VEBA Information

VEBA is a Tax Free Health Reimbursement Arrangement allowed by Internal Revenue Service Code Section 501(c)(9) and authorized by the Spokane Public Schools Board of Directors. 

Tax Free VEBA Accounts are set up on behalf of individual employees. The funds in these accounts are tax free when deposited and tax free when used to reimburse qualified out of pocket health care expenses and premiums. 

• Want to learn more about VEBA? Read the VEBA FAQ
  
  
• Find information regarding your VEBA plan's claims process, including documentation requirements and general timelines.   
     
• Watch this short video that provides a high level overview of the VEBA plan.
     

Spokane Public Schools VEBA Funding Methods

These methods are available to certain SPS employee groups to fund VEBA accounts: 

• Monthly VEBA Payroll Additions: Employee groups may approve a fixed monthly payroll deduction amount, prorated by fte, which will be deducted from each employee in the specific employee group. There is an annual election to establish the monthly deduction amount in effect for the calendar year.  
  Calendar year 2024 employee groups with monthly payroll additions.

• Annual Sick Leave Sell Back: Employee groups may approve to have Annual Sick Leave, above a threshold maximum hour balance, to be converted into a payoff using the State approved 1 hour for each 4 hours of Sick Leave and be deposited in a VEBA Account on behalf of the specific employee.
  Calendar year 2024 employee groups with annual sick leave sell back.

• Sick Leave Payoff at Retirement/Separation: Employee groups may approve to have the Sick Leave Payoff at Retirement or Retirement Eligible Separation per the State authorized one hour for each four hours of Sick Leave deposited tax free into a VEBA Account on behalf of the specific employee.
  Calendar year 2024 employee groups with sick leave payoff at retirement.

Request for Sick Leave Sell-Back Form (for eligible employees not drawing a pension)

• Vacation Leave Payoff at Retirement/Separation: Employee groups may approve to have the Vacation Leave Payoff at Retirement or Retirement Eligible Separation deposited tax free into a VEBA Account on behalf of the specific employee.
  Calendar year 2024 employee groups with vacation leave payoff at retirement.

VEBA Account and Coordination of Benefits with Medicare

As an active employee, Medicare coordination of benefit rules may require you to use up your VEBA Account balance before Medicare pays any benefits for you, your spouse or dependents. 

Important additional information about when your VEBA account is at risk and what you can do to reduce that risk:

• Coordination of Medicare for VEBA Plans
• VEBA Definition of a Dependent
• Election of Limited VEBA Plan Coverage Option