For over 45 years, PORAC has been assisting members with insurance products; this was accomplished under what was known as the Insurance & Benefits Committee of PORAC. At the time it was established, the committee was composed of four elected committee members and two appointed members. This committee oversaw all of the insurance products that were being offered to all PORAC members.
The committee saw the benefit of expanding the types of products offered to the PORAC members, but that could only be accomplished by forming a trust. On June 21, 1991, with the approval of the PORAC Board of Directors, the Governing Committee of PORAC established the Insurance and Benefits Trust.
The Trust administers various disability, health and life insurance programs. These products were established under the umbrella of what is referred to as a voluntary employees’ benefits association or VEBA under IRS Code 501(a).
The purpose of the Trust is to provide for death, sickness, accident and other insurance benefits to PORAC members and their beneficiaries. Benefits are guaranteed through both fully insured and self-funded products where plan assets are used for the exclusive purpose of providing such benefits.
The current Insurance and Benefits Trust Committee of PORAC is composed of eight elected members and three appointed members for a total of 11 trustees. The Trust office is fully staffed with a manager, an administrative assistant, an insurance services representative, a senior disability claims analyst, four disability claims analysts and a lien recovery specialist. The IBT also contracts with PORAC for some additional administrative services.