Your Association should consider joining the PORAC Retiree Medical Trust as part of the solution to the problem of rising health care costs, and budget strains on cities and counties. The Trust is a flexible and tax-favored program available to PORAC member Associations to fund for post-retirement medical expenses, through pre-tax employer and/or employee contributions. Also, the Trust offers the advantages of pooling contributions, such as providing a lifetime1 stream of benefit payments. This differs from an individual health savings account benefit, which will terminate when the account balance reaches zero. (For details see Part E, “Tax and Pooling Advantages.”)
1 The Plan is designed to provide monthly reimbursement benefits to Eligible Retirees until death. However, this feature is not guaranteed. The Trustees reserve the right to modify, limit or terminate benefits as necessary to preserve the financial soundness of the Trust.