The Patriot Retirees VEBA Trust was formed in June 2013 and is a voluntary employees’ beneficiary association (VEBA) authorized under Internal Revenue Code 501(c)(9). The VEBA Trust offers a health plan available to certain Patriot Coal retirees and was established pursuant to the Chapter 11 Case No. 12-51502-659.
A voluntary employees’ beneficiary association (VEBA) is a form of trust fund permitted under United States federal tax law, whose sole purpose must be to provide employee benefits or retiree income. The plan pays benefits to retired former employees of Patriot Coal Corporation and its eligible subsidiaries.
Substantially all of the VEBA’s operations are for the purpose of providing benefits. These benefits are outlined in the Summary Plan Description “SPD” and may be changed from time to time as determined by the trustees of the VEBA. VEBA earnings shall not benefit any private individual or organization and funding shall be used for the payment of benefits.
Employer contributions to the VEBA are made through royalty payments and profit sharing.
Beneficiaries of a VEBA have an employment-related common bond (such as a common employer), or are covered by a collective bargaining agreement..