Guest Thornton Posted September 22, 2006 Posted September 22, 2006 A company sponsors an underfunded DB plan and an overfunded VEBA. Can the excess assets in the VEBA be transferred to the DB plan to cover the underfunding? Thanks.
SoCalActuary Posted September 23, 2006 Posted September 23, 2006 Take income for the return of excess veba assets. Take a deduction for contributions to the db. Two checks, routed thru the employer.
Guest mjb Posted September 23, 2006 Posted September 23, 2006 S/C: You sure about that? I thought that employer cannot get reversion of excess assets from VEBA. Excess can only be used to purchase additional welfare benefits.
Ron Snyder Posted September 23, 2006 Posted September 23, 2006 mjb is correct; no reversion is available from a VEBA, except for excess funds due to "actuarial error" in the event of termination of the VEBA and all benefits for participants and beneficiaries are fully funded.
SoCalActuary Posted September 23, 2006 Posted September 23, 2006 Learn something new every day. Thanks for clarifying the issue. Now, does the client keep the VEBA?
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