Montebello Teachers Association Retiree Supplemental Health Plan (MTA- RSHP) (3N)

As you may be aware, Coast Benefits administers the Montebello Teachers Association Retiree Supplemental Health Plan (the “Plan” or sometimes referred to as “Retiree Plan” or “Trust”). In the past year, the Trust has undergone many changes. On April 30, 2025, all contributions to the Trust ceased. As a result, the Board of Trustees of the Trust implemented a temporary suspension of benefits while it conducted an actuarial study. Ultimately, given that no future contributions will be paid into the Trust, the Board of Trustees made the difficult decision to begin winding down the Trust.

The Plan is a VEBA, short for Voluntary Employees’ Beneficiary Association (VEBA), that is tax exempt under section 501(c)(9) of the Internal Revenue Code. The Plan is not an HSA or an FSA.

The Plan will reimburse certain out-of-pocket medical costs, incurred by Participants, that qualify as Covered Expenses (such as Medicare Part B premiums, copayments or coinsurance for doctor’s appointments or hospital stays). Please note that the filing period for retroactive claims related to 2024 and 2025 has closed. At this time, only claims incurred in 2026 will be accepted for review and processing.

Coast Benefits, as a Third-Party Administrator (TPA) operating in the healthcare industry, is committed to adhering to the standards and requirements established under the Health Insurance Portability and Accountability Act (HIPAA).Protecting the privacy and security of personal health information is a fundamental responsibility of our company. We follow strict policies, procedures, and safeguards designed to ensure that sensitive information is handled appropriately and securely. As part of our commitment to compliance, we do not share personal or protected health information except as permitted by law and only when necessary to administer healthcare-related services. We take our privacy obligations seriously and remain dedicated to maintaining the trust and confidentiality of the individuals we serve.
The Montebello Teachers Association Retiree Supplemental Health Plan (MTA RSHP or Plan) is bound by IRS Section 213(d) guidelines, which define qualified medical care expenses. Reimbursements through this Plan must strictly adhere to these definitions to maintain the Plan’s tax-free status. When we request additional documentation, it is intended to protect both you and the Plan by ensuring compliance with IRS Section 213(d) requirements.
Ultimately, the documentation you submit is at your discretion. However, if the documentation does not meet the requirements of IRS Section 213(d), our office will not be able to reimburse the out-of-pocket expense. IRS Section 213(d) guidelines are very strict regarding reimbursement eligibility. Only expenses that are considered medically necessary qualify for reimbursement.

Effective January 1, 2026, the Trust has been redesigned so that participants can receive their Allocated Amount through the payment of Plan benefits. Each Participant’s Allocated Amount as of January 1, 2026, is 44.93% of: the Participant’s estimated total contributions paid into the Plan, minus the estimated total premium reimbursements (if any) that the Participant has already received from the Plan. The Allocated Amount does not earn interest and is not credited with any investment earnings. Retirees with an Allocated Amount of $0 will not be eligible for any further benefits from the Plan.

Please review the Plan Document and Summary Plan Description for Retired Employees – January 2026 (SPD) and Plan Document and Summary Plan Description for Active Employees – January 2026 for a more detailed explanation of the Plan and its benefits, including the Covered Expenses and Allocated Amount. (The SPD is included with your enrollment materials.)

Active Employees need to return the Enrollment Form, Beneficiary Designation Form, and Declaration of Other Group Health Coverage in order to have your account activated with the Trust. If you are Opting Out of this Plan, you only need to return the Opt Out Form to Coast Benefits.

Retired Employees need to return the Enrollment Form and Beneficiary Designation Form in order to have your account activated with the Trust.

Below is a copy of the Actuarial Report that explains the allocation of future benefits and the methodology used in performing the relevant calculations.

The Trust does not provide tax advice. The Trustees and Coast Benefits do not provide tax advice either. You should consult with your tax professional and provide copies of the appropriate Plan Document/SPD along with the Actuarial Report Appendix A, including Charts 1 and 2, as applicable to you.

Actuarial Report HERE

For benefits questions please call:

To update your bank account with the Trust, please log on to the Plan portal and make your changes there. If you are unable to make the change on the portal , please fill out the following Bank Authorization ACH Form and send it to the Trust Office (see form for details).