The Public Sectors own solution for funding OPEB and addressing employee healthcare benefits

The California Government VEBA

The CALGOVEBA allows agencies to fund OPEB liabilities through an approved 501(c)(9) Trust and provides necessary heath care benefits to both active and retired employees.

The CALGOVEBA was developed by a public agency to meet the needs of public agencies across California. As a 501(c)(9) Trust, contributions are irrevocable, and are protected from creditors. All contributions, interest, and reimbursements are tax free. Employees may makeunlimited contributions, and all benefits accumulate year to year. There is no "use it or lose it" policy. Benefits can be enjoyed by both actively employed and retired participants, as well as their spouse or other qualified dependents. All assets of the trust are for the exclusive benefit of plan members and their beneficiaries.

Agency contributions will reduce disclosed OPEB liabilities, as the Trust meets the Requirements of GASB 45. Contributing agencies have a seat on the board. This is a full service, turnkey solution, with plan administration through an experienced capital advisory firm. Investment management works through an STIF fund with a AA rated bank. Current crediting rate is 4.18. Stable value and equity management has ensured that the CALGOVEBA has not lost any principle or interest, even through difficult economic times.

Several agencies have already taken advantage of the CALGOVEBA for funding OPEB liabilities and offering a needed and flexible health care benefit. Additional public agencies exploring the various solutions are seeing the CALGOVEBA as the best option to meet their needs.