Two Businessmen

What is a Retiree Medical Trust

How the RMT Works - A Case Study:

This is a typical example that demonstrates how an RMT is implemented. RMT benefits would begin after participants have retired, and have met the specific eligibility rules outlined in the RMT plan document.

Employer contributes $175/month per active employee.

When employees retire after age 55 with at least 10 years in RMT, they become eligible to receive reimbursements for medical expenses up to the amount of the maximum monthly "base" benefit for life.

Comparison of Planned RMT Benefit Design vs Benefits

This example yields a $340 per month starting "base" benefit with growth expectations of 3% per year to plan for potential increased medical costs

Base benefit will be adjusted (up or down) periodic basis with counsel from Actuary, when investment and/or demographic experience falls outside of a corridor of acceptable deviation from expected.