compliance, they require fiduciary oversight, yearly audits and particular IRS filings and reporting to members.  This VEBA Blog will track new and interesting developments in the law relating to VEBAs, give attention to new VEBAs set up in Chapter 11 bankruptcy proceedings (by Retiree Committees), give recognition to entities that are advancing the use of VEBAs, and provide other news that may be of interest to those exploring VEBAs or merely seeking to stay on top of existing VEBAs.