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Prime Trust

Participant Access

PRIME-Plan(trust)

Employer Post/Pre Retirement
Incurred Medical Expense Plan

Precision Retirement Group presents a health benefit trust for government employers
and their employees. It is called: The PRIME-Plan(trust). The PRIME-Plan is an
employer-sponsored trust that allows an employer to fund employee and retiree
medical benefits on an entirely tax-free basis. This Plan is designed to help governmental
employers meet the challenges of providing medical benefits for employees and
retirees.

What is the legal basis for The PRIME Plan?

The PRIME Plan is based on Internal Revenue Code (the “Code”) provisions and Internal Revenue Service (“IRS”) rulings.The IRS has ruled that nonprofit organizations,including government employers,can establish funds,which are deemed to be an “integral part” of the organization.The IRS has determined that providing welfare benefits to employees or retirees qualifies as an “integral part” of government activities.Because providing welfare benefits is an integral part of the government’s activities,the trust used to fund the welfare benefits is also tax-exempt.The Code and Regulations provide that employees / retirees may receive employer paid health benefits on a tax-free basis.

Are plan participants subject to
income taxes on employer contributions
or benefit payments from the Trust?

No – All employer contributions and benefit payments from the trust are contributed and received on a tax-free basis.In addition,any trust earnings accumulate and are distributed tax free as well for all “qualified” benefit payments.

What are the components
of the PRIME-Plan trust?

The Trust consists of the following components:

  • Adoption Agreement.
  • Trust Agreement.
  • Funding Account.

What type of Contributions can be made?

The Trust can be funded with any combination of:

  • Employer -Terminal Leave Conversions
  • Mandatory Employee
  • Voluntary Employee – Taxable

What “Qualified” benefits
can be provided?

Trust participants and their qualified beneficiaries are reimbursed for all qualified medical expenses under IRS Code section 213(d).These expenses include:

  • Health Insurance Premiums
  • Medicare Supplemental Insurance
  • Out-of-Pocket Medical Expenses (deductibles & co-pays)
  • Prescription Drugs & Over the Counter Medications
  • Dental Insurance & Expenses
  • Long-Term Care Insurance

How will Medical Expenses be reimbursed?

All participant claims/premiums are reimbursed directly by a national recognized third-party administrator.

What reports will the
participant be provided?

  • Individual account reports.

Participants will receive systematic statements summarizing individual account information from administrator.

  • Claims reimbursement reports.

Participants will receive quarterly claims adjudication reports from the plan administrator.

For more information Contact: Precision Retirement Group, Inc.
National: 800.238.9101
West Coast: 800.369.9461
East Coast: 888.458.3902

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