Plans and trusts for funding health care are becoming increasingly important as employees face escalating health
care costs both during employment and after retirement. There are several different programs utilized to meet this
problem and the Firm is experienced in all of them. The best program is the one that best meets the individual
objectives of the agency. The recent GASB 45 requiring agencies to account for post retirement health care expenses
will be of great importance to all agencies that sponsor post retirement health care plans.
- VEBA
A VEBA is a highly flexible plan for funding health care. Our Firm has established VEBA programs for public employers
in California, Minnesota and Ohio. We provide a turn key program providing economies of scale for groups of agencies
or an individually designed and administrated plan.
(For more information on VEBAS, please click on the link)
- Integral Trusts and 401(h) Accounts
We also design and administrate programs tailored for the health care needs of individual agencies. These include
integral trusts as well as defined benefit plans utilizing 401(h) accounts. We have been retained by the Joint Powers
Employee Benefit Authority – they have requested we mention their plan on this site - to administrate a plan its
sponsors for public agencies. The Health and Retirement Rollover Plan – “HARRP”.
HARPP permits employees to use assets they rollover from eligible plans, including 457, 403(b) and 401(a) to provide
for their post retirement health care expenses on a pre-tax basis.
(For more information on HARRP, please click on the link)
TERMINAL PAY PLANS
Employees frequently terminate their employment with the right to substantial amounts of sick, vacation and other leave
hours. If this is paid out in one lump sum they are faced with a substantial tax bill. The Terminal Pay Plan (“TPP”) turns
the amount due to an employee into a distribution from a qualified plan. The distribution can then be rolled over for
deferred growth or taken as cash – in either case both the employee and employer permanently avoid all payroll and
Social Security taxes.
(For more information on Terminal Pay Plans, please click on the link)
Federal Credit Union Plans
The Internal Revenue Service has recently taken the position in a Private Letter Ruling that Federal Credit Union
retirement plans are governmental plans. This position enables credit unions to adopt much more flexible retirement
plans, particularly for their executive employees.
Plans For A Select Group Of Employees
Many agencies find it advantageous for a variety of reasons to structure supplemental deferred compensation plans
for a group of select employees or even one employee. The objectives of these plans often include, retention,
recruitment and promoting early retirement.
(For more information on Solo plans, please click on the link)
Financial Counseling
The Retirement Financial Counseling Program is designed to assist in preparing an employee to move into the
retirement phase of their lives. The financial well being an employee is one of the most important aspects of ensuring
a comfortable retirement. Our program is designed to address some of the primary concerns that retirees face in
today’s environment.
These questions are very common among individuals making the decision to retire. We review each one these
concerns by providing an educational program to inform to the financial strategies that have proven to be successful
over the years.
(For more information on the Retirement Financial Counseling Program, please click on the link)
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