The California Association of Professional Employees (CAPE), together with the Coalition of County Unions (CCU), is moving into a major new phase of retiree healthcare protection for Plan G employees.
Beginning with the December 15, 2025 County paycheck, a $25 per pay period ($50/month) contribution to the LACCU Retiree Medical Trust will begin for all Plan G employees in participating bargaining units.
While this is an administrative change on your paycheck, it represents the culmination of more than a decade of work to protect and strengthen retiree medical security for current and future employees.
Background: How We Got Here
In 2013, CAPE members and other County unions successfully pushed back against severe County proposals to cut retiree medical benefits. That fight made it clear that a new, sustainable model was needed—especially for employees hired on or after July 1, 2014, who would not receive a County-subsidized retiree medical benefit.
In the years that followed, CAPE worked through the CCU to design a long-term, affordable, and union-controlled solution: the LACCU Retiree Medical Trust.
After extensive negotiations, legal and actuarial work, and a membership vote, the Trust was established as a protected benefit to help future retirees cover healthcare costs, particularly in the years before Medicare begins. With the Trust now fully structured and operational, it is moving into its funding phase, which requires mandatory participation from all Plan G employees in participating bargaining units.
Key Benefits of the Retiree Medical Trust
Once you are vested (after five years of contributions) and separate from County service, the Trust provides lifetime monthly reimbursement benefits, subject to plan rules.
Lifetime Monthly Reimbursement Benefits
Eligible retirees receive monthly reimbursements for actual medical expenses, up to their calculated benefit level.
What’s Covered?
Reimbursable expenses may include:
- Medical, dental, and vision insurance premiums
- Deductibles, copays, and other out-of-pocket costs
- IRS-approved medical expenses (see IRS Publication 502)
- Long-term care insurance
- Eligible expenses for your spouse and dependent children
Survivor Benefits
Subject to plan rules, spouses and dependent children may be eligible to receive benefits after a participant’s passing.
This structure is designed to:
- Strengthen retirement security for Plan G employees
- Provide a safety net during the high-cost, pre-Medicare years
- Create greater fairness across generations of County employees
FAQs: Plan G Contributions to the Retiree Medical Trust
Why is this contribution mandatory?
Plan G employees do not receive County-subsidized retiree medical benefits. For the Trust to remain affordable and actuarially sound, it requires universal participation by Plan G employees within each participating bargaining unit.
Did CAPE members vote on this?
Yes. CAPE members reviewed and approved this retiree medical solution as part of a coordinated CCU effort to protect access to healthcare in retirement, particularly for employees hired after July 1, 2014.
Why is this happening now?
After the County attempted severe retiree medical cuts in 2013, unions fought back and negotiated a sustainable replacement model. The Trust then required several years of legal, financial, and administrative setup. That work is now complete, and the funding phase can begin.
How much will I pay?
Plan G employees will contribute $25 per pay period ($50/month), automatically deducted starting with the 12/15/2025 paycheck.
When do I vest?
You vest after five years of contributions. Once vested and separated from County service, you become eligible for lifetime reimbursement benefits, according to plan rules.
What if I leave before 5 years?
If you leave County service before vesting, you become an Account Beneficiary. You may use the value of your contributions (plus investment earnings or losses) to reimburse eligible medical expenses until your account balance is exhausted.
Will this help before Medicare?
Yes. The Trust is designed specifically to help cover healthcare costs in the pre-Medicare “gap” years, which are often the most expensive for retirees.
Who to Contact with Questions
For specific questions about eligibility, benefits, or claims, please contact:
LACCU Retiree Medical Trust
c/o Benefit Programs Administration (BPA)
(833) 504-3964
[email protected]
For general questions about CAPE’s role and ongoing benefits advocacy, CAPE members may contact the CAPE office directly.
