Plan assets will be held in the PORAC Retiree Medical Trust, which is a legally separate entity from PORAC, the participating Associations, or employers. The Trust is controlled and administered by a Board of Trustees, composed of peace officer members from PORAC member Associations. The Board designs the Plan, selects investment vehicles, decides on distribution options, etc. The Board has hired a professional investment manager to advise it regarding investment of Plan assets.
Federal law regulates the Trust, and the Trustees are charged with fiduciary responsibility to administer the Plan for the “exclusive benefit” of the participating employees. If the Trustees fail to do so, they are subject to civil and criminal penalties. All contributions and earnings in the Trust can be spent only on benefits and administrative expenses. It would violate federal law if the assets ever were paid to any Association, PORAC, the Trustees, or the employers.