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
In 2009, the County of Sonoma elected to discontinue the practice of paying 85% of the Kaiser premium health care insurance rate for all County employees. The new benefit reduced employee medical benefits (active and retired) to $500 per month, no matter what the cost of the monthly premium was. The affected employees included retirees. Many retirees counted on this benefit for many years and had long been retired from County service.
RETIREES SUE THE COUNTY FOR LOST MEDICAL BENEFITS - SETTLEMENT
The above actions by the County generated a lawsuit by retired County employees of many job classes through 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.
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:
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 at the time did not, "Give Away" the retiree medical benefits of its active members in 2009. Instead, the negotiators were forced into a position 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 DSA bargaining unit's MOU. Additionally, as with all MOU's, this agreement was voted on and ratified by all DSA members, not just the bargaining team. The DSA & DSLEM were the only bargaining units in the entire County to successfully bargain to define additional retiree medical benefits to help fill the cost gap for our members (through an RMT).
THE BIRTH OF THE RETIREE MEDICAL TRUST (RMT)
The 2008-09 DSA negotiators were successfully bargained for the creation of a retiree medical trust (RMT) to supplement their retirement health care costs for most retiring DSA retirees. Their work included securing a monthly benefit for DSA retirees who had retired with 10 or more years of service as a deputy with the County, even before the ratification of the 2008-09 MOU. As previously stated, the DSA is currently the only County bargaining unit to have successfully negotiated such a fund for its active and retired members. We are hopeful other units will be successful in doing so as well.
During the bargaining of 2009, the DSA negotiated with the County to deposit roughly $300,000.00 to start our RMT. Deputies working in 2009 agreed to defer raises they were to receive that year for approximately three months to secure another roughly $300,000.00 for the initial deposit into the RMT. The current RMT PART A and PART B funds have grown substantially since that time thanks to on-going payments from active DSA members and small supplemental payments by the County on behalf of the active members.
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 to determine if they are eligible for funds from the RMT and how much.
In 2009, the County of Sonoma elected to discontinue the practice of paying 85% of the Kaiser premium health care insurance rate for all County employees. The new benefit reduced employee medical benefits (active and retired) to $500 per month, no matter what the cost of the monthly premium was. The affected employees included retirees. Many retirees counted on this benefit for many years and had long been retired from County service.
RETIREES SUE THE COUNTY FOR LOST MEDICAL BENEFITS - SETTLEMENT
The above actions by the County generated a lawsuit by retired County employees of many job classes through 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.
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:
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.
- 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 RMT account established in their name.
BARGAINING FOR FUTURE RETIREE MEDICAL BENEFITS FOR ACTIVE MEMBERS BEGINS
Contrary to what some have said, the DSA bargaining team at the time did not, "Give Away" the retiree medical benefits of its active members in 2009. Instead, the negotiators were forced into a position 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 DSA bargaining unit's MOU. Additionally, as with all MOU's, this agreement was voted on and ratified by all DSA members, not just the bargaining team. The DSA & DSLEM were the only bargaining units in the entire County to successfully bargain to define additional retiree medical benefits to help fill the cost gap for our members (through an RMT).
THE BIRTH OF THE RETIREE MEDICAL TRUST (RMT)
The 2008-09 DSA negotiators were successfully bargained for the creation of a retiree medical trust (RMT) to supplement their retirement health care costs for most retiring DSA retirees. Their work included securing a monthly benefit for DSA retirees who had retired with 10 or more years of service as a deputy with the County, even before the ratification of the 2008-09 MOU. As previously stated, the DSA is currently the only County bargaining unit to have successfully negotiated such a fund for its active and retired members. We are hopeful other units will be successful in doing so as well.
During the bargaining of 2009, the DSA negotiated with the County to deposit roughly $300,000.00 to start our RMT. Deputies working in 2009 agreed to defer raises they were to receive that year for approximately three months to secure another roughly $300,000.00 for the initial deposit into the RMT. The current RMT PART A and PART B funds have grown substantially since that time thanks to on-going payments from active DSA members and small supplemental payments by the County on behalf of the active members.
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 to determine if they are eligible for funds from the RMT and how much.
OPERATION OF THE TRUST
The RMT is broken up into two groups; Group A and Group B.
Group A is comprised 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 year's 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 comprised 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 Part B payouts is not directly from the monthly payments made into the fund by participating members. The money Part 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 Part 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 a County medical stipend paid to deputies has been changed as follows:
UPDATE: JULY 1, 2021 - US DEPT OF LABOR MAKES CHANGES THAT PREVENT RMT BENEFITS FROM BEING USED BY SOME PARTICIPANTS
In late 2020, the US Department of Labor introduced a new policy affecting retiree medical trusts. These changes that take effect effect on July 1, 2021 require that in order for a participant of an RMT, 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 from their funds RMT until they fully leave County of Sonoma Employment.
ENROLLMENT
To confirm your eligibility or to enroll in the RMT, please contact the RMT administrator (Vimly) using the below info:
Vimly Benefit Solutions
Phone: (855) 796-6978
Email: redwood@vimly.com
RMT Administrative Website and Claims Portal: https://redwood.simon365.com
Group A is comprised 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 year's 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 comprised 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 Part B payouts is not directly from the monthly payments made into the fund by participating members. The money Part 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 Part 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 a County medical stipend paid to 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 is $500 stipend. Now retiring members can choose any health care provider's plan they want and apply these funds to 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. 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 for retiree medical expenses in addition to the monthly payments from the main RMT fund they are eligible for.
UPDATE: JULY 1, 2021 - US DEPT OF LABOR MAKES CHANGES THAT PREVENT RMT BENEFITS FROM BEING USED BY SOME PARTICIPANTS
In late 2020, the US Department of Labor introduced a new policy affecting retiree medical trusts. These changes that take effect effect on July 1, 2021 require that in order for a participant of an RMT, 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 from their funds RMT until they fully leave County of Sonoma Employment.
ENROLLMENT
To confirm your eligibility or to enroll in the RMT, please contact the RMT administrator (Vimly) using the below info:
Vimly Benefit Solutions
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 with DSA website access who have further questions regarding the RMT are asked to review the various RMT related posts on the Member Area of the DSA website. Participants are also encouraged to review the various 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 "Team Page" of the DSA website's secure Member Area or contact the DSA Secretary at: secretary@sonomacountydsa.org
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 with DSA website access who have further questions regarding the RMT are asked to review the various RMT related posts on the Member Area of the DSA website. Participants are also encouraged to review the various 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 "Team Page" of the DSA website's secure Member Area or contact the DSA Secretary at: secretary@sonomacountydsa.org
Last Updated: 8/28/21
