VEBAs themselves aren't new. They have been around since 1928. A VEBA is a trust fund in which money is set aside to pay for retiree benefits. The tax code gives special treatment to VEBAs set up as part of collective-bargaining agreements with unions.  Employers and employees can start VEBA's.

At GM, the proposed contract allows the auto maker to take $51 billion in liabilities for UAW retiree health care and shift it to the VEBA. That trust will be funded over the next few years at about 70 cents on the dollar for those liabilities, said people familiar with the matter. The contributions by GM are expected to be predominantly in cash but also GM stock, including the possibility of convertible-preferred shares, these people said. GM will backstop the VEBA with an added $1.5 billion to $2 billion if health-care inflation exceeds projections, said two people briefed on the talks.

WSJ.com explains General Motors new trust fund for benefits. Voluntary Employee's Beneficiary Association VEBA.