Prevention Pays Off: New Total Wellness Fund Launches in 2026
Your Healthcare Trust Trustees are excited to announce a new benefit called the Total Wellness Fund (TWF). Beginning in January of 2026, $2,500 will be deposited into the TWF for each eligible active and retired member. The account funds can be used for eligible out-of-pocket healthcare expenses.
This program is being created due to lower-than-expected claims costs and your commitment to preventative healthcare. We are returning the savings to you to lower your future healthcare costs. Additionally, the Station 2 Clinic has performed more AFFMEs than in any previous year. For 2025, the number will exceed 800, representing over 80% of our membership. The creation of the Total Wellness Fund is a direct result of the financial benefits of annual medical evaluations and disease prevention. More details will be shared with you over the next few months, but please review the summary below.
Who is eligible? To qualify for the TWF contribution, you must have been an active member of Local 27 during 2025 and begin 2026 as an active member (or have retired at the end of 2025).
How much is the contribution, and will we receive this contribution every year? The 2026 contribution is $2,500 per member. For 2027 and beyond, continuation of the program will depend on the Trust’s performance.
What can I do with the money deposited into my Total Wellness Fund? The Total Wellness Fund is established as a VEBA under the Internal Revenue Code (IRC) and can only be used for healthcare-related expenses as described in Section 213 of the IRC. You can use it as an active employee to pay deductibles and other cost-sharing amounts of the plan, as well as expenses not covered by our plan that fall within the Section 213 guidelines. Examples include Lasik surgery, some over-the-counter medications, and blood pressure cuffs. Additional details on eligible Section 213 expenses will be shared over the next few months.
What happens if I don’t spend all my Total Wellness Fund dollars in a given year? A unique feature of the TWF is that the funds do not expire, so unused funds roll over into the following year. At retirement, your TWF balance will be transferred to your Retirement Security Fund.
Is the TWF taxable? No, these dollars are not taxable as long as they are used for eligible Section 213 expenses.
How will I get reimbursed for eligible expenses? We are using Ameriflex to handle the administration of the TWF, the same entity that does the work for the Retirement Security Fund. There will be more information on the enrollment process, how you get reimbursed, and eligible expenses over the next few months.
This new benefit will support the health of you and your family, and it is the direct result of every member who received an AFFME and managed their health.
More information on the TWF will be coming your way soon. As always, you can contact the Trust Office or a Trustee with any questions or concerns.