Borrowing from the principles of defined benefit pension plans, a new opportunity has emerged to enable employees within large memberships to receive lifetime retiree health benefit reimbursements (either on a collectively bargained basis or based on an employer sponsored arrangement). [Learn More]
The Retiree Medical Trust program takes advantage of the power of collective financing to provide medical reimbursement benefits out of a trust fund in a manner similar to lifetime pension benefits.
These trust programs are structured to enable financing with monthly tax deductible employee or employer (or a combination of both) funds. These funds are then used to reimburse claims for medical expenditures upon retirement.
No taxes are due on these reimbursements. The funds cannot, by law, return to the employer and must be spent on medical reimbursement benefits.