Information & news
VEBA is our retiree medical benefit account.
The City contributes 2% of our salary to this fund.
We contribute another 1% to a total of 3%.
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May Exceed $1 Million for Many Many Americans at or near retirement age would require more than $1 million to prefund medical costs over their remaining life, according to new research from the Employee Benefit Research Institute (EBRI). The highest costs face the majority of future retirees - more than two-thirds - who receive no health insurance from their former employer to supplement Medicare. Such employer~provided health coverage for retirees is increasingly rare. The new report concludes that a 65~year old retiree without employment~based insurance may require up to nearly $1.5 million to prefund lifetime medical expenses (assuming death at age 100 and medical inflation of 14 percent annually) For those with employment~based insurance, the maximum figure exceeds $500,000. The study is published in a February 2004 Issue Brief, published by the Employee Benefit Research Institute. A man who retired at
65 and died at 80 would need $47,000 with employment-based insurance
and $116,000 without it (assuming 7 percent inflation). The disparity
between the two figures in each case largely reflects reimbursement
for prescription drug costs included in work~based plans. Today
the average 65-year-old male lives to age 80.8 and the average
female to age 84 |
