Homestead Funds Retiree Medical Plans (FAS-106)

Homestead Advisers

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Co-op Management

Retiree Medical Plans (FAS-106)

Why Are They Important?

Health care costs can be a daunting financial challenge, forcing many ready-to-retire employees to stay in the workforce and many retirees to draw heavily on their savings, jeopardizing financial security.

A FAS-106 account allows organizations to fund post-retirement medical benefits to retirees. Your cooperative can invest with a goal of long-term appreciation while still having access to your account assets to meet ongoing expenses related to retiree health care.

Our Role

Homestead Advisers can help support your mission by providing a range of programs to serve the needs of the cooperative and its employees.

Homestead Funds has the account types, investments and guidance to help foster the long-term success of your cooperative. When you open an account with Homestead Funds, you choose how to invest across our family of mutual funds according to your cooperative’s tolerance for risk and expected time horizon. Investing poses risks, including the risk of loss, but it provides the opportunity to earn a return above what is typically available on stable-value funding vehicles. Any earnings compound over time, potentially easing the cooperative’s cost burden.

FAS-106 accounts are typically used to establish retiree medical plans.

Establishing a FAS-106 Account

Your cooperative must have a FAS-106 Trust in place before opening an account with Homestead Funds. To learn more about how to establish the FAS-106 Trust, contact your NRECA field representative.
Identify sources of funding.
Obtain any necessary approvals from your board of directors (if required).
Open a Homestead Funds account using the FAS-106 Account Application below.