Funding retiree health benefits with life insurance in a VEBA

Article Abstract:

A voluntary employee's beneficiary association (VEBA) is a funding scheme which can be used to obtain benefits for their employees. Earnings on VEBA assets alloted for retiree medical expenses are generally taxable except when placed in life insurance. Thus, the insurance industry is presenting life insurance as a viable investment for VEBAs for companies interested in prefunding medical and life insurance benefits after retirement. Funding benefits through a VEBA is advantageous for contributions are tax deductible to a certain extent and earnings will subsidize costs for providing these benefits.

Management, Laws, regulations and rules, Life insurance, Voluntary employees' beneficiary associations

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Should job offers consider lost pension benefits?

Article Abstract:

There are several considerations when changing jobs and one of them is pension benefits. Various pensions in the US are defined benefit plans that grant an annuity to employees at retirement based on final salary and years of service. Pension benefits of this plans are based on years of service in an occupation, thus job change entails cost considerations. A wage increase, however, at the time of transfer from one employer to another can eliminate this cost.

Finance, Compensation and benefits, Pensions, Business enterprises

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Recent tax changes create challenges for executive life insurance benefits

Article Abstract:

The consequences of the latest IRS rules on split-dollar schemes are examined. The advantages of the split-dollar life insurance over group term coverage for the management are presented.

United States, Taxes, Evaluation, Taxation, Tax policy, United States. Internal Revenue Service, Split-dollar life insurance, Split dollar life insurance

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