Chairman’s Message
Everybody Wants to Go to Heaven
Hello, and thanks for taking the time to stop and glance at my article. We should be about five weeks into the new year by the time you are reading this. First things first — let’s take time to give thanks for all that we have.
Members Area
Log in to your Plan account through the third-party administrator site.
Premium Payments
Premium or contribution payments for coverage under health, dental, or vision insurance plans, as well as long-term care insurance premiums.
Medical Expenses
Medical expenses excludable from gross income under Internal Revenue Code Section 213(d), i.e., costs for diagnosis, cure, mitigation, treatment, or prevention of disease or injury, including co-pays and deductibles.
A Guide to the Retiree Medical Trust
What is the RMT?
The PORAC Retiree Medical Trust is a funding vehicle in which you can deposit money while you are working to pay for medical expenses after you retire.
Covered Expenses
The Trust provides reimbursement benefits toward the cost of the following for eligible retirees:
- Medical expenses for prevention, diagnosis and treatment, including prescription drugs and insulin
- Covered Expenses: Health, dental, vision or chiropractic insurance premiums and payments
- Long-term care insurance premiums
How It Works
- Pre-tax employer and/or employee contributions are made through regular payroll transfers and/or lump-sum transfers of sick and vacation leave.
- The Trust uses investment professionals to invest your contributions, and there is no tax on the earnings.
- Once you retire, the Trust functions as a medical premium and expense reimbursement plan, and the benefits are totally tax-free.
- The Trust is similar in many ways to your retirement plan; the longer you work, the greater your benefit will be.
How To Join
- Any California PORAC member association may choose to join the Trust as a bargaining unit (through collective bargaining). No individual employee can join the trust.
- Unions and employers must negotiate a set contribution rate.
- As of January 2021, Police and Fire associations in all states are eligible to participate.
Eligibility
Eligibility for monthly benefits is determined by:
- Earning five years of active service (10 years for employees hired after their association joined the Trust)
- Having contributions made to the Trust on your behalf for all years of active service
- Attaining age 55
- Ceasing employment with any participating group in the Plan
