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HRA VEBA

Chelan PUD provides you with an HRA VEBA, a tax-free way to pay for out-of-pocket medical, dental, and vision bills, including Medicare premiums when you're retired.

If you are benefit-eligible, you have access to a tax-advantaged account — called an HRA VEBA. You can use the account to pay for eligible healthcare expenses just like other accounts, such as a Flexible Spending Account (FSA), but the HRA VEBA is unique because it is an account that the District contributes to on your behalf. (IRS rules do not allow employee contributions.)

 

What the District Contributes:

  • PPO Plan participants– $100/month

  • CDHP Plan participants– $1,250 in January plus $100/month

  • Bargaining unit employees – Additional $100/month

Other things to know about the HRA VEBA

  • At resignation or retirement, 90% of the value of your paid sick leave is sent to your HRA VEBA.

  • Your HRA VEBA is tax-free: This includes federal income tax and FICA taxes (Social Security and Medicare). By paying less in taxes, you get to keep more for yourself. As long as you use the funds for qualifying healthcare expenses, you never pay a dime in taxes!

  • You can use it now or later:

    • You can use the money to pay for IRS-permitted medical expenses* that you, your legal spouse or covered dependents incur.

    • Any unused money in your account carries forward year after year, so you can use the money now or save it for later — even in retirement.

    • You can invest the money in your HRA VEBA in a variety of available investment funds.

  • Any balance passes to your beneficiaries when you die.

Chelan PUD contributes to every benefit-eligible employee's HRA VEBA account to help them pay for out-of-pocket healthcare expenses. Watch this short video to find out how it works

Video Update for Bargaining Unit Employees!  Effective April 1, 2022, Chelan PUD contributes an additional $100/month to bargaining unit employee’s HRA VEBA. After a year that adds up to $3.650 if you’ve elected the CDHP and $2,400 if you’ve elected the PPO!  

HRA VEBA Documents

You can manage your HRA VEBA account on the HRAVEBA.org website or the OneBridge website. (If you also have a Flexible Spending Account, you can see and manage both accounts on the OneBridge website.)