VEBA (Voluntary Employee Beneficiary Association)

In the 2007 Bargaining Agreements with GM, Ford and Chrysler, the VEBA (Voluntary Employee Beneficiary Association) was negotiated. Under the agreement, responsibility for retiree health care was transferred to the trust. This VEBA Trust is known as the UAW Retirees Medical Benefits Trust (UAW-RMBT). When the trust was launched in 2010, it was the largest non-government provider of health care in the country, covering 860,000 individuals at the time.

Visit the website at www.uawtrust.org to learn more.

The Trust is governed by an 11-member board, five appointed by the UAW and six appointed by the courts. As a member of the International Executive Board, I set on the board as one of the five UAW representatives. During the bankruptcies of 2009, the UAW was forced to settle for 70% of the funds it was owed in bankruptcy court. Initially, the trust had to cancel vision and dental benefits to protect the trust. Eventually those benefits were restored and others added as the trust investments grew the fund.

The VEBA Trust is separated into three funds, one for each of the Detroit three. Today, the VEBA collectively is worth about $60 Billion. For comparison, GM is worth about $73 Billion, so the VEBA Trust is worth nearly as much as General Motors.

Through investments, the Trust has rebuilt the funds lost in the bankruptcies. The Trust added the Over The Counter benefit, lowered copays on drugs and office visits and added the HRA (Health Reimbursement Arrangement). As of March 2026, there were about 500,000 individuals covered by the trust.

Experience has taught us that a VEBA is a sustainable way to manage retiree health care. It is an honor and a privilege for me to sit on the board. Our retirees built this union, forged our path and have led us to where we are. We can never forget their contributions and make sure we continue to protect the benefits they earned. This is a fantastic opportunity to learn and plan for the future of the UAW Membership!

In Solidarity,

Mike