On this episode of On the Job With PORAC, PORAC President Brian Marvel and Vice President Damon Kurtz invite in RMT Chairman Terry Moore and PORAC Board Representative Tim Davis to talk about PORAC’s Retiree Medical Trust and why PORAC members should join the program.

 

About PORAC’s Retiree Medical Trust

The PORAC Retiree Medical Trust is a funding vehicle in which to deposit money while you are working, to pay for medical expenses after you retire, pursuant to the rules of the Plan. Any PORAC member association may choose, as a bargaining unit (through collective bargaining), to join the Trust. (You cannot choose to join as an individual; it must be through bargaining by your association.) Currently, we have associations participating from California, Oregon and Washington. That includes both Police and Fire. It is anticipated that we will begin to grow into additional states in 2021.

The Trust’s Medical Expense Reimbursement Plan is a financial tool that allows current employees to save money tax-free to pay for medical expenses they will incur in retirement. The Trust will invest pre-tax contributions, earn income tax-free, and after retirement, reimburse participants tax-free for covered medical expenses and health insurance premiums. Benefits are funded with regular payroll transfers and/or lump-sum transfers of sick and vacation leave. The unions and employers must negotiate a set contribution rate and must transfer the same percentage of each employee’s accrued leave for all members. An individual employee cannot elect to contribute more than what is set forth in their MOU.

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