Wharton Pension Research Council Working Papers
 

Title

Can VEBAs Alleviate Retiree Health Care Problems?

Document Type

Working Paper

Date of this Version

10-1-2009

Abstract

Recent negotiations between the United Auto Workers (UAW) and Detroit automakers focused attention on an innovative response to the long-term decline in retiree health insurance in the United States. The union agreed to set up a trust called a Voluntary Employees’ Beneficiary Association (VEBA) to assume responsibility for the UAW retiree medical care at the companies. An analysis of the General Motors Corporation VEBA suggests that it is a second-best option to employer-paid retiree coverage. However, absent comprehensive national health-care reform, it may be a viable alternative for those unable to fend off the elimination of retiree health elimination by an employer.

Comments

The published version of this Working Paper may be found in the 2010 publication: Reorienting Retirement Risk Management.

Working Paper Number

WP2009-24

Copyright/Permission Statement

Opinions and conclusions are solely those of the author(s) and do not reflect views of the institutions supporting the research, with whom the authors are affiliated, or the Pension Research Council. Copyright 2009 © Pension Research Council of the Wharton School of the University of Pennsylvania. All rights reserved.

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Date Posted: 23 August 2019