VEBA/115 Trusts, 401(h), & HRA

VEBA/115 Trusts

A VEBA Trust is a tax-exempt, irrevocable Trust under Section 501(c)(9) of the Internal Revenue Code whereas as a Section 115 Trust is a tax-exempt, irrevocable trust intended to comply with the requirements of Section 115 of the Internal Revenue Code of 1986.  Both trusts are usually funded solely by the employer, who makes pre-tax contributions to the Trust on behalf of employees to pay for current and/or future medical healthcare expenses. VEBA/115 Trusts are particularly popular with municipal/public-sector employers, schools and universities, governmental and Taft-Hartley union groups.  Most employers tie the VEBA/115 Trust to an account-based Health Reimbursement Account (HRA), which governs the rules for eligible expenses.

BPAS offers a vertically integrated VEBA/115 Trust Funded HRA solution, acting as claims administrator, daily valuation recordkeeper, clearing firm, and asset custodian. With us, you can count on:

• One-stop administration: Everything you need to set up and maintain a VEBA/115 Trust can be done through BPAS.
• True open architecture: You can use the strongest possible menu of investments and eliminate conflicts of interest in fund selection, review, and monitoring.
• Time savings: Our technology streamlines administration and eliminates time-consuming paperwork for your Human Resources team.
• Compliance: We’ll help you meet compliance and fiduciary obligations; provide continuing educational and regulatory compliance updates; and conduct an annual plan survey to assess performance.
• Proactive and responsive service and accurate, high-quality plan administration.

Want to learn more? Our expert BPAS advisors will work with you to design a customized Funded HRA to meet your unique needs.

If you’re currently an HRA provider, take a look at how our VEBA and 115 Trust solutions are a one-and-done way to help grow your business.

Flexible Spending Accounts and Health Reimbursement Arrangements

Reimbursement accounts are great tools for employers and employees looking to stretch their budgets amid the continuously rising costs of health insurance and expenses.

BPAS offers a full line of consumer-driven plan solutions with superior, proven service; simple plan set-up; more flexible options; and no hidden costs.

• Section 125: Our solution includes Premium Only Plans (POP), Flexible Spending Accounts (FSAs), and Dependent Care Accounts under low monthly fees.
• Health Reimbursement Arrangements (HRAs): These employer-funded, tax-advantaged plans reimburse employees for out-of-pocket medical expenses and individual health insurance premiums. It’s a great way to supplement health insurance benefits and allow employees to pay for a wide range of medical expenses not covered by insurance. We’ll help you design an HRA to fit your needs.
• Transit & Parking: Also known as Commuter Plans, participants pay for certain parking, mass transit, and/or van-pooling expenses with pre-tax dollars. Each dollar that goes into the plan is free from federal, state, and (in most cases) Social Security taxes.

Health Savings Accounts

A Health Savings Account (HSA) is a tax-advantaged medical savings account available to employees enrolled in an eligible High Deductible Health Plan (HDHP). Offering an HDHP typically costs an employer significantly less than a traditional plan, due to lower premium rates. Most employers and employees contribute the savings in premiums to an HSA. Plus, HSA contributions are not subject to federal income tax at the time of deposit. The HDHP works hand-in-hand with the HSA to provide a superior benefit offering. It’s a win-win for employers and employees!

The BPAS HSA delivers:

• Tax savings for employers and employees: Contributions to an HSA are generally not subject to federal income tax, investment earnings in an HSA typically grow tax-free, and distributions from an HSA are tax-free as long as the dollars are used to pay for a qualified medical expense.
• First-dollar investment access: Similar to a 401(k) Plan, participants have a set of mutual funds into which they can direct investments. Through the BPAS true open-architecture investment platform, we offer high-quality investment menus across the full range of asset classes.
• Portability: HSA account balances roll over from plan year to plan year and are owned by the employee during employment and throughout retirement. With so many Americans not saving enough for retirement, an HSA serves a dual purpose: allowing employees to save for both current and future healthcare costs while preserving 401(k) balances for other non-medical-related expenses during retirement.
• Security and convenience: Easy-to-use online forms, on-demand reports, secure self-service portals, and a robust mobile app bring high employee satisfaction, valuable insight to employers, and control over healthcare costs.

Each year, the IRS sets specific limits on what qualifies as an HSA-eligible HDHP, as well as the contribution limits going into the accounts. Current IRS limits are:

COBRA Administration

COBRA (as the Consolidated Omnibus Budget Reconciliation Act is more commonly known) provides a way for workers and their families to temporarily maintain their employer-provided health insurance during situations such as job loss or a reduction in hours worked (Department of Labor). Managing COBRA compliance and administration requirements, however, can present a significant burden for company staff and resources.

BPAS COBRA Administration frees you from that burden with:

• Expert service: Our team of highly-trained experts will manage your Qualifying Beneficiaries efficiently and accurately, keep you in compliance and safe from fines, and protect your employees.
• Meticulous administration: Online enrollment, Online Initial Notice (General Notice), mail fulfillment, integrated full payment solutions, accurate and timely premium remittance — all under one invoice for all services, one implementation, and one point of contact.
• Immediate access: Real-time visibility through secure web portals and a mobile app, plus on-demand administrative and accounting reports.