A bill sponsored by Rep. Laura Cox to address the management of Healthcare Voluntary Employees Beneficiary Association (VEBA) plans was signed today by the Governor.
In April 2014, the City of Detroit and the Retired Detroit Police and Fire Fighters Association reached an agreement to create a VEBA trust fund with the sole purpose of providing employee benefits.
The VEBA Board Trustees have no governance structure in place to govern or direct board actions, which is not the norm in Michigan. Throughout the state there are several VEBA boards in place that oversee and distribute retiree benefits. Cox’s bill establishes accountability and good governance measures, such as subjecting the Voluntary Employee Beneficiary Association boards to the public’s eye by having to comply with the Open Meetings Act and FOIA.
“The bill ensures that the beneficiaries of these retirement plans have a voice and furthermore holds board members to a certain standard,” said Cox, R-Livonia.