HomeMy WebLinkAboutR-11525 allowing previously contributing employees to continue participating in the Retiree Medical Trust through Peace Officers Research Association of California (PORAC)
R 11525
RESOLUTION NO. 11525 (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ALLOWING PREVIOUSLY CONTRIBUTING
EMPLOYEES TO CONTINUE PARTICIPATING IN THE RETIREE
MEDICAL TRUST THROUGH THE PEACE OFFICERS RESEARCH
ASSOCIATION OF CALIFORNIA
WHEREAS, the Peace Officers Research Association of California (PORAC) has
established an employee benefit trust called the PORAC Retiree Medical Trust (the
“Trust”), governed by the “Trust Agreement Governing the PORAC Retiree Medical Trust”
restated effective December 21, 2023, and as amended thereafter (hereafter, the “Trust
Agreement”), which is administered by a Board of Trustees (“Trustees”); and
WHEREAS, the Trust provides medical expense reimbursement benefits for retired
members of bargaining units represented by PORAC Associations, who are parties to a
bargaining agreement that requires contributions to the Trust, pursuant to the Trust’s
“Medical Expense Reimbursement Plan,” restated effective December 21, 2023 (incl.
Plan Amendment Nos. 1-21) (Dr. 11/1/21), and as amended thereafter, (hereafter, the
“Plan”); and
WHEREAS, the City of San Luis Obispo (hereafter, “Employer” or “City”) makes
contributions to the Trust on behalf of employees in the following bargaining unit: The
International Firefighters Association, Local 3523 (hereafter, “Association”) pursuant to a
Memorandum of Understanding dated December 5, 2023 (hereafter, “MOU”); and
WHEREAS, certain fulltime employees of the City, who have previously
participated in the plan as a member of the Association, but have promoted out of the
bargaining unit represented by the Association, have requested to continue participation
in the Plan through mandatory employee contributions after their promotion; and
WHEREAS, in order to comply with applicable federal tax rules, the Trust does not
allow participation in the Trust by individual employee election, but allows participation
only on a nonelective basis (see Section 4 hereof); and
WHEREAS, under the MOU, the City is required to withhold a mandatory
employee contribution for transfer to the Trust for all participating employees in the
Association.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Receipt of Documents. Employer acknowledges receipt of the Trust
Agreement of the Trust.
Resolution No. 11525 (2024 Series) Page 2
R 11525
SECTION 2. Definitions.
a) “Non-Bargaining Unit Employees” or “NBUs” means active employees of the
Employer:
i) For whom contributions were previously made to the Trust on their
behalf when they were represented by an Association; and
ii) Who are not currently in a bargaining unit due to the nature of their
position, e.g., they have promoted out of a bargaining unit into
management, or they were reassigned or hired into a non-bargaining
unit position.
b) “Association” means a labor organization allowed to participate in the Trust.
SECTION 3. Participation.
a) The Employer agrees to contribute to the Trust on behalf of all NBUs, by
adopting this Resolution, as the compensation arrangement for all NBUs
(referred to as a subscription agreement in the Trust Agreement and qualifies
as a Special Agreement under the Plan), pursuant to Article V, Section 3 of the
Trust Agreement.
b) The Trust has agreed to the participation of all NBUs of the Employer in the
Plan, pursuant to the terms of this Resolution.
SECTION 4. Contributions: Payroll and Transfer of Salary/Sick Leave.
a) The Employer shall transfer a mandatory pre-tax employee contribution to the
Trust for each and every NBU, in the same amount and on the same schedule
that the Employer is transferring for each employee in the bargaining unit
represented by the Association pursuant to the MOU between the Employer
and the Association (i.e., currently $100 semi-monthly (24 pay periods per
year)). There shall neither be an election for NBUs to opt in or out of employee
contributions, nor to determine the amount of the contribution.
b) If the rate or schedule changes for the Association members, the Employer will
contribute the changed amount on the NBUs at the same time.
c) With each payment, the Employer shall also submit employee data to identify
the amounts paid on behalf of each covered employee, and any other
information necessary for the administration of the Trust and Plan.
d) Except as otherwise stated in Sections 3 and 4 hereof, all aspects of the Plan
contributions for NBUs, including the timing, manner, and reporting of the
contributions will be determined according to the terms of the Association MOU
with the City, as amended from time to time.
Resolution No. 11525 (2024 Series) Page 3
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SECTION 5. Certification of Mandate for all NBU Employees.
a)No Individual Election. The Employer hereby certifies that mandatory employee
pre-tax contributions will be made to the Trust on behalf of all NBUs of the
Employer. There shall neither be an election for NBUs to opt in or out of
mandatory pre-tax employee contributions, nor to determine the amount of
such contribution.
b)Eligibility. The Employer hereby certifies that all NBUs reported to the Trust
meet the definition of “Employee” in Section 1.11 of the PORAC Retiree Medical
Trust Plan, as follows:
i)“Employee means an individual employed by a Participating Employer
on or after the Employee’s Effective Date, who is a member of an
Association that represents public safety employees, and on whose
behalf the required Contributions are made to the Trust Fund pursuant
to a Memorandum of Understanding or Special Agreement, for all
periods of Active Service after the Effective Date. The term ‘Employee’
includes any individual who works on a part-time contract basis for any
Participating Employer.”
SECTION 6. Reporting and Audit Rules. The Employer hereby acknowledges
receipt of the Trust Agreement governing the Trust and will comply with rules set by the
Trust Office in regard to reporting and transferring the required contributions set forth
above.
a)Demographic Information Report and Updates.
i)Initial Report. Employer shall electronically provide an initial report of
demographic information, which shall include: Social Security Number
(or unique identifier), first name, last name, gender, address (city, state,
zip code), contact information (email address and phone number), birth
dates, and hire dates, for all participating employees, including NBUs.
ii)Updates. Employer shall send updates to this information to the Trust
Office whenever the Employer has notice of changes to the information.
Employer shall also provide notice to the Trust when an employee is
promoted, or otherwise becomes an NBU, and when an NBU is
terminated.
iii)Deadline. The Employer shall send the Demographic Information Report
under this Section 6.a within 15 days of the first contribution to the Trust.
The Employer shall send updates to this report within 15 days of receipt
of the updates to the information included in the Demographic
Information Report or within 15 days of a promotion, transfer, or
termination. This Demographic Information Report shall be furnished in
the format that the Trust Office requests.
Resolution No. 11525 (2024 Series) Page 4
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b)Regular Contribution Report. The Employer shall electronically submit to the
Trust Office a Regular Contribution Report with each transfer of contributions
to the Trust. This Regular Contribution Report shall be sent in the format
requested by the Trust, and received by the Trust Office within five (5) days of
each receipt of contribution funds. This Regular Contribution Report shall
include the data that the Trust Office requests concerning employees and
contributions, including at least:
i)Leave funds. Identify the employees receiving a transfer of leave funds
to the Trust and the amount received on behalf of each employee; and
ii)Promotions and Terminations. The reason that an employee was
dropped off of the Regular Contribution Report, e.g., involuntary
termination, voluntary termination, retirement, resignation, leave without
pay, and the date that an employee was promoted, became an NBU, or
terminated employment.
c)Failure to Provide Reports. The Employer hereby acknowledges that the Trust
may refuse to accept contributions or take other legally permissible actions with
respect to the Employer’s contributions and employees’ benefits from the Trust
if the Employer does not comply with the Trust Office’s rules regarding the
aforementioned contribution reports.
d)Payroll Audit. The Employer hereby acknowledges receipt of the Trust
Agreement governing the Trust and will cooperate with the Trust in allowing a
payroll audit for the purpose of ascertaining if the proper amount of
contributions have been made. The Employer shall timely cooperate with the
Trust Office’s audit rules and any requests made or authorized by the Trust’s
auditor.
SECTION 7. Effective Date. The effective date of this Resolution is December 21,
2023. Each eligible NBU will be required to make a single payment reflecting the sum of
the contributions that would have been made to the Trust on behalf of the NBU during the
2024 calendar year. If contributions are made retroactive to the effective date of the MOU,
the Trust may charge for lost interest through loss of the appropriate number of Active
Service Units.
SECTION 8. Notices. Any notice related to this Resolution shall be sent to the Trust
at: PORAC Retiree Medical Trust c/o Vimly Benefit Solutions Inc, PO Box 6, Mukilteo, WA
98275, and to the Employer, c/o: Nickole Domini at the following address: 990 Palm
Street, San Luis Obispo, CA 93401.
Resolution No. 11525 (2024 Series) Page 5
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SECTION 9. Termination. This Resolution shall remain in effect unless terminated
by the Council. The Resolution will automatically terminate effective on the termination
date of contributions to the Trust pursuant a termination of contributions in the
Memorandum of Understanding between the Employer and the Association. The
Employer acknowledges that the Trust may terminate coverage effective the first of any
month after two months of the Employer’s failure to remit contributions when due. Written
notice of termination must be received by the other party at least ten (10) days prior to
the first day of the month in which coverage is to be terminated, or contributions will be
due for that month.
SECTION 10. Change of Law. This Resolution will be modified as necessary in
order to ensure that contributions will not be treated as taxable income, according to the
Internal Revenue Code and guidance pursuant thereto (e.g., PLR 201345020) concerning
participation in employee benefit plans.
Upon motion of Council Member Francis, seconded by Council Member
Shoresman, and on the following roll call vote:
AYES: Council Member Francis, Marx, Shoresman, Vice Mayor Pease, and
Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 15th day of October 2024.
___________________________
Mayor Erica A. Stewart
ATTEST:
__________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
___________________________
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
__________________________
Teresa Purrington, City Clerk
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TRUST AGREEMENT
GOVERNING THE
PORAC
RETIREE MEDICAL TRUST
Restated Effective January 1, 2022
(Dr. 11/11/21 including Ams. 1-3)
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TABLE OF CONTENTS
SECTION 1. DECLARATION OF TRUST ................................................................................1
1.1 Name. .......................................................................................................................1
1.2 Purpose. ....................................................................................................................1
1.3 Duration of the Trust. ...............................................................................................2
1.4 Term of Trust Agreement. .......................................................................................2
SECTION 2. DEFINITIONS ........................................................................................................2
2.1 “Beneficiary” ...........................................................................................................2
2.2 “Benefit Plan” or “Employee Welfare Benefit Plan” ..............................................2
2.3 “Collective bargaining agreement” ..........................................................................2
2.4 “Contributions” ........................................................................................................2
2.5 “Participating Employee” ........................................................................................2
2.6 “Participating Employer” .........................................................................................2
2.7 “Participating labor organization” ...........................................................................3
2.8 “Related trust fund” .................................................................................................3
2.9 “Signatory parties”. ..................................................................................................3
2.10 “Subscription agreement” ........................................................................................3
2.11 “Trustees” or “Board of Trustees” ...........................................................................3
2.12 “Trust” or “Trust Fund” ...........................................................................................3
2.13 “Welfare benefits” or “employee welfare benefits” ................................................3
SECTION 3. THE TRUSTEES ....................................................................................................3
3.1 The Board of Trustees. .............................................................................................3
3.2 Statutory Capacities of Trustees. .............................................................................3
3.3 Agents for Service of Process. .................................................................................3
3.4 Number and Term of Trustees. ................................................................................4
3.5 Requirement to be a Participant in the Trust. ..........................................................4
3.6 Appointment of Successor Trustees.........................................................................4
3.7 Individuals Disqualified from Serving as Trustees. .................................................4
3.8 Acceptance of Appointment by Trustees. ................................................................4
3.9 Term of Appointment. .............................................................................................4
3.10 Termination of Appointment by Appointing Entity. ...............................................4
3.11 Termination of Appointment for Failure to Attend Meetings. ................................5
3.12 Termination of Appointment for Conviction of a Crime. ........................................5
3.13 Termination of Appointment for Mental Incapacity. ...............................................5
3.14 Resignation of Appointment. ...................................................................................5
3.15 Vacancies. ................................................................................................................5
3.16 Return of Books and Records. .................................................................................5
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SECTION 4. TRUST FUND ADMINISTRATION ....................................................................6
4.1 Manner of Voting. ....................................................................................................6
4.2 Constitution of a Quorum. .......................................................................................6
4.3 Motions. ...................................................................................................................6
4.4 Prohibition of Proxies. .............................................................................................6
4.5 Regular Meetings. ....................................................................................................6
4.6 Special Meetings. .....................................................................................................6
4.7 Action Without a Formal Meeting. ..........................................................................6
4.8 Arbitration of Deadlocked Issues. ............................................................................7
4.9 Election of Chairman and Secretary. .......................................................................7
4.10 Duties of Chairman and Secretary. ..........................................................................7
4.11 Authorized Signatures. .............................................................................................8
4.12 Compensation and Expenses....................................................................................8
4.13 Benefits to Trustees Not Prohibited. ........................................................................8
SECTION 5. PARTICIPATION ..................................................................................................8
5.1 Bargaining Units Entitled to Participate. .................................................................8
5.2 Other Bargaining Units. ...........................................................................................9
5.3 Non-Bargaining Unit Employees of Participating Employers.................................9
5.4 Unauthorized Participation. .....................................................................................9
SECTION 6. TRUSTEE RESPONSIBILITES .........................................................................10
6.1 General Duty – Receipt of Contributions and Creation and Administration of
Benefit Plans. .........................................................................................................10
6.2 Compliance with Internal Revenue Code. .............................................................10
6.3 Basis of Payments To and From Trust Fund. ........................................................10
6.4 Application of Trust Fund Assets. .........................................................................10
6.5 Fiduciary Standards. ..............................................................................................10
6.6 Deposits..................................................................................................................11
6.7 Investments. ...........................................................................................................11
6.8 Specifically Permitted Investments........................................................................11
6.9 Title to Investments and Other Assets. ..................................................................11
6.10 Fidelity Bond. ........................................................................................................12
6.11 Records. .................................................................................................................12
6.12 Annual Audit. .........................................................................................................12
6.13 Plan Description. ....................................................................................................12
6.14 Annual Report. .......................................................................................................13
6.15 Documents to be Examined or Furnished. .............................................................13
6.16 Procedure for Review of Denied Benefit Claims. .................................................13
6.17 Privacy Rule. ..........................................................................................................13
6.18 Whistleblower Policy. ............................................................................................14
SECTION 7. ALLOCATION OR DELEGATION OF TRUSTEE RESPONSIBILITIES .14
7.1 Allocation of Responsibilities to Committees. ......................................................14
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7.2 Delegation of Investment Responsibilities. ...........................................................14
7.3 Delegation of Other Responsibilities. ....................................................................15
7.4 Review of Performance..........................................................................................15
SECTION 8. TRUSTEE POWERS............................................................................................15
8.1 General Powers. .....................................................................................................15
8.2 Specific Powers Discretionary. ..............................................................................15
8.3 Benefit Plans Currently Being Provided. ...............................................................16
8.4 Additional Benefit Plans. .......................................................................................16
8.5 Design of the Benefit Plans....................................................................................16
8.6 Means of Providing Benefits. ................................................................................16
8.7 Facility of Payment. ...............................................................................................16
8.8 Self Payments by Employees. ................................................................................17
8.9 Administrative Agent. ............................................................................................17
8.10 Banking Services. ..................................................................................................17
8.11 Other Professional and Non-Professional Help. ....................................................17
8.12 Obtaining of Necessary Premises, Equipment and Supplies. ................................18
8.13 Insurance. ...............................................................................................................18
8.14 Borrowing Money. .................................................................................................18
8.15 Reserve Funds. .......................................................................................................18
8.16 Payment of Taxes. ..................................................................................................18
8.17 Refunds of Contributions Erroneously Paid. .........................................................18
8.18 Prosecution of Legal Actions or Claims. ...............................................................19
8.19 Defense of Legal Actions or Claims. .....................................................................19
8.20 Compromise of Legal Actions or Claims. .............................................................19
8.21 Penalties for False or Withheld Information. .........................................................19
8.22 Correction of Errors. ..............................................................................................19
8.23 Subscription Agreements. ......................................................................................20
8.24 Participating in Certain Non-pPofit Organizations. ...............................................20
8.25 Participation in Non-Profit Educational Organizations. ........................................20
8.26 Reciprocity. ............................................................................................................20
8.27 Coordinated Administration...................................................................................21
8.28 Mergers. .................................................................................................................21
8.29 Interpretation and Application of Documents........................................................21
SECTION 9. CONTRIBUTIONS AND COLLECTIONS.......................................................21
9.1 Contribution Reporting Forms. ..............................................................................21
9.2 Contribution Due Date. ..........................................................................................21
9.3 Delinquent Contributions. ......................................................................................21
9.4 Audit of Employer Books and Records. ................................................................22
9.5 Protection of Employees in Cases of Employer Delinquency. ..............................22
9.6 Coordination with Provisions in Collective Bargaining Agreements. ...................22
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SECTION 10. CLAIMS AND APPEAL PROCEDURES .......................................................22
10.1 Procedures to be Followed. ....................................................................................22
10.2 Exhaustion of Administrative Remedies. ..............................................................23
SECTION 11. LIMITATIONS ...................................................................................................23
11.1 Liabilities and Debts of Trust Fund. ......................................................................23
11.2 Liabilities and Debts of Participating Parties.........................................................23
11.3 Personal Liabilities of Trustees. .............................................................................23
11.4 Judgments Against Trust Fund. .............................................................................24
11.5 Participating Parties’ Rights. .................................................................................24
11.6 Cessation of Participation. .....................................................................................24
11.7 Protection of Trust Fund, Contributions, and Benefits. .........................................24
11.8 Reliance Upon Written Documents. ......................................................................24
11.9 Agents of Trust Fund. ............................................................................................25
SECTION 12. MISCELLANEOUS ...........................................................................................25
12.1 Trust Fund Offices. ................................................................................................25
12.2 Applicable Laws and Regulations. ........................................................................25
12.3 Service in More than One Fiduciary Capacity. ......................................................25
12.4 Notices. ..................................................................................................................25
12.5 Severability. ...........................................................................................................26
12.6 Titles and Words. ...................................................................................................26
SECTION 13. AMENDMENTS AND TERMINATION .........................................................26
13.1 Amendments. .........................................................................................................26
13.2 Termination. ...........................................................................................................26
13.3 Allocation Upon Termination. ...............................................................................26
EXECUTION ...............................................................................................................................27
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TRUST AGREEMENT
GOVERNING THE
PORAC RETIREE MEDICAL TRUST
PREAMBLE
WHEREAS the Peace Officers Research Association of California (“PORAC”) wishes to
create an employee welfare benefit trust fund to hold contributions for a post-retirement medical
trust fund for retirees from bargaining units represented by PORAC member associations; and
WHEREAS the PORAC seeks to grant administration of the trust fund to a Board of
Trustees as set forth in this Trust Agreement; and
WHEREAS, the signatory parties adopted the “Trust Agreement Governing the PORAC
Retiree Medical Trust”, effective June 1, 2008; and
WHEREAS, PORAC and the Board of Trustees subsequently amended the Trust
Agreement in Amendments No. 1-3.
NOW, THEREFORE, the Board of Trustees does hereby adopt this restated Trust Agreement
governing the PORAC Retiree Medical Trust effective January 1, 2022.
SECTION 1. DECLARATION OF TRUST
1.1 Name .
The signatory parties hereby declare the establishment of a Trust Fund, named the
PORAC Retiree Medical Trust
The Trustees may hold property, enter into contracts, and in all matters act in behalf of the
Trust Fund in such name.
1.2 Purpose .
The purpose of the Trust Fund is to provide an entity to which contributions from
participating employers, participating labor organizations, and participating employees can be
paid, and through which the Trustees can create and administer one or more employee welfare
benefit plans for the participating employees on whose behalf the contributions have been paid,
and their beneficiaries.
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1.3 Duration of the Trust .
The Trust Fund shall continue in existence on an indefinite basis, contemporaneously with
the terms of this Trust Agreement.
1.4 Term of Trust Agreement .
This Trust Agreement shall be effective as of January 1, 2022, and shall continue
indefinitely until such time as it may be terminated in accordance with the provisions of Section
13 hereof.
SECTION 2. DEFINITIONS
The following definitions shall govern this Trust Agreement:
2.1 “Beneficiary” – any participating employee, spouse (or domestic partner per
applicable law) or child (as defined in Internal Revenue Code Section 152(f)(1)) of a
participating employee or surviving spouse, surviving domestic partner or surviving child
of a participating employee, who is entitled to benefits, as define d in a benefit plan .
2.2 “Benefit Plan” or “Employee Welfare Benefit Plan ” – any lawful employee
welfare benefit plan created and administered by the Trustees .
2.3 “Collective bargaining agreement” – a written agreement such as a
Memorandum of Understanding betw een a participating employer and a participating
labor organization and any supplement, amendment, continuation, or renewal thereof, by
the terms of which the employer or its employees are obligated to make contributions for
the types of benefit plans admi nistered by the Trustees.
2.4 “Contributions” – the payments required of a participating employer, or of
participating employees, pursuant to the terms of a collective bargaining agreement, or
special agreement, for the purpose of providing employee welfare benefits to the
employees covered by said agreements and their beneficiaries, including the self -
payments made by participating employees pursuant to any self -payment rules adopted
by the Trustees.
2.5 “Participating Employee ” – any individual employe d by a participating employer
who is covered by a collective bargaining agreement, or special agreement, and for whom
contributions are made to the Trust Fund, and any individual who may have been so
employed but is subsequently laid off, terminated, or re tired.
2.6 “Participating Employer” - any public employer that is party to a collective
bargaining agreement and that satisfies the requirements of Section 5 hereof.
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2.7 “Participating labor organization ” – the labor organizations named in Section
5 hereof and any other lawful labor organizations (also known as Associations) that
represent employees in collective bargaining with employers and that satisfy the
requirements of Section 5 hereof.
2.8 “Related trust fund ” – any employee welfare benefit trust fund, other than this
Trust Fund, to which participating employers make contributions as required by a
collective bargaining agreement with participating labor organizations.
2.9 “Signatory parties” – the parties who have created this Trust Agreement and
whose signature s appear on the last page hereof (or their successors).
2.10 “Subscription agreement” – a written agreement by which a labor organization
or participating employer acknowledges its obligation to make contributions to the Trust
Fund and subscribes to the terms and provisions of this Trust Agreement.
2.11 “Trustees” or “Board of Trustees” – the Trustees of the Trust Fund and their
successors.
2.12 “Trust” or “Trust Fund” – the entity created by this Trust Agreement, and all
property and money held by such entity, including all contract rights and records.
2.13 “Welfare benefits” or “employee welfare benefits” – the benefits provided in an
employee welfare benefit plan.
SECTION 3. THE TRUSTEES
3.1 The Board of Trustees .
The Trust Fund and the employee welfare benefit plans shall be administered by a Board
of Trustees.
3.2 Statutory Capacities of Trustees .
For purposes of complying with the various provisions of the Employee Retirement Income
Security Act of 1974, the Trustees shall be considered as “named fiduciaries,” “fiduciaries,” and
the “plan administrator,” as those terms are used in the Act.
3.3 Agents for Service of Process .
Each Trustee shall be considered as an agent of the Trust Fund for the purpose of accepting
service of legal process; provided that the Trustees may designate their administrative agent, or
another person, as agent of the Trust Fund for this purpose.
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3.4 Number and Term of Trustees .
(a) Number and Election. There shall be five Trustees, one elected from each of the
four Regions of PORAC, if available, and one appointed by the President of PORAC. If
there is a PORAC Region without a PORAC member Association participating in the
Trust, then the President of PORAC shall appoint a Trustee from that Region to fill the
vacancy, until the end of the term pursuant to 4b hereof. Elections and appointments shall
be conducted according to the PORAC Bylaws.
(b) Term. The term of a Trustee shall be for two years, beginning on January 1
following the PORAC convention at which the Trustee was appointed or elected.
3.5 Requirement to be a Participant in the Trust .
Subject to Section 3.4(a), each person elected as a Trustee must be a participant in the Trust
(or have retired from a participating association that is currently participating in the Trust). All
Trustees must be either active or retired members of PORAC. Active employees shall be non-
management employees. Generally, non-management employees are employees below the rank
of commander. The Trustees shall have the discretion to determine if an e mployee qualifies as a
non-management employee.
3.6 Appointment of Successor Trustees .
In the event of the termination of appointment, resignation, or death of a Trustee, a
successor Trustee shall be selected according to PORAC Bylaws for filling a vacancy on a PORAC
Board.
3.7 Individuals Disqualified from Serving as Trustees .
No individual who has been convicted of any of the crimes listed in Section 411(a) of the
Employee Retirement Income Security Act of 1974 shall serve as a Trustee during the period of
disqualification specified in the statute.
3.8 Acceptance of Appointment by Trustees .
Each Trustee shall sign a document accepting his position as Trustee and agreeing to abide
by the terms and provisions of this Trust Agreement. Alternatively, acceptance will be deemed to
occur by attendance at two Trustee meetings.
3.9 Term of Appointment .
Each Trustee shall serve until termination of appointment, resignation, or death.
3.10 Termination of Appointment by Appointing Entity .
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The appointment of a Trustee may be terminated at any time by the entity which originally
made the appointment, according to such entity’s internal rules, procedures, or practices.
The termination of a Trustee’s appointment shall be effective upon the termination date
specified in a written notice of termination, addressed to the Chairman and Secretary of the
Trustees, prepared by the appointing entity.
3.11 Termination of Appointment for Failure to Attend Meetings .
The appointment of a Trustee shall be automatically terminated if such Trustee fails to
attend three (3) consecutive meetings of the Trustees, without being excused from attendance by
specific action of the remaining Trustees noted in the minutes.
3.12 Termination of Appointment for Conviction of a Crime .
The appointment of a Trustee shall be automatically terminated if such Trustee is convicted
of any of the crimes listed in Section 411(a) of the Employee Retirement Income Security Act of
1974.
3.13 Termination of Appointment for Mental Incapacity .
The appointment of a Trustee shall be automatically terminated if such Trustee is declared
mentally incompetent by court decree.
3.14 Resignation of Appointment .
A Trustee may resign his appointment at any time subject to applicable law. Such
resignation shall be effective upon the resignation date specified in a written notice of resignation
addressed to the Chairman and Secretary of the Trustees.
3.15 Vacancies .
No vacancy in the position of Trustee shall impair the power of the remaining Trustees to
administer the affairs of the Trust Fund so long as a quorum exists as specified in Section 4.2
hereof.
3.16 Return of Books and Records .
In the event of the termination of appointment, resignation, or death of a Trustee, the
Trustee (or his legal guardian, heirs, or personal representative) shall, upon the request of the
Chairman or the Secretary of the Trustees, forthwith turn over to the Chairman or Secretary any
and all records, books, documents, monies, and other property in the possession of the Trustee, or
under his control, that belong to the Trust Fund or that were received by him in his capacity as
Trustee.
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SECTION 4. TRUST FUND ADMINISTRATION
4.1 Manner of Voting .
Any action to be taken by the Trustees shall be determined by majority vote of the total
number of Trustees in attendance at the meeting, with abstentions deemed not to be votes.
4.2 Constitution of a Quorum .
To constitute a valid regular or special meeting of the Trustees, a quorum must be present.
A quorum exists if there are present at a meeting a majority of the number of Trustee positions
pursuant to Section 3.4 hereof, even if all positions are not filled.
4.3 Motions .
Any Trustee, including the Chairman or Secretary, may offer or second any motion or
resolution presented for the Trustees’ consideration.
4.4 Prohibition of Proxies .
To encourage full attendance at meetings of the Trustees and due consideration of the
matters being voted upon, there shall be no proxies. A Trustee must be present in person, or by
telephonic conference, to cast a vote.
4.5 Regular Meetings .
The Trustees shall hold regular periodic meetings consistent with the needs of Trust Fund
business, provided that there shall be at least two (2) regular meetings held during each calendar
year. The Trustees shall determine the time and place of all such meetings.
4.6 Special Meetings .
Either the Chairman or the Secretary or any two (2) Trustees may call a special meeting of
the Trustees by giving written notice to all the other Trustees of the time and place of such meeting
at least ten (10) days before the date set for the meeting, provided that ten (10) days’ advance
notice shall not be necessary if all Trustees are agreeable to an earlier meeting.
4.7 Action Without a Formal Meeting .
The Trustees may take action without a formal meeting by means of (a) a conference
telephone call, arranged by the Secretary or the administrative agent, in which all Trustees
participate; (b) the presentation of a written motion or resolution sent to all Trustees by the
Secretary or the administrative agent and the subsequent obtaining of Trustee votes on the motion
or resolution in telephone calls placed to each Trustee by the Secretary or the administrative agent;
or (c) the presentation of a written motion or resolution sent to all Trustees by the Secretary or the
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administrative agent and the subsequent obtaining of Trustee votes on the motion or resolution in
letters sent by each Trustee to the Secretary or the administrative agent.
Any such action shall be reported in the minutes of the next formal meeting.
4.8 Arbitration of Deadlocked Issues .
In the event the Trustees should deadlock on any matter submitted for their concurrence,
the dispute may be referred by either group of Trustees to an impartial arbitrator in accordance
with the labor arbitration rules of the American Arbitration Association. A deadlock shall be
deemed to occur when there is a tie vote on any motion before the Trustees.
The Trustees shall attempt to agree on the joint submission of a statement of the issue in
dispute. However, if the Trustees cannot jointly agree upon such a statement, each group of
Trustees shall submit to the arbitrator, in writing, its version of the issue in dispute. As part of his
award, the arbitrator shall state his determination as to the exact issue.
The expenses of any such arbitration, including any court proceedings relating thereto, the
fee of the arbitrator, and the reasonable attorney and witness fees of the parties shall be chargeable
to the Trust Fund.
The decision and award of the arbitrator shall be final and binding upon the Trustees and
upon all parties whose interests are affected thereby.
The procedure specified in this Section shall be the sole and exclusive procedure for the
resolution of deadlocked issues.
4.9 Election of Chai rman and Secretary .
The Trustees shall elect one of the Trustees as Chairman and one of the Trustees as
Secretary.
The Chairman and the Secretary shall each hold office indefinitely so long as the person is
a Trustee, provided that, when a particular Chairman or Secretary has held office for two (2) years
or at any time thereafter, any Trustee may obtain, on request, a new election of that officer.
A Chairman or Secretary may resign his office at any time. Such resignation shall be
effective upon the resignation date specified in a written notice of resignation addressed to the
remaining Trustees. In case of the resignation, death, or termination of appointment of either the
Chairman or the Secretary, there shall be a new election of both offices.
4.10 Duties of Chairman and Secretary .
The Chairman shall chair the meetings of the Trustees, shall appoint all committees, and
shall carry out such other duties as the Trustees may assign to him.
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The Secretary, in the absence of the Chairman, shall act in the place of the Chairman and
perform the Chairman’s duties. The Secretary shall also advise the Trustees as to all
correspondence and financial reports pertaining to the Trust Fund and shall keep minutes or
records of all meetings, proceedings, and actions of the Trustees, provided that these particular
responsibilities may be delegated to the administrative agent or to the other of the professional or
non-professional help retained by the Trustees.
4.11 Authorized Signatures .
The Chairman and the Secretary or any two authorized Trustees shall sign all negotiable
instruments, certificates, contracts, government reports, and other legal documents on behalf of
the Trust Fund, provided that the authority for signing negotiable instruments may be delegated to
the administrative agent, corporate trustee (if any), depository bank, or custodian bank. All
persons doing business with the Trust Fund may rely on such signatures.
If the Trust Fund issues benefit checks to participating employees or their beneficiaries,
the signatures of the Chairman and Secretary may be affixed thereto by a facsimile signature
device, under safeguards determined by the Trustees.
4.12 Compensation and Expenses .
No Trustee shall receive any compensation from the Trust Fund for services as a Trustee
except as may be allowed under the Employee Retirement Income Security Act of 1974, and as
may be authorized by the Trustees.
Each Trustee shall be reimbursed out of the Trust Fund for all expenses properly and
actually incurred by him in the administration of the Trust Fund.
The Trustees shall establish the conditions for the payment of compensation (if any) and
for the reimbursement of expenses.
4.13 Benefits to Trustees Not Prohibited .
Nothing in this Trust Agreement shall prohibit a Trustee from receiving any benefits under
the terms of a benefit plan, if he is otherwise eligible for the same as a participating employee or
as a beneficiary of a participating employee.
SECTION 5. PARTICIPATION
5.1 Bargaining Units Entitled to Participate .
The following labor organizations (or their successors), and the employees in the
bargaining units represented by such labor organizations, shall be allowed to participate in the
Trust Fund:
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Member Associations of PORAC
5.2 Other Bargaining Units .
Subject to approval by the Board of Directors of PORAC, the Trustees shall have the
authority to permit labor organizations (other than those specified above), and the employees in a
bargaining unit covered by a collective bargaining agreement, to participate in the Trust Fund.
The participation of such bargaining units shall be entirely discretionary with the Trustees
and shall be subject to whatever terms and conditions they may impose.
The Trustees have the authority to decline or terminate the participation of a particular
bargaining unit if (a) the labor organization and the employer fail to provide the Trustees with a
copy of their collective bargaining agreement; (b) the language of the contribution provisions in
the collective bargaining agreement does not meet the requirements established by the Trustees (if
any); (c) the labor organization fails to submit a subscription agreement binding it to this Trust
Agreement, if required; (d) the negotiated contribution rate is lesser, or greater, than the
contribution rate supporting a particular benefit plan then being administered by the Trustees,
provided that the Trustees, in their discretion, may accept the different contribution rate and
establish different eligibility rules or benefit formulas for the employees affected; or (e) there exist
other facts and circumstances that, in the Trustees’ discretion, justify a declination or termination
of participation.
5.3 Non -Bargaining Unit Employees of Participating Employers .
The Trustees shall have the authority to enter into subscription agreements directly with
participating employers, who are contributing for their bargaining unit employees, by the terms of
which such an employer agrees to make contributions to the Trust Fund so that the non-bargaining
unit employees of the employer can be covered by the benefit plans provided through the Trust
Fund.
The acceptance of such subscription agreements shall be entirely discretionary with the
Trustees and shall be subject to applicable law and whatever terms and conditions they may
impose.
5.4 Unauthorized Participation .
The only individuals who shall be entitled to participate in and receive benefits from the
Trust Fund shall be those employees who are within the bargaining units described in Sections 1
and 2 or who are within the group described in Section 3 above. It is expected that participating
employers will submit contributions only on behalf of such employees. The receipt by the Trust
Fund of contributions which may be submitted on behalf of individuals who are not eligible to
participate shall not estop the Trustees from declining or terminating the participation of such
individuals nor shall it constitute a waiver of any of the provisions of this Section or of the benefit
plans.
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SECTION 6. TRUSTEE RESPONSIBILITES
6.1 General Duty – R eceipt of Contributions and Creation and Administration
of Benefit Plans .
It shall be the general duty of the Trustees to receive the contributions from participating
employers and the contributions from participating employees (if any) and any other income or
assets that they may receive and, with such, to create and administer one or more employee welfare
benefit plans for the participating employees and their beneficiaries.
Additionally, the Trustees shall have the specific duties set forth in this Trust Agreement
and such other duties as are imposed upon them by the Employee Retirement Income Security Act
of 1974 and other applicable laws.
6.2 Compliance with Internal Revenue Code .
The Trustees shall administer the Trust Fund and the benefit plans so that, to the extent
allowed in the Internal Revenue Code, employer contributions are tax deductible, the Trust Fund
is tax exempt, and the value of the employee welfare benefits is excludable from the recipients’
taxable income.
6.3 Basis of Payments To and F rom Trust Fund .
The basis on which contributions of participating employers and contributions of
participating employees (if any) are made shall be as specified in the underlying collective
bargaining agreement or subscription agreement. The basis on which benefits are paid out of the
Trust Fund shall be as specified in the employee welfare benefits plans.
6.4 Application of Trust Fund Assets .
As required by Section 403(c)(1) of the Employee Retirement Income Security Act of
1974, the assets of the Trust Fund shall never inure to the benefit of any participating employer
and shall be held for the exclusive purposes of providing benefits to participating employees and
their beneficiaries and defraying reasonable expenses of administering the plan.
6.5 Fiduciar y Standards .
As required by Section 404(a)(1)(A) and (B) of the Employee Retirement Income Security
Act of 1974, the Trustees shall discharge their duties and administer the Trust Fund assets solely
in the interest of the participating employees and their beneficiaries and for the exclusive purpose
of (a) providing benefits to participating employees and their beneficiaries and (b) defraying
reasonable expenses of benefit plan administration.
In carrying out the duties, the Trustees shall act with the care, skill, prudence, and diligence
under the circumstances then prevailing that a prudent man, acting in a like capacity and familiar
with such matters, would use in the conduct of an enterprise of a like character and with like aims.
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6.6 Deposits .
The contributions or any other monies which the Trustees may receive shall be deposited
in one or more banks or similar financial institutions supervised by the United States or a state,
pending the allocation of such monies for the payment of current benefits and expenses or for
investment. Such monies may be commingled, on a temporary basis, with monies belonging to
other related trust funds.
6.7 Investments .
The Trustees shall invest all contributions or other monies not required for the payment of
current benefits and expenses. The Trustees may invest and reinvest in bank accounts, savings
and loan accounts, securities, mortgages, deeds of trust, notes, commercial paper, real estate,
insurance contracts, and in such other property, real, personal, or mixed, as they deem prudent
provided that, in making of investments, the Trustees shall diversify such investments as required
by Section 404(a)(1)(C) of the Employee Retirement Income Security Act of 1974 so as to
minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.
Further, no investment shall be made which would constitute a “prohibited transaction” within the
meaning of Section 406 of such Act, provided that the Trustees shall have the authority to apply
to the Secretary of Labor for a conditional or unconditional exemption from any of the “prohibited
transaction” rules, as they may deem necessary in the administration of the Trust Fund and the
benefit plans.
6.8 Specifically Permitted Investments .
In the event the Trustees designate one or more banks or similar financial institutions
supervised by the United States or a state to serve as custodian of the trust assets, or as a corporate
trustee, or in another fiduciary capacity, the monies belonging to the Trust Fund may be invested
in the accounts of such bank or institution, provided that such accounts bear a reasonable interest
rate.
Further, the monies of the Trust Fund may be invested in (a) a common or collective trust
fund or pooled investment fund, maintained by a bank or trust company supervised by the United
States or a state or (b) in a pooled investment fund of an insurance company, even though such
bank, trust company, or insurance company is a party-in-interest as that terms is designated in
Section 3(14) of the Employee Retirement Income Security Act of 1974, provided that the bank,
trust company, or insurance company receives not more than reasonable compensation for
managing such an investment.
6.9 Title to Investments and Other Assets .
Title to all investments or other assets of the Trust Fund shall be maintained in the name
of the Trust Fund, provided that, for convenience in transferring stocks, bonds, or other negotiable
securities, title to such securities may be held in the name of the Trust Fund’s custodian bank or
of its nominee.
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Except as may be authorized by regulation of the Secretary of Labor, the indicia of
ownership of all investments and other assets of the Trust Fund shall not be maintained outside the
jurisdiction of the district courts of the United States.
6.10 Fidelity Bond .
The Trustees shall procure a fidelity bond in the amount required by Section 412(a) of the
Employee Retirement Income Security Act of 1974 covering each Trustee or other person who
receives, handles, disburses, or otherwise exercises custody or control of any of the funds or other
property of the Trust Fund. The cost of such bond shall be chargeable to the Trust Fund, provided
that, if such bond covers persons other than the Trustees or the employees (if any), and if there is
an additional premium for the coverage for such other persons, the additional premium shall be
chargeable to such other persons.
6.11 Records .
The Trustees shall maintain records of their administration of the Trust Fund, including
records of all receipts and disbursements, all investments purchased or sold, the texts of all benefit
plans, all employee eligibility listings, all minutes of Trustee meetings, and all correspondence.
No such record shall be destroyed except upon the specific action of the Trustees, and destruction
shall not be directed until a period of eight (8) years has elapsed from the date the record was
created.
6.12 Annual Audit .
The Trustees shall engage, on behalf of the participating employees and their beneficiaries,
an independent qualified public accountant and shall authorize such accountant to conduct an
annual financial examination of the Trust Fund, as required by Section 103(a)(3)(A) of the
Employee Retirement Income Security Act of 1974. The cost of such examination shall be
chargeable to the Trust Fund.
A statement of the results of each such examination shall be submitted to the Trustees for
their review and, further, shall be made part of the Trust Fund’s annual report.
6.13 Plan Description .
The Trustees shall prepare a plan description, a summary plan description, and any
modifications or changes in the information contained in such description, as required by Section
102 of the Employee Retirement Income Security Act of 1974.
The Trustees shall also furnish to participating employees and to each beneficiary receiving
benefits, copies of the summary plan description and copies of any modifications or changes in the
information in such description, as required by Section 104(b)(1) of such Act.
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6.14 Annual Repor t .
The Trustees shall prepare and file with the Department of Labor an annual report, as
required by Section 103 of the Employee Retirement Income Security Act of 1974. The Trustees
shall also furnish to participating employees and to each beneficiary receiving benefits portions of
the annual reports as required by Section 104(b)(3) of such Act.
6.15 Documents to be Examined or Furnished .
The Trustees shall make copies of (a) this Trust Agreement; (b) the plan description; (c) the
latest annual report; (d) the applicable collective bargaining agreement; and (e) any other contracts
or instruments under which a benefit plan is established or operated available for examination by
participating employees or their beneficiaries in the Trust Office, as required by Section 104(b)(2)
of the Employee Retirement Income Security Act of 1974.
The Trustees shall, upon written request by a participating employee or his beneficiary,
furnish to the participating employee or beneficiary a copy of (a) this Trust Agreement; (b) the
plan description; (c) the latest updated summary plan description; (d) the latest annual report;
(e) any terminal report; (f) the applicable collective bargaining agreement; and (g) any other
contracts or instruments under which a benefit plan is established or operated, as required by
Section 104(b)(4) of such Act. Such copies shall be furnished within thirty (30) days of the request.
The Trustees may impose a reasonable charge for such copies as may be allowed by regulation of
the Secretary of Labor.
6.16 Procedure for Review of Denied Benefit Claims .
The Trustees shall establish administrative procedures whereby participating employees or
their beneficiaries whose claims for benefits are denied are notified, in writing, of the reasons for
such denial and which afford such a participating employee or beneficiary a reasonable opportunity
for a full and fair review, as required by Section 503 of the Employee Retirement Income Security
Act of 1974. Such procedures shall include the hearing and appeal provisions set forth in Section
10 hereof.
6.17 Privacy Rule .
The Trustees shall provide certification to the Trust Fund that they agree to not use or
disclose Protected Health Information (“PHI”) other than as permitted or required by the Plan
document(s) or as required by the Health Insurance Portability and Accountability Act of 1996
(“HIPAA”) and its corresponding regulations titled the Standards for Privacy of Individually
Identifiable Health Information (Privacy Rule). The Trustees shall have the authority to implement
policies and procedures and take any other action that may be required in order to comply with
HIPAA and the Privacy Rule. Any omissions or oversights in the use and/or disclosure of PHI
will be resolved in accordance with the applicable law and its regulation(s).
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6.18 Whistleblower Policy .
The Trustees shall discharge their duties and administer the Trust Fund in such a manner
as to comply with Section 510 of the Employee Retirement Income Security Act of 1974,
‘Interference with Rights Protected under Act.’
SECTION 7. ALLOCATION OR DELEGATION OF TRUSTEE
RESPONSIBILITIES
7.1 Allocation of Responsibilities to Committees .
The Trustees may allocate to one or more committees of Trustees all or part of the
following responsibilities, with full Power to act: (a) the responsibility for managing the Trust
Fund investments (if not otherwise delegated to a qualified investment manager); (b) the
responsibility for reviewing and determining benefit claims of participating employees and their
beneficiaries; (c) the responsibility for conducting hearings and issuing determinations as provided
for in Section 10.2 hereof; (d) the responsibility for resolving questions or problems that may be
encountered in connection with payroll auditing activities; (e) the responsibility for resolving
questions or problems that may be encountered in connection with payroll auditing activities; (f)
the responsibility for resolving questions or problems that may be encountered in connection with
the collection of delinquent employer accounts; (g) the responsibility for resolving questions or
problems that may be encountered in connection with the day-to-day work of the administrative
agent; (h) the responsibility for reviewing the performance of the qualified investment manager (if
any), and of the other professional persons retained by the Trustees.
In the event the Trustees elect to allocate any of the stated responsibilities, they shall do so
by the adoption of a motion or resolution calling for the appointment of a committee of Trustees
and specifying the particular responsibility that is being allocated. With respect to the
responsibility that is allocated, the committee shall have all the powers of the full Board of
Trustees. Any action to be taken by the committee shall be determined according to the voting
formula contained in Section 4.1 hereof. If the committee members deadlock on any matter
submitted for their concurrence, such matter shall be referred to the full Board of Trustees fo r
review and action.
Nothing contained herein shall in any way limit the authority of the Trustees to create
additional committees for the purpose of assisting with or expediting the affairs of the Trust Fund,
provided that any such committee shall be empowered only to make recommendations with respect
to the matters referred to it.
7.2 Delegation of Investment Responsibilities .
The Trustees may delegate all or part of their responsibilities for the management of the
Trust Fund investments to one or more qualified investment managers, as that term is defined in
Section 3(38) of the Employee Retirement Income Security Act of 1974, i.e., (a) an investment
adviser registered as such under the Investment Advisers Act of 1940; (b) a bank as defined in that
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Act; or (c) an insurance company qualified to manage, acquire, or dispose of employee benefit
plan assets under the laws of more than one state.
In the event the Trustees elect to delegate investment responsibility they shall do so by the
adoption of a motion or resolution making the delegation to a designated investment manager. The
delegation shall be effective when the investment manager accepts the delegation and
acknowledges in writing his status as a fiduciary with respect to the Trust Fund.
7.3 Delegation o f Other Responsibilities .
The Trustees may delegate all or part of their responsibilities with respect to the
administration of the Trust Fund or the benefit plans (except investment responsibilities) to their
administrative agent or to any other person whom they may designate for such purpose.
In the event the Trustees elect to delegate a particular responsibility they shall do so by the
adoption of a motion or resolution making the delegation to a designated person. The delegation
shall be effective when the designated person accepts the delegation. If the delegation involves a
responsibility other than one which is ministerial in nature, the designated person shall also
acknowledge in writing his status as a fiduciary with respect to the Trust Fund.
7.4 Review of Performance .
In the event the Trustees elect to allocate or delegate Trustee responsibilities they shall
periodically review the performance of the persons to whom such responsibilities have been
allocated or delegated.
SECTION 8. TRUSTEE POWERS
8.1 General Powers .
Except as may be expressly limited by the terms of this Trust Agreement, Trustees shall
have full and exclusive authority to control and administer the Trust Fund and the employee
welfare benefit plans which they create.
The authority of the Trustees not only encompasses the specific powers recited in the
various paragraphs of this Trust Agreement but also includes the general power to do all things
and take all actions, including the expenditure of Trust Fund monies, which they may deem
necessary to carry out the purpose of this Trust Agreement. The Trustees may implement their
powers through the adoption of appropriate motions, resolutions, or administrative rules and
regulations.
8.2 Specific Powers Discretionary .
The recitation of specific powers in this Trust Agreement shall not be interpreted as
compelling the exercise of any such power. The exercise of specific powers is discretionary with
the Trustees.
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8.3 Benefit Plans Currently Being Provided .
The employee welfare benefit plan (or plans) presently being administered through this
Trust Fund is (are) described as follows:
Medical Expense Reimbursement Plan (Ef. June 1, 2008)
The Trustees shall have the authority to amend such benefit plan (or plans), or any plans
hereafter adopted, including amendments that expand, restrict, or terminate all or part of the rules
relating to eligibility for benefits, or to the amount and nature of such benefits, as they may
determine. Amendments may be made on a prospective or retroactive basis.
8.4 Additional Benefit Plans .
The Trustees shall have the authority to create and administer additional medical expense
reimbursement plans, but not including traditional health insurance plans, as may be lawful under
Section 3(1) of the Employee Retirement Income Security Act of 1974, provided that such plans
are supported by employer or employee contributions.
8.5 Design of the Benefit Plans .
The Trustees shall have the authority to determine the details of the benefit plans, including
the determination of the rules under which participating employees shall be eligible for benefits
and the nature and amount of such benefits. The Trustees shall also have the authority to determine
whether benefits shall be extended to beneficiaries of participating employees and, if so, to
determine which class or classes of beneficiaries shall be eligible for benefits, the eligibility rules
which will apply to such class or classes of beneficiaries, and the nature and amount of such
benefits. If there are different contribution rates, the Trustees may establish different eligibility
rules, or benefit formulas, for the participating employees and their beneficiaries who are affected
thereby.
8.6 Means of Providing Benefits .
The Trustees shall have the authority to provide the benefits, in whole or in part, directly
from the Trust Fund, or to contract with an insurance carrier, or other entity, to underwrite the risk
of the reimbursement benefits.
8.7 Facility of Payment .
The Trustees shall have the authority to adopt rules by the terms which benefit payments
owing to minors or incompetents may be paid instead to a person or institution providing care or
other services to such minor or incompetent, even though a legal guardianship does not exist.
Benefit payments made under any such rules shall fully discharge the Trust Fund’s obligation to
the minor or incompetent.
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8.8 Self Payments by Employees .
The Trustees shall have the authority to include provisions in the benefit plans by the terms
of which participating employees, during periods of active employment, strikes, lockouts,
employer delinquencies, leaves of absence, disabilities, layoffs, termination, or retirement may be
permitted to make contributions in their own behalf.
8.9 Administrative Agent .
The Trustees shall have the authority to retain, at the expense of the Trust Fund, one or
more administrative agents to assist the Trustees in the day-to-day administration of the Trust Fund
and the benefit plans. Such assistance may include the receipt and recording of contributions, the
processing of delinquent accounts, the preparation of employee eligibility listings, the processing
of benefit applications, the payment of benefits, the maintenance of financial records, and the
handling of routine communications.
The administrative agent may be a contract administrator or a salaried administrator. In
the event the Trustees employ a salaried administrator they shall also have the authority to employ
such additional administrative staff personnel as may be necessary.
The Trustees shall periodically review the performance of the administrative agent.
8.10 Banking Services .
The Trustees shall have the authority to retain, at the expense of the Trust Fund, one or
more banks or similar financial institutions supervised by the United States or a state, to perform
depository or custodial services, or to serve as corporate trustee or co-trustee, on behalf of the Trust
Fund.
The Trustees shall periodically review the performance of the banks which they have
retained to perform banking services.
8.11 Other Professional and Non -Professional Help .
The Trustees shall have the authority to retain, at the expense of the Trust Fund, one or
more accountants, actuaries, attorneys, employee benefit plan consultants, investment managers,
payroll auditors, and other professional or non-professional help, as they may deem necessary in
the administration of the Trust Fund and the benefit plans. Unless limited by the Employee
Retirement Income Security Act of 1974, the retention of any such professional or non-
professional help may be on a contract or salaried basis.
The Trustees shall periodically review the performance of their professional and non-
professional help.
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8.12 Obtaining of Necessary Premises, Equipment and Supplies .
The Trustees shall have the authority to purchase or lease suitable premises and equipment
and to purchase materials and supplies, at the expense of the Trust Fund, as they may deem
necessary in the administration of the Trust Fund and the benefit plans.
8.13 Insurance .
The Trustees shall have the authority to purchase policies of insurance (liability, property
damage, casualty, and errors and omissions) to protect the Trust Fund and to protect themselves
and their employees (if any) with respect to their activities on behalf of the Trust Fund as they may
deem necessary. The cost of such insurance policies shall be chargeable to the Trust Fund,
provided that, if such insurance policies cover persons other than the Trustees or their employees
(if any), and if there is an additional premium for coverage for such other persons, the additional
premium shall be chargeable to such other persons.
Any policy of errors and omissions insurance which covers the Trustees individually shall
contain a recourse clause as required by Section 410(b)(1) of the Employee Retirement Income
Security Act of 1974, provided that nothing herein shall prevent a Trustee (or an employer,
employer association, or labor organization acting on his behalf) from purchasing for the Trustee
a waiver of the recourse clause or a separate policy insuring against such recourse.
8.14 Borrowing Money .
The Trustees shall have the authority to borrow money for the Trust Fund, with or without
security, as they may deem necessary in the administration of the Trust Fund and the benefit plans.
8.15 Reserve Funds .
The Trustees shall have the authority to maintain reasonable reserve funds for future
contingencies as they may deem necessary in the administration of the Trust Fund and the benefit
plans.
8.16 Payment of Taxes .
The Trustees shall have the authority to pay, at the expense of the Trust Fund, all real and
personal taxes, and other taxes and assessments of any kind that may be lawfully levied or assessed
against the Trust Fund.
8.17 Refunds of Contributions Erroneously Paid .
The Trustees shall have the authority to adopt rules by the terms of which refunds of
contributions may be made to a participating employer or employee where the employer or
employee has paid such contributions in error, provided that employer refunds shall be made only
as permitted by Section 403(c) of the Employee Retirement Income Security Act of 1974.
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8.18 Prosecution of Legal Actions or Claims .
The Trustees shall have the authority to originate and maintain any legal actions or claims
involving potential legal actions, at the expense of the Trust Fund, as they may deem necessary in
the administration of the Trust Fund and the benefit plans. All such actions and claims shall be
prosecuted in the name of the Trust Fund or in the name of an assignee.
8.19 Defense of Legal Actions or Claims .
The Trustees shall have the authority to defend all legal actions, claims involving potential
legal actions, and investigatory proceedings initiated against the Trust Fund or against one or more
of the Trustees, former Trustees, administrative agents, or against one or more of the employees
of the Trust Fund (if any) that relate to the administration of the Trust Fund or the benefit plans.
Except as stated below, the defense of such actions, claims, and proceedings shall be at the expense
of the Trust Fund.
If the final court decree establishes personal liability on the part of specified Trustees,
administrative agents, or employees (if any) for breach of their fiduciary responsibilities, as
permitted by Section 409(a) of the Employee Retirement Income Security Act of 1974, and orders
that the specified persons are to bear the expenses of their own defense, their attorney fees shall
not be chargeable to the Trust Fund. If attorney fees and costs have already been charged to the
Trust Fund, the specified persons shall be obligated to repay the Trust Fund for the pro-rate share
of such fees and costs.
8.20 Compromise of Legal Actions or Claims .
The Trustees shall have the authority to compromise, settle, or release all legal actions or
claims involving potential legal actions, in favor of or against the Trust Fund, on such terms and
conditions as they may determine.
8.21 Penalties for False or Withheld Information .
The Trustees shall have the authority to adopt rules and regulations by the terms of which
reasonable penalties or forfeitures may be imposed upon participating employees or beneficiaries
who (a) falsify any information requested of them in the administration of the Trust Fund and the
benefit plans; or (b) fail to provide requested information within a reasonable time.
8.22 Correction of Errors .
It is recognized and acknowledged by all parties that the Trustees will provide eligibility
credits or benefits to participating employees and their beneficiaries based on Trust Fund records.
It is also recognized and acknowledged that such records could be incorrect due to (a) incomplete
records; (b) employees or beneficiaries submitting incorrect or false benefit applications; (c)
recording or computation errors by the administrative agent; (d) computer errors; or (e) other
similar circumstances. The Trustees shall have the authority to correct the Trust Fund records
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whenever errors are discovered and to terminate participation, adjust eligibility credits or benefits,
or seek the recovery of benefit overpayments, as they may determine.
8.23 Subscription Agreements .
The Trustees shall have the authority to create and distribute subscription agreements, at
the expense of the Trust Fund, by the terms of which a participating employer or labor organization
acknowledges its obligation to make contributions to the Trust Fund and subscribes to the terms
and provisions of this Trust Agreement.
8.24 Participating in Certai n Non -p P ofit Organizations .
The Trustees shall have the authority to participate in non-profit foundations, corporations,
councils, committees, or other organizations that have as their purpose (a) the alleviation of
physical or mental disease, or of other conditions or hazards that require the care or service being
paid for through the benefit plans administered by the Trustees; or (b) the improvement in the
availability of, and quality of, medical care, or of other care or service being paid for through the
benefit plans, or the reduction in the costs of such care or services. If the Trustees act to participate
in any such non-profit organization, the membership or participation fees of the organization shall
be chargeable to the Trust Fund.
Further, to the extent that such is not prohibited by the Employee Retirement Income
Security Act of 1974, the Trustees may make loans, grants, or donations to any such nonprofit
organization, in reasonable amounts, out of the uncommitted reserves of the Trust Fund.
8.25 Participation in Non -Profit Educational Organizations .
The Trustees shall have the authority to participate in non-profit foundations, corporations,
committees, or other organizations which sponsor educational programs or provide educational
materials pertaining to the administration of trust funds of this nature and of employee benefit
plans. If the Trustees act to participate in any such non-profit organization, the membership or
participation fees of the organization shall be chargeable to the Trust Fund.
The Trustees shall also have the authority to purchase educational materials and to provide
for the attendance of the Trustees, or of such of their employees (if any), as they may designate, at
educational conferences and meetings. The costs of such materials and attendance shall be
chargeable to the Trust Fund.
8.26 Reciprocity .
The Trustees shall have the authority to enter into reciprocal agreements with other Retiree
Medical Trust funds providing similar benefits to those provided through the Trust Fund, for the
exchange of eligibility credits or monies or for the payment of pro-rata benefits, in order to protect
employees who may terminate their participation in the Trust Fund and begin participation in a
reciprocal trust fund and vice versa.
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8.27 Coo rdinated Administration .
The Trustees shall have the authority to coordinate the administration of the Trust Fund
and of the benefit plans with the administration of related Retiree Medical Trust funds and benefit
plans, to such extent as they may determine.
8.28 Mergers .
It is recognized that at some time or times in the future, the Trustees may deem it in the
best interest of the Trust Fund and of the participating employers, employer associations, labor
organizations, and employees to accept the merger of another employee welfare benefit trust fund
into the Trust Fund or to merge the Trust Fund into another employee welfare benefit trust fund.
In the event that another employee welfare benefit trust fund is to be merged into the Trust
Fund, the Trustees shall have the authority to negotiate the terms of the merger, enter into an
appropriate merger agreement, and carry out the steps necessary to consummate the merger. In
the event that the Trust Fund is to be merged into another employee welfare benefit trust fund, the
Trustees shall have the authority to negotiate the terms of the merger and enter into an appropriate
merger agreement, subject to written approval from the Board of Directors of PORAC. Pursuant
to the terms of the merger agreement, the Trustees shall have authority to terminate the Trust Fund
subject to Section 13.2 hereof, and to transfer the remaining monies, assets, and liabilities to the
other trust fund.”
8.29 Interpretation and Application of Documents .
The Trustees shall have the authority to interpret and apply the provisions of this Trust
Agreement, or of the benefit plans, or of their own motions, resolutions, and administrative rules
and regulations, or of any contracts, instruments, or writings that they may have adopted or entered
into.
SECTION 9. CONTRIBUTIONS AND COLLECTIONS
9.1 Contribution Reporting Forms .
The Trustees may create and make available, at their discretion, contribution reporting
forms.
9.2 Contribution Due Date .
The Trustees shall have the authority to fix a due date for all contributions.
9.3 Delinquent Contributions .
A participating employer shall be considered to be delinquent in the payment of
contributions if it (a) fails to submit a contribution reporting form, and the contributions detailed
therein, by the close of business on the due date; or (b) fails to submit contributions on behalf of
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all the employees for whom contributions are required by the underlying collective bargaining
agreement or Special Agreement; or (c) fails to compute properly the contributions according to
the required contribution formula specified in the underlying collective bargaining agreement or
Special Agreement.
The Trustees shall undertake reasonable efforts, at the expense of the Trust Fund, to collect
known delinquent contributions and related claims.
9.4 Audit of Employer Books and Re cords .
The Trustees shall have the authority, at the expense of the Trust Fund, to audit the payroll
books and records of a Participating Employer, either directly or through a qualified public
accountant, as they may deem necessary in the administration of the Trust Fund. Such payroll
audit may be undertaken pursuant to a routine payroll audit program or on an individual basis. If
the auditor reports underreporting of more than 10% of the amount due, the Trustees may seek to
recover audit costs from the employer.
9.5 Protection of Employees in Cases of Employer Delinquency .
To protect participating employees and beneficiaries in situations where participating
employees may be denied eligibility credits or benefits because their employer is delinquent in the
payment of contributions, the Trustees shall have the authority to extend eligibility credits to such
employees or to direct the payment of benefits to them, or to their beneficiaries, in whole or in
part, as they may determine.
9.6 Coordin ation with Provisions in Collective Bargaining Agreements .
In the event the underlying collective bargaining agreement contains provisions relating to
delinquencies that specify additional remedies or obligate the delinquent employer to greater
amounts of liquidated damages, interest, or attorney fees than those set forth herein, the Trustees,
at their option, may pursue the additional remedies or impose the greater charges.
The Trustees shall not be obligated, however, to pursue the collection of delinquent
accounts through the grievance-arbitration procedures (if any) provided for in the underlying
collective bargaining agreement.
SECTION 10. CLAIMS AND APPEAL PROCEDURES
10.1 Procedures to be Followed .
The Trustees and the participating employees and their beneficiaries shall have the
authority to set claims and appeal procedures in regard to the benefit plans. Such procedures shall
be set forth in the plan(s) adopted by the Trustees, or in the related summary plan description.
Such procedures, together with any written hearing procedures adopted by the Trustees,
shall be the exclusive procedures available to a participating employee who is dissatisfied with an
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eligibility determination or benefit award, or who is otherwise adversely affected by any action of
the Trust Office.
10.2 Exhaustion of Administrative Remedies .
A Beneficiary must exhaust the Claims and Appeal Procedures adopted by the Trustees
prior to bringing an action in federal court pursuant to ERISA Section 502(a).
SECTION 11. LIMITATIONS
11.1 Liabilities and Debts of Trust Fund .
No signatory party or Trustee and no participating employer, employer association, labor
organization, employee, or beneficiary shall be responsible for the liabilities or debts of the Trust
Fund.
11.2 Liabilities and Debt s of Participating Parties .
No participating employer, employer association, or labor organization shall become
responsible by reason of their participation in the Trust Fund for the liabilities or debts of any other
participating employer, employer association, or labor organization.
Except for any obligation to make contributions to the Trust pursuant to a Special
Agreement or Subscription Agreement, a Participating Employer shall have no obligation to
provide benefits to which its employees may be entitled under a collective bargaining agreement
to the extent that those benefits are provided under a plan funded through the Trust. A Participating
Employer shall not be a fiduciary of the Trust or any employee benefit plan funded through the
Trust, and shall have no responsibility or liability for Trust investments or the income tax treatment
of Trust earnings or benefits provided under such plan.
11.3 Personal Liabilities of Trustees .
No Trustee shall incur any personal liability in connection with the administration of the
Trust Fund or the benefit plans, except for such liability that may be established in accordance
with Section 409(a) of the Employee Retirement Income Security Act of 1974.
Except as may be required by applicable provisions of such Act, no Trustee shall be held
personally liable for any breach of fiduciary responsibilities in connection with the administration
of the Trust Fund or the benefit plans where it is established (a) that the responsibilities at issue
were lawfully allocated or delegated to other Trustees or fiduciaries; or (b) that, in carrying out the
responsibilities at issue, the Trustee reasonably relied upon the advice given by the administrative
agent or by one or more of the advisers retained by the Trustees.
No Trustee shall be personally liable for a breach of fiduciary responsibilities if such breach
was committed before he became a Trustee or after he ceased to be a Trustee.
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11.4 Judgments Against Trust Fund .
Any money judgment against the Trust Fund shall be enforceable only against the Trust
Fund entity and shall not be enforceable against any Trustee or other person, unless liability against
the Trustee or other person, in his individual capacity, is established in accordance with Section
409(a) of the Employee Retirement Income Security Act of 1974.
11.5 Participating Parties’ Rights .
Except as specifically provided for in this Trust Agreement or in the benefit plans, no
participating employer, employer association, labor organization, or employee, nor any beneficiary
of a participating employee shall have any right, title, or interest in or to the Trust Fund, or in or
to the contributions, or in or to the benefits provided.
No participating employee shall be entitled to receive any part of the contributions in lieu
of the benefits provided through a benefit plan, nor shall a participating employee who does not
qualify for benefits, or his employer, have any claim to the contributions which may have been
paid on his behalf.
11.6 Cessation of Participation .
In the event a participating employer, employer association, or labor organization, or
groups thereof should cease participation in the Trust Fund, there shall be no division or allocation
of any of the monies or assets of the Trust Fund, except as may be required by law.
11.7 Protection of Trust Fund, Contributions, and Benefits .
No part of the Trust Fund (including the contributions) or the benefits payable under the
benefit plans shall be subject in any manner, by a participating employee or beneficiary, to
anticipation, alienation, sale, transfer, assignment, encumbrance, or charge, and any such attempt
shall be null and void, provided that the Trustees may recognize assignments of benefits from a
participating employee or beneficiary to a doctor, hospital, or other person or institution that has
treated or cared for, or provided services or goods to, the participating employee or beneficiary.
Further, no part of the Trust Fund (including the contributions) or the benefits payable
under the benefit plans shall be liable for the debts of a participating employee or beneficiary, nor
be subject in any manner to garnishment, attachment, lien, charge, or any other legal process
brought by any person against a participating employee or beneficiary, and any such attempt shall
be null and void.
11.8 Reliance Upon Written Documents .
The Trustees may act upon any written letter, report, certificate, instrument, or other
document submitted to them by any participating employer, labor organization, employee, or
beneficiary, or by any other person, where such document appears to be genuine and to be signed
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by the proper person or persons, and the Trustees shall be under no duty to make any investigation
or inquiry as to any statement contained in any such document.
11.9 Agents of Trust Fund .
The Trust Fund is an entity separate and apart from the participating employers, employer
associations, and labor organizations. Accordingly, unless authorized in a motion or resolution of
the Board of Trustees, no participating employer, employer association, or labor organization, nor
any individual employed thereby, shall have any authority to act or function for or on behalf of the
Trust Fund or as an agent thereof.
Likewise, unless authorized in a motion or resolution of the Board of Trustees no individual
Trustee shall have any authority to act or function for or on behalf of the Trust Fund or as an agent
thereof.
SECTION 12. MISCELLANEOUS
12.1 Trust Fund Offices .
The Trust Fund shall maintain a principal office and sub-offices, where necessary, in such
locations as the Trustees may determine.
12.2 Applicable Laws a nd Regulations .
This Trust Agreement shall be interpreted, and the Trust Fund shall be administered, in
accordance with the Employee Retirement Income Security Act of 1974, the Internal Revenue
Code, and the regulations pertinent thereto, and other applicable statutes and regulations, as such
statutes and regulations presently exist or as they may hereafter be amended.
References herein to particular sections of the above-mentioned statutes shall include any
regulations pertinent to such sections and any subsequent amendments to such sections or
regulations.
12.3 Service in More than One Fiduciary Capacity .
Any Trustee or other person who is a fiduciary may serve the Trust Fund in more than one
fiduciary capacity.
12.4 Notices .
Any written notice permitted or required by this Trust Agreement shall be personally
delivered to the person for whom it is intended or sent to such person at his residence or business
address by first class mail or prepaid telegram.
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12.5 Severability .
If any provision of this Trust Agreement, or of the benefit plans, is held to be illegal or
invalid for any reason, such illegality or invalidity shall not affect the remaining portions of the
Trust Agreement or of the benefit plans.
12.6 Titles and Words .
The titles of the various articles and sections of this Trust Agreement are inserted solely
for convenience of reference and are not a part of, nor shall they be used to construe, any term or
provision hereof. Whenever any words are used herein in the masculine gender, they shall b e
construed as though they were used in the feminine gender, and words in singular form shall be
construed as though they were used in the plural form, in all cases where they would so apply.
SECTION 13. AMENDMENTS AND TERMINATION
13.1 Amendments .
This Trust Agreement may be amended by action of the PORAC’s Board of Trustees, after
thirty (30) days advance written notice to the Board of Directors, which notice shall be sent to the
PORAC President with the proposed Amendment attached to the Notice.
13.2 Termination .
This Trust Agreement may be terminated at any time by action of the PORAC Board of
Directors on its own accord after fifteen (15) days’ advance written notice to the Trustees; or by
action of the Trustees after thirty (30) days’ advance written notice to the PORAC. Notice may
be waived by the party entitled to notice.
In any event, this Trust Agreement shall be automatically terminated upon the expiration
of all Memoranda of Understanding, special agreements, and subscription agreements requiring
the payment of contributions to the Trust Fund, and upon completion of the termination process.
Provided that for purposes of this provision a Memorandum of Understanding or special agreement
shall not be deemed to have expired in a strike or impasse situation, unless said strike or impasse
continues for more than twelve (12) months.
As part of the termination process, the Trustees may arrange for retention of an independent
Trustee to administer the wasting trust.
13.3 Allocation Upon Te rmination .
Upon the termination of this Trust Agreement, the Trustees shall wind up the affairs of the
Trust Fund. Any and all monies remaining in the Trust Fund, after the payment of expenses, shall
be allocated among the participating employees and beneficiaries as specified in Section 501, et
seq., of the Internal Revenue Code and related authority.
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AMENDMENT NO. 4
TO THE
TRUST AGREEMENT
GOVERNING THE
PORAC RETIREE MEDICAL TRUST
{14032/A0796178.5}
Dr. 11/12/23
The Board of Trustees of the PORAC Retiree Medical Trust does hereby amend the Trust Agreement
Governing the PORAC Retiree Medical Trust, restated effective January 1, 2022, and as amended thereafter
(Dr. 11/11/21 including Ams. 1-3) (the “Trust Agreement”). Legal counsel for the Trustees gave notice by
email to the Board of Directors of the Peace Officers Research Association of California (“PORAC”)
through its President Brian Marvel and legal counsel Robert Bonsall on August 1, 2023. This Amendment
No. 4 shall be effective on December 1, 2023.
Trust Discretion to Terminate Participation of a member Association and Participating Employer. In order to
affirm the right of the Board of Trustees of the PORAC Retiree Medical Trust (the “Trust”) to terminate the
participation of any bargaining unit or other group that participates in the Trust, the following changes are
made to Section 5:
a. The last paragraph of Section 5.2 is deleted; and
b. A new Section 5.5 is added, as follows:
“5.5 Termination of Participation.
The Trustees have the authority to decline or terminate the participation of any bargaining
unit or other group of employees (e.g., Non-Bargaining Unit Employees under Section 5.3) that
participate in the Trust Fund as described in Section 5 hereof, if: (a) the labor organization and the
employer fail to provide the Trustees with a copy of their collective bargaining agreement; (b) the
language of the contribution provisions in the collective bargaining agreement does not meet the
requirements established by the Trustees (if any); (c) the labor organization fails to submit a
subscription agreement binding it to this Trust Agreement, if required; (d) the negotiated contribution
rate is lesser, or greater, than the contribution rate supporting a particular benefit plan then being
administered by the Trustees, provided that the Trustees, in their discretion, may accept the different
contribution rate and establish different eligibility rules or benefit formulas for the employees
affected; (e) the Participating Employer fails to provide the Trustees with census data and/or
contribution reports that meet the requirements established by the Trustees; or (f) there exist other
facts and circumstances that, in the Trustees’ discretion, justify a declination or termination of
participation.”
Approved by the Board of Trustees on January 22, 2024, and effective as stated above.
For the BOARD OF TRUSTEES, Receipt Acknowledged: For the
PORAC Retiree Medical Trust PORAC BOARD OF DIRECTORS
______________/ s / ___________________ ______________/ s /___________________
Trustee Date For the Board of Directors
______________/ s /____________________ ____________________________________
Trustee Date Print Name Date
____________________________________
Title
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AMENDMENT NO. 24
TO THE
MEDICAL EXPENSE REIMBURSEMENT PLAN
OF THE
PORAC RETIREE MEDICAL TRUST
{14032/A0774983.4}
Dr. 04/26/23
The Board of Trustees of the PORAC Retiree Trust (the “Trust”) does hereby amend the
Medical Expense Reimbursement Plan, restated effective January 1, 2022 (incl. Plan Amendments
No. 1-21) (Dr. 11/1/21), and as amended thereafter (the “Plan”), as follows:
1. The Plan’s Right to Reimbursement for Overpaid Benefit Payments. Section 3.1(e) is
revised as follows:
“(e) Recoupment of Overpaid Benefits. If the Trust overpays benefits in regard to a
Beneficiary, the Trust Office, as directed by the Trustees, shall request repayment of the
overpayments from the Beneficiary. If the Beneficiary fails to repay the Trust for the
amount of the overpayment, the Trust Office, as directed by the Trustees, shall recoup the
overpaid amount from the Beneficiary’s future benefit payments. The Beneficiary will be
obligated to repay the Trust for overpaid benefits, as requested by the Trustees. This
section will be administered as allowed by law.”
2. Timing for Trust Office’s Claim Decision. Section 4.2 is deleted and revised to read as
follows:
“4.2 Acceptance or Denial of Claims by the Trust Office
(a) Standard Claim Decision – Timing. The Trust Office shall consider each
claim for Plan benefits and determine whether to grant or deny coverage under the
Plan. Subject to Sections 4.2(b) and 4.2(c) below, the Trust Office shall send
written notification of its decision to a Beneficiary not later than thirty (30) days
after receipt of the Beneficiary’s claim. This thirty (30) day period shall commence
upon the Trust Office’s receipt of any piece of claim documentation or information
from the Beneficiary, irrespective of whether the Beneficiary has provided all of
the documentation and information necessary for it to determine the claim. If
coverage is granted, the Beneficiary shall receive payment as stated in Section
3.6(d). If the claim is denied, the Beneficiary has the right to appeal the claim,
pursuant to Section 4.3 hereof and the Plan’s “Appeal Procedures,” if any, available
from the Trust Office. The denial notification shall include the following
information:
(1) The specific reason(s) for such denial;
(2) Specific reference to the Plan provisions upon which the denial is
based;
(3) A statement that the Beneficiary is entitled to receive, upon request
and free of charge, reasonable access to and copies of all documents,
records, and other information relevant to the Beneficiary’s claim for
benefits;
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(4) A description of any additional material or information necessary
for the Beneficiary to perfect the claim and an explanation of why such
material or information is necessary;
(5) A statement identifying any internal rules, guidelines, protocols, or
other similar criteria relied upon in the denial, copies of which will be
provided free of charge to a Beneficiary upon request;
(6) An explanation of the Plan’s “Appeal Procedures,” if any, with
respect to the denial of benefits and a statement of the Beneficiary’s right to
bring an action under ERISA Section 502(a) after exhausting the Plan’s
appeal procedures; and
(7) A description of the Plan’s limitation period for filing a lawsuit
against the Plan for benefit payments, as stated in Section 4.4(b) hereof.
(b) Extension of Time – Special Circumstances. If the Trust Office determines
that special circumstances require an extension of time for processing the claim,
written notice of the extension shall be furnished to the Beneficiary prior to the
termination of the initial thirty (30) day period referenced in Section 4.2(a) hereof.
The Trust Office’s extension notice shall: (i) inform the Beneficiary that it needs
the extension; (ii) explain the special circumstances that require the extension; (iii)
identify any additional information it may need from the Beneficiary (if the
extension is needed due to insufficient information); and (iv) confirm the date by
which the Trust Office expects to render a benefit determination. In no event shall
such extension exceed a period of fifteen (15) days from the end of the initial 30-
day period.
(c) Extension of Time to Submit Claim Information and Documentation. If the
Beneficiary fails to submit all necessary information and documentation to allow
the Trust Office to decide the claim, the period of time for the Trust Office to make
a benefit determination may be extended for one 15-day extension period, pursuant
to Section 4.2(b) hereof, and may not further extend the time for making its decision
on the claim unless the Beneficiary agrees in writing to further extend the deadline.
The Beneficiary shall be allowed at least forty-five (45) days from his or her receipt
of the Trust Office’s request for additional information within which to provide the
Trust Office with the additional information requested. In such case, the 15-day
extension period, and any remaining portion of the initial 30-day period, for the
Trust Office to decide the claim is tolled from the date on which the request for
additional information is sent to the Beneficiary. This tolling period shall expire on
the earlier of: (i) the date that the Trust Office receives a response from the
Beneficiary, without regard to whether the Beneficiary’s response provides all of
the information and documentation requested and necessary for the Trust Office to
decide the claim; or (ii) the date of the deadline established by the Trust Office for
Docusign Envelope ID: 1A8943AD-2630-43F0-AAD3-2FB356C0CA2F
Docusign Envelope ID: 1A8943AD-2630-43F0-AAD3-2FB356C0CA2F
Docusign Envelope ID: 1A8943AD-2630-43F0-AAD3-2FB356C0CA2F
AMENDMENT NO. 26
TO THE
MEDICAL EXPENSE REIMBURSEMENT PLAN
OF THE
PORAC RETIREE MEDICAL TRUST
{14032/A0802463.14}
Dr. 08/16/23
The Board of Trustees of the PORAC Retiree Medical Trust (the “Trust”) does hereby
amend the Medical Expense Reimbursement Plan, restated effective January 1, 2022 (incl. Plan
Amendments No. 1-21) (Dr. 11/1/21), and as amended thereafter (the “Plan”), as follows:
1. Section 1.7(a)(3) is revised to clarify that the Trust’s pooled account may receive
investment earnings and losses on Employee Account assets received by the Trust Office, prior
to the Trust Office transferring such Employee Account assets to the investment portfolio
selected by the Account Beneficiary. Therefore, the second sentence of Section 1.7(a)(3) is
revised as follows, effective September 1, 2023:
“The pooled account is a common investment account for monthly Pooled Contributions.
The pooled account will also include, and be credited or debited with, investment gains
and losses from Contributions intended for an Employee Account prior to the Trust
Office transferring those Contributions to the investment portfolio selected by the
Account Beneficiary.”
2. Section 3.5(a)(3) is revised to clarify that the Plan will not credit investment gains and
losses on Contributions to an Account Beneficiary’s Employee Account balance until the Trust
Office transfers those new Contributions intended for an Account Beneficiary’s Employee
Account to the investment portfolio selected by the Account Beneficiary, as indicated on the
Account Beneficiary’s portfolio selection form. Therefore, Section 3.5(a)(3) shall read as
follows, effective September 1, 2023:
“(3) Investment gains and losses on the Employee Account balance, net of any applicable
investment fees or expenses, which shall be credited to, or deducted from, the Employee
Account balance only on funds that the Trust Office has transferred to the investment
portfolio selected by the Account Beneficiary, pursuant to rules established by the
Trustees. Investment gains and losses earned on the Contributions intended for an
Account Beneficiary’s Employee Account balance prior to the Trust Office transferring
those Contributions to the investment portfolio selected by the Account Beneficiary will
be credited to or debited from the Trust’s pooled account, and the Account Beneficiary
has no right to these investment gains, nor does the Trust have any right to recoupment of
these investment losses from the Account Beneficiary’s Employee Account.”
3. A new Section 3.5(b) is added as follows, effective retroactive to January 1, 2022, and
the remaining Subsections of Section 3.5 are renumbered accordingly and references thereto are
adjusted throughout the Plan.
“(b) Selection of Investments for Employee Account. In accordance with the rules set
by the Trustees, Employees, Eligible Retirees, or Contributory Retirees may select an
investment portfolio for the balance of their Employee Account only during the following
periods, either: (1) upon the initial establishment of the Employee Account; or (2) during
the annual investment selection period, provided the selection is made within the deadline
Docusign Envelope ID: 1A8943AD-2630-43F0-AAD3-2FB356C0CA2F
Amendment No. 26 to the
Medical Expense Reimbursement Plan of the
PORAC Retiree Medical Trust
Page 2 of 2
{14032/A0802463.14} 2
included in the investment selection packet. The investment selected during these two
periods will remain in place until the next annual investment selection period.
Employees, Eligible Retirees, and Contributory Retirees may not select an investment
option for their Employee Account during any other period (e.g., no change in investment
selection when the Employee Account receives additional funding).”
Approved by the Board of Trustees on November 15, 2023, and effective as stated above.
For the BOARD OF TRUSTEES,
PORAC Retiree Medical Trust
________________/ s /_________________ _________________/ s / ________________
Trustee Trustee
____________________________________ ____________________________________
Print Name Print Name
Docusign Envelope ID: 1A8943AD-2630-43F0-AAD3-2FB356C0CA2F
AMENDMENT NO. 27
TO THE
MEDICAL EXPENSE REIMBURSEMENT PLAN
OF THE
PORAC RETIREE MEDICAL TRUST
{14032/A0820434.3}
Dr. 11/3/23
The Board of Trustees of the PORAC Retiree Medical Trust (the “Trust”) does hereby amend
the Medical Expense Reimbursement Plan, restated effective January 1, 2022 (incl. Plan
Amendments No. 1-21) (Dr. 11/1/21), and as amended thereafter (the “Plan”), as follows:
1. Clarification of Surviving Spouse Benefits. The Board of Trustees amends the Plan to
clarify that Surviving Spouses includes Surviving Spouses of Employees, not only Surviving Spouses
of Eligible Retirees, who meet the requirements for eligibility for benefits, except for attainment of
age 55 and separation from employment with a Participating Employer, and that the Surviving
Spouse of an Employee or Eligible Retiree who has not yet attained the age of eligibility for benefits,
shall receive benefits under the Plan for up to twenty-four months, prior to the date that the Surviving
Spouse attains age 55. Therefore, the second sentence of Section 1.22 is revised as follows, effective
retroactive to September 1, 2008:
“1.22 ‘Surviving Spouse’ means the lawful spouse, as defined in the Internal Revenue Code,
who was in that status at least 12 months on the date of the Eligible Retiree’s death. Also,
the Surviving Spouse of an Employee who satisfies Sections 2.1(a)(1), 2.1(a)(2), and
2.1(a)(3) shall be considered a Surviving Spouse.”
Additionally, Section 3.4(b) is revised to read as follows, effective retroactive to September 1, 2008:
“(b) Surviving Spouse and Surviving Children. The coverage of a Surviving Spouse of an
Employee or Eligible Retiree who dies prior to the Eligible Retiree’s or Employee’s age 55
shall terminate after benefits have been paid for a period of twenty-four (24) consecutive
months starting in the month after the death, and shall resume in the month that the Surviving
Spouse attains the eligibility age of the deceased Employee, and continue until the Surviving
Spouse’s death. The coverage under the Plan of Surviving Children shall terminate on the
date that the last Surviving Child no longer meets the definition of a Child in Section 1.5
hereof.”
2. Update to Plan Section References. Effective retroactive to July 1, 2023, the reference to
Section 1.8(a) and 1.8(b), as stated under Plan Amendment No. 25 is revised to Section 1.9(a) and
1.9(b) to reflect that Plan Amendment No. 25 amended the Sections 1.9(a) and 1.9(b) under the
definition of “Covered Expenses.”
Approved by the Board of Trustees on November 15, 2023, and effective as stated above.
For the BOARD OF TRUSTEES,
PORAC Retiree Medical Trust
_____________/ s /____________________ ______________/ s /___________________
Trustee Trustee
____________________________________ ____________________________________
Print Name Print Name
Docusign Envelope ID: 1A8943AD-2630-43F0-AAD3-2FB356C0CA2F
AMENDMENT NO. 28
TO THE
MEDICAL EXPENSE REIMBURSEMENT PLAN
OF THE
PORAC RETIREE MEDICAL TRUST
{14032/A0852817.8}
Dr. 4/25/24
The Board of Trustees of the PORAC Retiree Medical Trust (the “Trust”) does hereby amend
the Medical Expense Reimbursement Plan, restated effective January 1, 2022 (incl. Plan
Amendments No. 1-21) (Dr. 11/1/21), and as amended thereafter (the “Plan”), as follows:
1. Definition of Association. The Board of Trustees amends the Plan to provide that the
definition of Association includes labor organizations outside of California that meet the out-of-state
limited membership requirements of PORAC. Therefore, the Section 1.2 is revised as follows,
effective when an Association from a fourth state commences contributions to the Trust:
“ ‘Association’ means: (a) A lawful labor organization located in California that is a member
association in PORAC, represents Employees, and is party to a Memorandum of
Understanding with a Participating Employer; or (b) A lawful labor organization that
represents Employees who are employed in states outside of California and that meet the
requirements to be out-of-state limited member associations in PORAC, provided that
participation of that organization in the Trust is approved by the Board of Trustees; or (c)
Any rational class of employees of a participating employer that is the subject of a Special
Agreement, provided that participation of that employee class in the Trust is approved
according to rules set by the Board of Trustees.”
2. Rate of Leave Transfers for Management Associations. The Board of Trustees amends the
Plan to provide that the percentage rate of accrued leave transfer that the Plan will accept for
Associations of management employees cannot exceed the percentage of accrued leave transfer for
non-management employees at the same employer. However, Associations of management
employees who, prior to January 22, 2024, had MOU language providing for transfer of a higher
percentage of accrued leave to the Plan than non-management employees at the same employer shall
be permitted to maintain that MOU language in future MOUs. Therefore, effective for all other
Associations of management employees on or after January 22, 2024, the following new sentences
are added to the end of Section 1.7(b):
“The percentage rate of allowable Leave Transfers for Associations of management
Employees under this Plan shall not exceed the percentage rate of Leave Transfer set forth in
the MOU of the non-management Employees at the same employer. I.e., the Plan shall not
accept Leave Transfers for management Employees at a rate higher than for the non-
management Employees at the same employer.”
3. Deposits of Leave Transfers The last two sentences (not including the addition in Section 2
above) are deleted from Section 1.7(b), effective May 9, 2024 (i.e., the following sentences are
deleted):
“Leave transfers shall be deposited, at least initially, into Individual Accounts. Under certain
circumstances, Leave Transfers may be moved later to the Trust’s pooled account, as set
forth in Sections 2.2(c) and 3.5(a) herein.”
Docusign Envelope ID: 1A8943AD-2630-43F0-AAD3-2FB356C0CA2F
Docusign Envelope ID: 1A8943AD-2630-43F0-AAD3-2FB356C0CA2F