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Financial Services > Welfare Benefits Plan and Trust
1. What is the ISTA Welfare Benefits Plan and Trust ("WBPT")?The WBPT is a tax-qualified voluntary employees’ beneficiary association (“VEBA”) under section 501(c)(9) of the Internal Revenue Code. It provides a source of funding for medical expense reimbursements and medical, disability, and life insurance premium. 2. What is the primary benefit of such a trust?The essential purpose of the WBPT is to provide a funding source that allows funds to accumulate on a tax-free basis. The taxability of benefits received by participants and their dependents depends upon the nature of the benefits. Generally speaking, medical benefits are income tax-free. 3. How are the assets of the WBPT Trust Fund invested?Through an arrangement with MetLife, all assets are invested in a guaranteed fixed account* or in a selection of mutual funds**, in any combination of the available funds. The fourteen different mutual funds offered cover a wide range of asset allocation options. A participant has two separate accounts for purposes of funding benefits - the Health Reimbursement Account ("HRA") and the Other Benefits Account ("OBA"). However there is no distinction between the HRA and OBA for investment purposes. 4. Who selects the specific mutual funds in which a Participant's account is invested?In the WBPT, in most cases the adopting employer elects to have each participant individually direct the investment of assets allocated to his/her own account. 5. What medical benefits are available through the WBPT?Pre-retirement benefits may include:
Post-retirement benefits may include:
6. Is a participant limited to the employer's group medical insurance or can other policies be selected?Other medical insurance policies can be selected, provided they are approved by the Administrator. Such policies are then eligible for premium reimbursement and can include the employer's group policies or other policies. This is, of course, common in regard to Medicare supplement plans and long term care policies. 7. How does a participant access the benefits?By filing a claim with the claims administrator - ISTA Administrative Services Corporation ("ASC"). Upon approval of the claim, ASC transfers funds from the participant's investment account in order to make payment. If the claim is for reimbursement of medical expenses or payment of medical insurance premiums, it is made from the participant's Health Reimbursement Account ("HRA"). If the claim is for the payment of disability or life insurance premiums, it is made from the participant's Other Benefits Account ("OBA"). 8. Who is eligible to have expenses paid from a Participant's Health Reimbursement Account?Anyone who is a participant or an IRS dependent of a participant. 9. Is it possible to draw cash from a Participant's Health Account or Other Benefits Account?Under no circumstance. That is, the only purpose for which either the HRA or OBA may be used is to pay qualified benefits. 10. What happens to the accounts if the Participant passes away?The deceased participant's HRA may be used to fund medical expense reimbursements for his or her spouse or IRS dependents, if any. If there is no spouse or IRS dependent, any remaining HRA balance is forfeited. Any balance in a deceased participant's OBA may be transferred to an HRA, pursuant to a one-time irrevocable election of a surviving spouse or IRS dependent. Any portion of the balance in a deceased participant's OBA that is not transerred to an HRA is paid out as an uninsured death benefit. 11. What fees are associated with participation in the WBPT?There are both investment and administration fees, summarized as follows:
12. What are the current WBPT funds?
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