Dear Participants of the PORAC Retiree Medical Trust:
The Peace Officers Research Association of California (“PORAC”) established the PORAC Retiree Medical Trust (the “Trust”) to provide additional financial support to participating PORAC members during retirement. This Summary Plan Description is important for anyone whose Association has negotiated for contributions to the Trust in its MOU. By contributing to the Trust, you are pre-funding for payment of medical expenses in retirement.
The Trust is a highly tax-favored vehicle to help retirees meet the rising cost of health care. Your contributions to the Trust are not taxable income to you, and the benefit payments you will receive from the Trust during retirement will not be taxed (unlike pension benefit payments to you, which are taxed). Further, the Trust uses investment professionals to invest your contributions, and there is no tax on the earnings.
We, the Board of Trustees, are fellow peace officers, selected by the members and leadership of PORAC. We are pleased to distribute this Summary Plan Description, which is an explanation of your benefits and rights under the Medical Expense Reimbursement Plan (the “Plan”), presented in a Question-and-Answer format.
PORAC has worked diligently to establish and support this Plan, in hopes of helping PORAC members and their families to lessen the burden of retiree medical costs. We welcome your input and comments.
Best regards,
Terry A. Moore (ret.), Chico Police Officers’ Association
Chairman, Board of Trustees
PORAC Retiree Medical Trust
Summary Plan Description
Issue Date: January 1, 2022
