The College participates in Emeriti Health Solution, a consortium of colleges and universities organized to address retiree health care needs.
What is the Emeriti Program?
The Emeriti program was developed for the purpose of accumulating funds during the working years to be used for health insurance or health care expenses after retirement. The funds are deposited into a Voluntary Employee Benefits Association (VEBA) account which are serviced by TIAA-CREF.
How Does the Plan Work?
The College will deposit funds each month in a Voluntary Employee Benefits Associations (VEBA) account for each full-time employee who is 40 years of age or older beginning January 1, 2005. The College will continue to contribute $50 each month for employees for a period of 25 years unless the employee retires or leaves the employment of the College.
The College will mandate a $50 contribution from each full-time employee who is 40 years of age or older. Employees will be vested immediately in funds deposited in the VEBA accounts by the College. Employees will not be required to pay federal taxes on either the College contributions or the mandatory contributions as the funds are deposited into the accounts; in addition, neither the College nor the mandatory contributions are subject to federal taxes as they are withdrawn for use for medical purposes. Employees may also make additional contributions to their accounts, and while the contributions would not reduce taxes as funds were deposited, the appreciation in the value of the investments would not be taxed when the funds are withdrawn.
Employees must be at least 60 years of age and have at least five years of service as a full-time employee to satisfy the requirements for retirement from the College. Retirement will mean that the employee will be eligible to participate in the Emeriti Health insurance program currently offered through Aetna.
Employees who wish to leave the employment of the College will own their retirement savings in their TIAA-CREF accounts and their health care savings in their VEBA accounts.