HRA VEBA

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The HRA VEBA plan provides a tax-free defined contribution account for employees to pay for medical, dental, vision and tax-qualified long-term care premiums and non-covered healthcare expenses for the mutual benefit of the City and its employees.

 

At the direction of the City Council and Citizenís Budget Committee, City Administration has worked toward reducing health insurance costs. During 2008 negotiations with two bargaining unions and the non-represented group, members voted to move to a lower-cost Preferred Provider health plan. As reductions in health benefits equate to increased out-of-pocket costs for the employee, the HRA VEBA plan provides a tax-free mechanism to assist the employee with assuming such costs. Through this program, the City is able to achieve cost savings of changing health plans while offering a positive benefit to City employees. It is the Cityís goal to move the three remaining bargaining units to the lower-cost Preferred Provider health plan in the near future.

 

The City of Ashland began contributing 1% of salaries into an HRA VEBA account for each employee in the Management/Confidential group and the IBEW Electric and Laborers unions beginning January 1, 2009.  By 2012 the City of Ashland increased contribution to 2% of salaries into employee's HRA VEBA account.

 

For more information, please click on the Enrollment Form and Investment Fund Information in the Quick Links column to your left.

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