REDWOOD EMPIRE PUBLIC SAFETY MEDICAL TRUST INFORMATION
DEFINITIONS:
RMT: Redwood Empire Public Safety Medical Trust
MOU: Memorandum of Understand (AKA: Employee Contract with County)
PRE-2009 EMPLOYEE: An employee who was hired by the County of Sonoma prior to January 1, 2009
POST-2009 EMPLOYEE: An employee who was hired by the County of Sonoma on or after January 1, 2009
GROUP-A ELIGIBLE MEMBER: Deputies who retired after September 1, 2009 who are eligible to participate in the RMT as Group-A members
GROUP-B ELIGIBLE MEMBER: Deputies who retired prior to September 1, 2009 who are eligible to participate in the RMT as Group-B members
RMT: Redwood Empire Public Safety Medical Trust
MOU: Memorandum of Understand (AKA: Employee Contract with County)
PRE-2009 EMPLOYEE: An employee who was hired by the County of Sonoma prior to January 1, 2009
POST-2009 EMPLOYEE: An employee who was hired by the County of Sonoma on or after January 1, 2009
GROUP-A ELIGIBLE MEMBER: Deputies who retired after September 1, 2009 who are eligible to participate in the RMT as Group-A members
GROUP-B ELIGIBLE MEMBER: Deputies who retired prior to September 1, 2009 who are eligible to participate in the RMT as Group-B members
THE HISTORY OF RETIREE MEDICAL AND THE MEDICAL TRUST
2009 CHANGES TO COUNTY RETIREE MEDICAL
For many years, the County of Sonoma has provided the option for its retired employees to purchase retiree medical insurance equal to that of active employees. In order to do this, the County agreed to pay each retired employee 85% of the County's Kaiser premium insurance rand allow them to apply that monthly payment to their choice of any medical plan offered by the County. The employee was required to pay the difference in the costs of their premium. On January 1, 2009, this all changed. Effective that date, the County abruptly ended this practice for all previous and future retired employees and left 1000s of employees in shock.
RETIREES SUE THE COUNTY FOR LOST MEDICAL BENEFITS - SETTLEMENT
The above actions by the County resulted in a class-action lawsuit by retired County employees of many job classes led by the Sonoma County Association of Retired Employees (SCARE). The lawsuit resulted in a settlement agreement which gave at least some retiree medical benefits back to the retirees but nowhere near what they lost.
For more info on the retiree lawsuit, you can visit this link to the SCARE website below:
SCARE RETIREE LAWSUIT INFO: http://www.sonomacountyretirees.com/legal.shtml
For a copy of the final settlement agreement reached between the County and the SCARE retirees, visit the below link:
SCARE RETIREE LAWSUIT SETTLEMENT AGREEMENT: http://www.sonomacountyretirees.com/settlement_agreement.pdf
FUTURE MEDICAL FOR RETIREES
Due to the results of the retiree lawsuit, coupled with additional negotiations between the County and the DSA, the following changes occurred to the County-paid retiree medical benefits deputies receive:
BARGAINING FOR FUTURE RETIREE MEDICAL BENEFITS FOR ACTIVE MEMBERS BEGINS
Contrary to what some have said, the DSA bargaining team of that time did not, "Give away" the retiree medical benefits of its active members in 2009. The County intended to strip these benefits from virtually every active employee group in the County during bargaining so the DSA had some decisions to make. The negotiators worked hard to bargain with the County to keep at least some of the retiree medical benefits DSA members previously had. The problem was these benefits had never been defined in the DSA's or another other bargaining unit's MOU, so adding this benefit to a contract was like starting from scratch and involved give and take from every unit in order to succeed. In the end, the DSA & DSLEM were the only bargaining units in the County to successfully bargain to define additional retiree medical benefits to help fill the cost gap for our members (through an RMT). The tentative contract was then voted on and ratified by all DSA / DSLEM members.
WHAT IS A RETIREE MEDICAL TRUST?
A retiree medical trust is a group fund that can be used by participants to obtain reimbursement for IRS qualified medical expenses they incur. Some of those expenses include health plan premiums, co-pays, medications, vision and dental care expenses, medical equipment expenses, etc. Eligible participants in the trust can use their benefits to get reimbursed for these expenses up to the limits set forth by their eligibility in the trust, In the case of the DSA's RMT, these limits are different for each participant and are based upon a number of factors including: how many months the participant paid into the trust account while actively employed by the County, how much the County paid into the trust on behalf of the participant while the participant was actively employed by the County, how much of the participant's accrued vacation bank was transferred into the trust upon the participant's separation from County employment and how many additional RMT service credits (ASUs) the participant purchased upon their separation from active County employment.
THE BIRTH OF THE RETIREE MEDICAL TRUST (RMT)
The 2008-09 DSA negotiators successfully bargained for the creation of a retiree medical trust (RMT) to supplement the retirement health care costs for most retiring DSA retirees. During the bargaining sessions, the DSA negotiated with the County to pay a deposit of roughly $300,000.00 to start our RMT. In addition to this deposit, the active Deputies working in 2009 agreed to defer raises negotiated for that year for approximately three months to secure another roughly $300,000.00 to add to the initial deposit into the RMT. A trust attorney was also hired and the framework of the trust was drafted. When all the work was completed, the Redwood Empire Public Safety Medical Trust (RMT) was born. The RMT secures a monthly benefit for DSA retirees who have retired with 10 or more years of service as a deputy sheriff with the County, and even provided a benefit for those who retired prior to the ratification of the 2008-09 MOU!
GROWTH OF THE TRUST
The current RMT GROUP-A (POST-2009) and GROUP-B (PRE-2009) funds have grown substantially since the RMT was started thanks to on-going payments from active DSA members, small supplemental monthly payments by the County on behalf of the active members, and fantastic investment work by the fund managers under the direction of the board of trustees.
ELIGIBILITY
Now that we have an established RMT, eligible retired deputies can enroll in and use the RMT to assist them with medical bills and insurance premiums. The amount each eligible participant receives varies on a number of factors. Only sworn deputy sheriffs who served in the Patrol Division of the County of Sonoma Sheriff's Office are currently eligible to participate in the RMT. Retired deputy sheriffs should review the RMT summary plan documents and call Vimly Benefits Solutions at: (855) 796-6978 to determine if they are eligible for funds from the RMT and how much.
RMT FUND USAGE CHANGES EFFECTIVE 2018
In 2018, the DSA successfully negotiated several key changes in their contract that allowed for much broader use of the retiree medical stipend funds retirees receive. The changes were as follows:
For many years, the County of Sonoma has provided the option for its retired employees to purchase retiree medical insurance equal to that of active employees. In order to do this, the County agreed to pay each retired employee 85% of the County's Kaiser premium insurance rand allow them to apply that monthly payment to their choice of any medical plan offered by the County. The employee was required to pay the difference in the costs of their premium. On January 1, 2009, this all changed. Effective that date, the County abruptly ended this practice for all previous and future retired employees and left 1000s of employees in shock.
RETIREES SUE THE COUNTY FOR LOST MEDICAL BENEFITS - SETTLEMENT
The above actions by the County resulted in a class-action lawsuit by retired County employees of many job classes led by the Sonoma County Association of Retired Employees (SCARE). The lawsuit resulted in a settlement agreement which gave at least some retiree medical benefits back to the retirees but nowhere near what they lost.
For more info on the retiree lawsuit, you can visit this link to the SCARE website below:
SCARE RETIREE LAWSUIT INFO: http://www.sonomacountyretirees.com/legal.shtml
For a copy of the final settlement agreement reached between the County and the SCARE retirees, visit the below link:
SCARE RETIREE LAWSUIT SETTLEMENT AGREEMENT: http://www.sonomacountyretirees.com/settlement_agreement.pdf
FUTURE MEDICAL FOR RETIREES
Due to the results of the retiree lawsuit, coupled with additional negotiations between the County and the DSA, the following changes occurred to the County-paid retiree medical benefits deputies receive:
- Pre-2009 hired deputies were to receive no more than $500 a month from the County towards their monthly medical premium upon retirement when enrolling in a County health plan.
- Post-2009 hired deputies were to receive approximately $100 per month (or $1,200 per year) during their active employment in addition to a lump-sum contribution of $2,400 (after their first year of service) which was to be deposited into an individual Health Reimbursement Account (HRA) established in their name. Upon retirement, these monthly payments would cease and the County would pay the employee nothing more after they retire.
BARGAINING FOR FUTURE RETIREE MEDICAL BENEFITS FOR ACTIVE MEMBERS BEGINS
Contrary to what some have said, the DSA bargaining team of that time did not, "Give away" the retiree medical benefits of its active members in 2009. The County intended to strip these benefits from virtually every active employee group in the County during bargaining so the DSA had some decisions to make. The negotiators worked hard to bargain with the County to keep at least some of the retiree medical benefits DSA members previously had. The problem was these benefits had never been defined in the DSA's or another other bargaining unit's MOU, so adding this benefit to a contract was like starting from scratch and involved give and take from every unit in order to succeed. In the end, the DSA & DSLEM were the only bargaining units in the County to successfully bargain to define additional retiree medical benefits to help fill the cost gap for our members (through an RMT). The tentative contract was then voted on and ratified by all DSA / DSLEM members.
WHAT IS A RETIREE MEDICAL TRUST?
A retiree medical trust is a group fund that can be used by participants to obtain reimbursement for IRS qualified medical expenses they incur. Some of those expenses include health plan premiums, co-pays, medications, vision and dental care expenses, medical equipment expenses, etc. Eligible participants in the trust can use their benefits to get reimbursed for these expenses up to the limits set forth by their eligibility in the trust, In the case of the DSA's RMT, these limits are different for each participant and are based upon a number of factors including: how many months the participant paid into the trust account while actively employed by the County, how much the County paid into the trust on behalf of the participant while the participant was actively employed by the County, how much of the participant's accrued vacation bank was transferred into the trust upon the participant's separation from County employment and how many additional RMT service credits (ASUs) the participant purchased upon their separation from active County employment.
THE BIRTH OF THE RETIREE MEDICAL TRUST (RMT)
The 2008-09 DSA negotiators successfully bargained for the creation of a retiree medical trust (RMT) to supplement the retirement health care costs for most retiring DSA retirees. During the bargaining sessions, the DSA negotiated with the County to pay a deposit of roughly $300,000.00 to start our RMT. In addition to this deposit, the active Deputies working in 2009 agreed to defer raises negotiated for that year for approximately three months to secure another roughly $300,000.00 to add to the initial deposit into the RMT. A trust attorney was also hired and the framework of the trust was drafted. When all the work was completed, the Redwood Empire Public Safety Medical Trust (RMT) was born. The RMT secures a monthly benefit for DSA retirees who have retired with 10 or more years of service as a deputy sheriff with the County, and even provided a benefit for those who retired prior to the ratification of the 2008-09 MOU!
GROWTH OF THE TRUST
The current RMT GROUP-A (POST-2009) and GROUP-B (PRE-2009) funds have grown substantially since the RMT was started thanks to on-going payments from active DSA members, small supplemental monthly payments by the County on behalf of the active members, and fantastic investment work by the fund managers under the direction of the board of trustees.
ELIGIBILITY
Now that we have an established RMT, eligible retired deputies can enroll in and use the RMT to assist them with medical bills and insurance premiums. The amount each eligible participant receives varies on a number of factors. Only sworn deputy sheriffs who served in the Patrol Division of the County of Sonoma Sheriff's Office are currently eligible to participate in the RMT. Retired deputy sheriffs should review the RMT summary plan documents and call Vimly Benefits Solutions at: (855) 796-6978 to determine if they are eligible for funds from the RMT and how much.
RMT FUND USAGE CHANGES EFFECTIVE 2018
In 2018, the DSA successfully negotiated several key changes in their contract that allowed for much broader use of the retiree medical stipend funds retirees receive. The changes were as follows:
- Upon retirement, the $500/mo. stipend paid to PRE-2009 hired retirees now goes directly into an individual RMT savings account in the name of the employee. These funds continue to accrue until the retiree dies. There is no monthly cap on these funds so the entire account balance may be used at any time in addition to the monthly shared fund payment each retiree is eligible for.
- While active, the $100/mo. POST-2009 hired employees previously had placed in an individual HRA account now goes into an individual RMT savings account in the name of the employee. Just as with the $500 stipend for PRE-2009 hired employees, there is no monthly cap on these funds so the entire account balance may be used at any time in addition to the monthly shared fund payment each retiree is eligible for.
- All retirees are still eligible to enroll in a county health plan upon retirement but there is no longer a requirement for PRE-2009 employees to do so in order to use their $500 stipend. Because these funds now come from the RMT rather than via the County as a pension check deduction, members may enroll in any health plan they chose and use the stipend funds to help pay their premiums or pay any other IRS qualified medical expense without spending cap limits.
OPERATION OF THE TRUST
The RMT is broken up into two groups; GROUP-A and GROUP-B.
GROUP-A is composed of DSA members who worked for the Sheriff's Office and retired after September 1, 2009. Members of GROUP-A are eligible for a lifetime benefit from the trust if they pay into the trust for 10 years' worth of service time. Anyone in Group-A who does not pay into the trust for this number of years of service is ineligible for the lifetime benefit but can submit claims against the trust to reclaim the money paid into the trust on their behalf. Once they've exhausted their individual funds, they will receive no further benefits from the trust. NOTE: A retiring deputy may pay up to 18-months of COBRA to reach their full 10-year vesting point.
GROUP-B is composed of sworn deputy sheriffs who worked for the Sheriff's Office and retired before September 1, 2009. GROUP-B eligible folks may receive a monthly benefit from the trust if determined eligible.
If eligible, GROUP-B participants would receive a small lifetime benefit from the trust. The source of GROUP-B payouts is not directly from the monthly payments made into the fund by participating members. The money GROUP-B members receive comes from the initial negotiated lump sum ($300k + interest) of cash paid to the DSA during the negotiations of the RMT. This benefit is loosely related to the 2009 Sonoma County retiree lawsuit. The negotiated lump sum of cash the DSA received was placed into the RMT fund where it was invested and received tax advantages for being designated as medical funds. These funds provide the GROUP-B participants with a tax-deferred medical stipend as long as they are not commingled with the regular trust funds.
COUNTY-PAID POST-EMPLOYMENT MEDICAL BENEFITS NOW MERGED INTO RMT: EFFECTIVE AUGUST 28, 2018
As a result of DSA/DSLEM the contract of 2018-19, the separate distribution of the County-paid post-employment medical stipend paid to retired deputies has been changed as follows:
UPDATE: JULY 1, 2021 - US DEPT OF LABOR INVOKES FUNDING LIMITS FOR RETIRED ANNUITANTS STILL WORKING FOR THE COUNTY OF SONOMA
In late 2020, the US Department of Labor introduced a new policy affecting retiree medical trusts. These changes go into effect on July 1, 2021 and require that in order for a participant of an RMT to use their funds, they must first fully separate from employment with the employer under which they were granted participation in their RMT. This means that retired deputy sheriffs who go to work doing another job for the County of Sonoma or return to work in a part time extra-help capacity with the County of Sonoma may not draw any of the RMT funds they would otherwise be eligible for until they separate from County of Sonoma Employment. THIS DOES NOT AFFECT THE $500 MONTHLY STIPEND SOME RETIREES OBTAIN DIRECTLY FROM THE COUNTY VIA PENSION CHECK DEDUCTION.
ENROLLMENT
To confirm your eligibility or to enroll in the RMT, please contact the RMT administrator (Vimly) using the below info:
Vimly Benefit Solutions
Redwood Empire Public Safety Medical Trust Group
Phone: (855) 796-6978
Email: redwood@vimly.com
RMT Administrative Website and Claims Portal: https://redwood.simon365.com
GROUP-A is composed of DSA members who worked for the Sheriff's Office and retired after September 1, 2009. Members of GROUP-A are eligible for a lifetime benefit from the trust if they pay into the trust for 10 years' worth of service time. Anyone in Group-A who does not pay into the trust for this number of years of service is ineligible for the lifetime benefit but can submit claims against the trust to reclaim the money paid into the trust on their behalf. Once they've exhausted their individual funds, they will receive no further benefits from the trust. NOTE: A retiring deputy may pay up to 18-months of COBRA to reach their full 10-year vesting point.
GROUP-B is composed of sworn deputy sheriffs who worked for the Sheriff's Office and retired before September 1, 2009. GROUP-B eligible folks may receive a monthly benefit from the trust if determined eligible.
If eligible, GROUP-B participants would receive a small lifetime benefit from the trust. The source of GROUP-B payouts is not directly from the monthly payments made into the fund by participating members. The money GROUP-B members receive comes from the initial negotiated lump sum ($300k + interest) of cash paid to the DSA during the negotiations of the RMT. This benefit is loosely related to the 2009 Sonoma County retiree lawsuit. The negotiated lump sum of cash the DSA received was placed into the RMT fund where it was invested and received tax advantages for being designated as medical funds. These funds provide the GROUP-B participants with a tax-deferred medical stipend as long as they are not commingled with the regular trust funds.
COUNTY-PAID POST-EMPLOYMENT MEDICAL BENEFITS NOW MERGED INTO RMT: EFFECTIVE AUGUST 28, 2018
As a result of DSA/DSLEM the contract of 2018-19, the separate distribution of the County-paid post-employment medical stipend paid to retired deputies has been changed as follows:
- Deputies hired before January 1, 2009 will no longer receive their $500 post-retirement medical stipend directly from the County after they retire. Instead, those who retire after August 28, 2018 will now have this monthly stipend sent directly to the RMT and routed into an individual interest-bearing account on their behalf. This account will be the same account the employee's mandatory vacation bank transfer will be sent to upon their retirement. This account will be available to the employee in addition to the monthly payments from the main RMT fund they are eligible for. These changes now remove the requirement that members who retire after August 28, 2018 must choose a health care plan the County offers in order to receive their $500 stipend. Now retiring members can choose any health care provider's plan they want and apply these funds to pay premiums for that plan. Additionally, there is no deadline as to when the money in this individual account must be used. The monthly balance of the individual account will continue to grow with each stipend payment from the County until the member files a claim to use it or dies. This is great for someone who may already be covered by their spouse's health care plan and has no need for additional funds to cover the cost of their care.
- Active Deputies hired after January 1, 2009 receive a small amount of money for retiree medical from the County as long as they continue to work for the County as a deputy. Prior to August 28, 2018, this money was placed in a separate HSA account for the member. Now these monthly payments are placed into an interest-bearing individual RMT account instead. Unlike the PRE-2009 hired employees, upon retirement, these members will receive no further money from the County. This account will be available to the employee in addition to the monthly payments from the main shared RMT fund they are eligible to get reimbursed for IRA qualified medical expenses.
UPDATE: JULY 1, 2021 - US DEPT OF LABOR INVOKES FUNDING LIMITS FOR RETIRED ANNUITANTS STILL WORKING FOR THE COUNTY OF SONOMA
In late 2020, the US Department of Labor introduced a new policy affecting retiree medical trusts. These changes go into effect on July 1, 2021 and require that in order for a participant of an RMT to use their funds, they must first fully separate from employment with the employer under which they were granted participation in their RMT. This means that retired deputy sheriffs who go to work doing another job for the County of Sonoma or return to work in a part time extra-help capacity with the County of Sonoma may not draw any of the RMT funds they would otherwise be eligible for until they separate from County of Sonoma Employment. THIS DOES NOT AFFECT THE $500 MONTHLY STIPEND SOME RETIREES OBTAIN DIRECTLY FROM THE COUNTY VIA PENSION CHECK DEDUCTION.
ENROLLMENT
To confirm your eligibility or to enroll in the RMT, please contact the RMT administrator (Vimly) using the below info:
Vimly Benefit Solutions
Redwood Empire Public Safety Medical Trust Group
Phone: (855) 796-6978
Email: redwood@vimly.com
RMT Administrative Website and Claims Portal: https://redwood.simon365.com
THE FUTURE OF THE MEDICAL TRUST
RMT BENEFIT ANALYSIS AND GROWTH
An actuarial analysis of the fund is done occasionally to determine the rate of pay to the fund's subscribers in order to keep the fund solvent and at the same time pay the maximum benefit possible to our retired members. As of this date, the fund is doing well and we have already seen an increase in the monthly benefit to our retired members drawing from the fund.
It is the hope of the DSA that one day we will no longer be tethered to the County for any healthcare support in retirement and that the RMT will cover all the medical expenses of our retired members.
RESOLVING ISSUES
Participants in the RMT should work with Vimly to resolve issue that arise out of their use of the trust. Participants who have DSA website access and have further questions regarding the RMT are asked to review the various RMT related posts RMT section of the DSA secure Member Area. Participants are also encouraged to review the various up-to-date RMT plan documents posted on the RMT administrator's website found here: https://redwood.simon365.com. If a participant is still unable to find the answers to their questions or resolve their issues with Vimly, they should contact a trustee for guidance.
RMT TRUSTEES
There are 5 trustees who make up the RMT Board of Trustees. The trustees are elected for 3-year terms by the active members of the DSA. Active and retired trust participants can contact a trustee to seek assistance with trust related questions. For a list of the current RMT trustees, visit the "Staff Page" of the DSA website's secure Member Area.
An actuarial analysis of the fund is done occasionally to determine the rate of pay to the fund's subscribers in order to keep the fund solvent and at the same time pay the maximum benefit possible to our retired members. As of this date, the fund is doing well and we have already seen an increase in the monthly benefit to our retired members drawing from the fund.
It is the hope of the DSA that one day we will no longer be tethered to the County for any healthcare support in retirement and that the RMT will cover all the medical expenses of our retired members.
RESOLVING ISSUES
Participants in the RMT should work with Vimly to resolve issue that arise out of their use of the trust. Participants who have DSA website access and have further questions regarding the RMT are asked to review the various RMT related posts RMT section of the DSA secure Member Area. Participants are also encouraged to review the various up-to-date RMT plan documents posted on the RMT administrator's website found here: https://redwood.simon365.com. If a participant is still unable to find the answers to their questions or resolve their issues with Vimly, they should contact a trustee for guidance.
RMT TRUSTEES
There are 5 trustees who make up the RMT Board of Trustees. The trustees are elected for 3-year terms by the active members of the DSA. Active and retired trust participants can contact a trustee to seek assistance with trust related questions. For a list of the current RMT trustees, visit the "Staff Page" of the DSA website's secure Member Area.
Last Updated: 1/8/23
