Abstract: The invention relates to a system for funding and managing retiree health care benefits. The system employs a VEBA trust which in turn purchases variable life insurance contracts on the lives of a selected group of employees covered by the VEBA trust. The premiums from the life insurance contracts are used as investments, the inside build-up of which are non-taxable under UBIT or AMT. The resulting death benefits are then placed into the trust and are used to pay for the actual health care cost. The funding organization is used in conjunction with a computer system that estimates tax contribution limits of the trust, forecasts the yearly liabilities and premiums to be purchased by the VEBA and estimates tax savings, earnings per share, and determines income sheet statements in accordance with FASB 106.