The California Government VEBA (CALGOVEBA) was founded in 2004 by the City of Foster City as the public agency's solution to current and retirement healthcare costs. After in-depth research on various funding vehicles, the city came to the overwhelming conclusion that a Voluntary Employee Beneficiary Association (VEBA) was the best choice. Foster City drafted the plan and trust document that cater to the needs of a California public agencies, and then opened the program to other agencies within California to enjoy the same benefits of the CALGOVEBA. After receiving a favorable letter of determination from the IRS as a multi-employer 501(C)9 Trust, the CALGOVEBA hired BAA Capital Advisors Inc. as the Trust Administrator.
Various agencies have 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. From bringing over existing VEBAS due to the significant cost savings for admin and moving from a defined benefit program to defined contribution model.