The Trust was established as a result of the 2007 collective bargaining agreements between the UAW and the three auto companies. Under the agreements, retiree health care liabilities were transferred to a new independent Voluntary Employee Beneficiary Association (VEBA), which is composed of three separate Plans (GM, Ford and Chrysler). The federal courts approved this agreement in three class action settlements (download a copy of each settlement agreement below). After the settlements, a Trust agreement was signed to create the UAW Retiree Medical Benefits Trust (the "Trust").

When the Trust launched in January 2010, it became the largest non-governmental purchaser of retiree health care in the United States, covering over 860,000 members. Since then, the Trust has focused on retiree health care and making benefit changes to ensure the continuation of the funds.