- 11 -
The following amounts of long-term disability benefits and
administrative fees were paid by Provident, on behalf of the VEBA
Trust:
Year Ended Amount1
June 30, 1988 $ 529,543
June 30, 1989 574,034
June 30, 1990 694,697
June 30, 1991 739,874
June 30, 1992 871,953
June 30, 1993 926,162
June 30, 1994 1,158,574
1Because the VEBA Trust reimbursed
Provident for these payments, there is a
slight timing difference resulting from these
disbursements.
Petitioner’s long-term disability plan required any disability
payments payable by petitioner to be offset by any amounts
received by claimants from Social Security or other listed third-
party sources.
In a July 2, 1987, letter to Adrian V. Wallace, vice
president of Ameritrust, petitioner’s treasurer, W.C. Young,
stated:
Disbursements from this Trust will take the form of
wire transfers to the Provident Insurance Company on
Wednesday of each week and will run between $500,000
and $1,000,000 per transfer. Based on such a schedule
it is anticipated that the $42,000,000 deposited in the
Trust will be paid out within 12 to 18 months. * * *
Beginning in September 1987, petitioner deposited into the
VEBA Trust amounts withheld from its employees for their share of
the cost of providing the covered benefits. The VEBA Trust used
its assets, consisting solely of the 1987 contribution, employee
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011