Examples In Action

Police Retiree Medical Trust in CaliforniaPolice

Police Retiree Medical Trust in California: An actuarial projection for this group indicates that a typical employee with a 26-year career would receive approximately $125,000 in non-taxable benefits. The actuarial projection was based on the assumption that an employee joins the force at age 27 and retires at age 53, and a monthly pre-tax contribution of $75 is made into the Retiree Medical Trust.

On the basis of these assumptions, for the $23,400 investment ($75 x 12 months x 26 years), the employee can expect a monthly non-taxable benefit in retirement of $415. And these monthly payments would be made until the beneficiary's death.