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Colchester Public Schools
2022
The P R I M E -Choice Plan
The Plan is the Gold Level Accumulated Sick Pay Solution
for Colchester Public School Retirees.
Who We Are…
Precision Retirement Group, Inc. (PRG)
PRG is a nationally recognized benefit plan
consulting company, specializing in the
public sector marketplace.
Locally, The PRIME-Choice Plan has
been implemented for Guilford PS,
South Windsor PS, West Hartford PS,
Stratford PS, Trumbull PS and More!
The plans national success dates back to
2002.
Is There a Need for
The PRIME Choice Plan©
Study’s show that a couple can expect to
spend well over $300,000 for out of pocket
medical expenses in retirement.
What is
The P R I M E -Choice Plan
The PRIME-Choice Plan allows the conversion
of accumulated Sick Pay and RIPPs from a
taxable cash distribution to an employer
contribution to one of two post retirement
benefit plans.
Option 1:
Is an Employer Non-Elective 403b
Contribution to the employee’s own 403b plan.
The P R I M E -Choice Plan
The PRIME-Choice Plan adds a
Tax-Free Second Option:
Option 2: The PRIME Plan,
The Medical Expense Reimbursement Trust.
This is an HRA and not an HSA. HRA stands
for Healthcare Reimbursement Arrangement.
The difference is that an HRA can only be
funded with employer funds. An HSA can be
funded by the employee.
The P R I M E -Choice Plan
How is the Employer Contribution determined?
This is done through a Medical Needs Analysis
questionnaire.
With the Employee’s input on their post-retirement needs,
The Medical Needs Analysis allows the Employer to
determine a retiree’s individual post-retirement need,
thereby allowing an employer choice between a
tax-free health benefit or a tax-deferred benefit.
The Medical Needs Analysis
The “Employer” or it’s $ Accumulated Sick Pay
“Representative”
determines a retiree’s The retiree then receives
needs based upon an an employer contribution
objective Medical Needs to either The PRIME Plan or
Analysis. a contribution to the
Special Pay 403(b) Plan
based on the employee’s
answers to the Medical
Needs Analysis.
The PRIME Plan: The Special Pay 403(b) Plan
Medical Expense Reimbursement Trust
The P R I M E Choice Plan
Medical Needs Analysis Questions
1) Do you understand your employer’s post-retirement health insurance
coverage for you, your spouse and your dependents, and all costs to you
associated with this coverage?
2) Are you staying on with the district’s health insurance plan?
3) Does your spouse have health insurance that will cover you in retirement?
If yes, do you have to pay for coverage? Is it pre-tax or post-tax
premiums?
4) Do you have access to other health insurance in retirement?
5) When will you be eligible for Medicare?
6) Is paying for post-retirement health insurance coverage and other post-
retirement healthcare costs for you, your spouse and dependents a concern
of yours in retirement? THE KEY CONSIDERATION FOR A RETIREE
Sample
Medical Need Analysis
Paying Healthcare Costs is a Concern for Retiree #1!
The Employer will make a employer contribution of the retiree’s
accumulated sick pay to The PRIME Plan.
Retiree Benefits
#1: Tax-free reimbursements for after-tax post retirement healthcare
expenses. These include Health Insurance Premiums, Medicare
& the TRB Supplement, Long-Term Care, Co-pays and More!
No Federal or State Income Taxation
No Medicare Taxation
Tax-Free Earnings, 1%
Spouse & Dependent Expenses are Eligible for Reimbursements.
Should participant pass away their Spouse or Dependent can
continue to use the funds for healthcare expenses. Should
there be no Spouse or Dependent the funds revert back to the
employer.
Triple Tax Benefit: Tax Free Contribution, Interest & Reimbursements!
The PRIME Plan:
Affordable Care Act (ACA)
If an employee you returns to work for their
Employer as an employee of the district they
cannot be reimbursed from their account until
they separate from service again.
This is a retiree HRA and not for active
employee use. Being a Substitute Teacher for
the previous Employer is considered an
Employee.
The PRIME Plan:
Reimbursement Process
The Reimbursement Process is very easy. There
is not a Debit Card for the plan.
Most retirees use their funds each month to
reimbursed for premium payments. We can set
the premium reimbursements to occur
automatically each month so you only need to
complete the form once per year.
Savings with the
The P R I M E -Choice Plan
PRIME Plan Special Pay 403b Plan
Accumulated Sick Pay $18,000 $18,000
Federal Taxes (25%) $0 $5,500*
State Taxes (6%) $0 $1,080*
Medicare Taxes (1.45%) $0 $0
Real Tax Savings $6,841 $261
Net Amount Available
For Medical Expenses $18,000 $11,420
* Deferred From Current Year Taxation
The PRIME Choice Plan:
Summary
The PRIME Choice Plan increases the value of an employee’s
Sick Pay having two tax-advantaged options versus one.
The first providing tax-free assets for healthcare
expenses. The second providing tax deferral for
retirement needs.
The district can continue to use its current Special Pay 403b
Plan providers for retirees who don’t need funds for
healthcare expenses in retirement.
The PRIME Choice Plan implemented at no cost to the
district.
The PRIME Choice Plan requires very little work on the
district’s part.
Mark Powers
1-203-589-7008
mpowers@prginfo.net
Thank you