Medical Trust Plan

How the Trust Works

Members contribute a set portion of each paycheck (currently $30) to the Trust Fund. These contributions continue until the Member reaches, at least, 25% of the maximum vesting amount in effect when they join the Trust. The maximum vesting amount (currently $20,800) is determined by the Trustees based on data provided by a professional actuary. The Trustees periodically adjust the maximum vesting amount to assure that the Fund keeps pace with inflation. The adjusted maximum vesting amount applies to Members who join the Trust after the adjusted amount takes effect. The Trustees combine the contributions of all members and, with professional guidance, invest the funds. The Trustees establish the maximum annual benefit amount based on the number of current and projected retirees and the balance of the Trust Account. When an Officer retires, their final vesting level is determined by comparing the balance in their individual account with the maximum vesting amount in effect when they joined the Trust. The retiree's monthly benefit amount is the 100% vesting benefit amount multiplied by the retiree's final vesting percentage. A benefit administrator processes claims according to the Trust documents, IRS Rules, and direction of the Trustees. Claims are reimbursed up to the retirees monthly benefit amount. The Trust is governed by IRS Code 501(c)(9). Member contributions are taxed as income, but benefits paid are non-taxable. Examples of benefits are compensation for actual expenses such as medical, dental, and vision insurance premiums, deductibles, and co-payments. In addition, medical, dental, and vision expenses not covered by insurance may also be covered.

Who Can Receive Benefits From the Plan?
Benefits may become payable to retired MPOA members, their spouses. Surviving spouses may also qualify for benefits. The plan includes rules which require any benefits to be vested before they are payable (25% of $20,800).
How Do I Become a Participant in the Plan?
By signing up. There will be sign up forms available for the March 21 meeting or by contacting us.
How Much Must I Contribute?
Minimum contribution is currently $30 per pay period. A participant may contribute more than the minimum up until full 100% vesting is achieved (or total contributions of $20,800). No contributions may be made after full vesting is reached. Participants can contribute a higher amount to reach 100% at a faster rate at any time.
Can I Enroll Late and What Does It Cost?
Yes. Members who declined/opted out of the plan may join the plan later, subject to conditions: They must contribute at the rate in effect for new members at the time they join the plan.
Can I Stop My Contributions?
Yes, but only after you have achieved the 25% ($5,200 of $20,800) vesting level. If you choose to stop making contributions, and have not reached the 25% you forfeit money contributed. You will forfeit any contributions made and no benefits will be payable to you or your dependents.
Can I Change the Amount of My Contributions? How?
Yes. Complete the contribution amount form. They may not, however, be reduced below the minimum amount ($30) then in effect and may not continue after you have reached full vesting.
Will the Trustees Ever Change the Amount of Contributions?
Yes. The plan gives the trustees the discretion to adjust contribution levels (both minimum and maximum) if they determine the plan's fiscal position requires it. The timing and amount of any such adjustments will take into account such factors as the increase in medical inflation since the last adjustment and the plan's funded status as determined by an independent actuary. No adjustments will have the effect of reducing the level of vesting then reached by a participant.
What Is Vesting?
The plan provides that only vested benefits will be payable to participants and their dependents. Your vested percentage will be multiplied times the maximum monthly benefit then in effect to determine your maximum monthly reimbursement. In addition, your vesting percentage must be at least 25% or more. You are 0% vested until you reach the 25% level and no benefits will be payable to you or your dependents. Should you terminate employment for reasons other than becoming disabled before you reach minimum vesting, you will forfeit any contributions made and no benefits will be payable to you or your dependents. Example: 100% vested = $20,800 25% Vested Amount is $5,200 Currently a member 100% vested will get a yearly payout of $1,374.96 A member 25% vested will get a yearly payout of $343.74
What Is the Maximum Benefit?
Current retirees get $114.78 monthly, $1,374.96 yearly if they are 100% ($20,800) vested. However anyone retiree can keep receiving pass the $20,800 for their lifetime.
How Is the Maximum Benefit chosen?
The trustees' ability to do this will depend upon the plan's funded status from year to year. As fiduciaries, the trustees are responsible for investing and preserving plan assets - this includes establishing monthly maximum benefits that the trust can reasonably afford. It is intended that benefits will primarily funded from trust investment returns and not trust corpus. From time to time, the trustees will conduct an actuarial valuation to assess the plan's funded status to help them exercise their discretion.
How/when can I qualify to start receiving payout benefit?
After you reach age 50 if you have achieved at least the minimum 25% vesting and are officially retired.
Suppose I Terminate or Become Disabled Before I Retire? What Happens to My Contributions?
If your employment terminates before you become 25% vested, no benefits will be payable and you will forfeit your contributions (subject to possible reinstatement upon reemployment). If your employment terminates and you are at least 25% vested, you and your spouse will be eligible for benefits after you reach age 50.
Suppose I Die Before I Retire?
If you have achieved at least 25% vesting and been married for at least one year. If you die before you retire your spouse will be eligible for the benefit you would have been entitled to had you actually retired on the day immediately preceding your death. This benefit will become payable when you would have become age 50. If you are not survived by a spouse as described above, no benefits will be payable and your contributions will be forfeited.
If I Die After Retirement, Are Any More Benefits Provided?
No, but your surviving spouse (if any) will continue to be eligible to receive benefits equal to 100% of the benefit you were receiving prior to your death. If you are not survived by a spouse as described above, no further benefits will be payable after your death.
Suppose I Die Before Achieving Any Vesting?
If you have no surviving spouse no benefits will be payable and your contributions will be forfeited.
What Expenses Will the Plan Reimburse Me For?
The plan will reimburse eligible participants and surviving spouses, up to the vested maximum monthly benefit applicable to them (eg. vested percentage multiplied times the maximum monthly benefit) for expenses incurred for medical insurance premiums and direct expenses.
How Can I Appeal Any Denied Claims?
Your claim will be approved (in full or in part) or denied within 90 days of receipt by the trustees. This time period may be extended, but for no more than an additional 90 days if special circumstances require. If your claim is not denied within this period, it will be paid. If your claim is denied, the trustees will provide the reason(s) for the denial, reference to the particular section(s) of the plan upon which the denial is based, a description of any additional information necessary to approve the claim and an explanation of the procedure for appealing the claim. Your appeal, if any, must be submitted to the trustees within 60 days of your receipt of a denied claim.
How Are Plan Funds Invested?
The trustees have, as required by the trust document, established an investment policy that is then used by them to invest plan assets. Investment results are monitored from time to time and new investment decisions are made as appropriate.
How Do Investment Results Affect My Benefits?
All investment earnings, less expenses, increase aggregate plan assets available to pay plan benefits. Good investment results enhance the plan's funded status, increase the trustees' ability to declare maximum monthly benefits each year and reduce the need to increase contribution levels. Investment results are never credited to individual participants.
Can the Plan Be Amended or Terminated?
While the plan is intended to operate indefinitely, the trustees are empowered to amend it as appropriate. It should be noted that since the plan may well be in existence for many years into the future, it is in the best interest of participants to preserve the flexibility to react to future events not foreseeable today.