Retiree health for Hanford PD: who pays after you retire
You do. Under MOU sections 2.28 and 2.40, retiree medical is funded by officers only, through the PORAC Retiree Medical Trust, with no City contribution.
At a glance
- The City does not pay for your health insurance in retirement.
- Officer contributions fund the PORAC Retiree Medical Trust.
- The earlier you retire, the more years before Medicare at 65 you cover yourself.
- If you are on the high deductible plan, an HSA can hold money for those years.
Who this is for: A Hanford PD officer planning a retirement date, and a spouse who will share the health insurance bill.
Reviewed by Theron Morgan, CEO and founder, Avidity Capital Inc., a registered investment adviser, on 2026-10-07.
What the MOU says
MOU sections 2.28 and 2.40 make retiree medical something officers fund themselves. Officer contributions go into the PORAC Retiree Medical Trust, and the City adds nothing. The trust's own rules set what it pays and when.
While you work, the City pays 60% of the PPO premium for you and your dependents (MOU section 2.15). That stops when you retire. Ask Human Resources whether you can stay on a City plan in retirement and what it would cost.
The years before Medicare
Medicare starts at 65. A safety officer can retire years before that, and every one of those years needs health coverage you arrange and pay for, for you and anyone on your plan.
Health insurance in those years usually costs more than people expect, and it tends to rise faster than other prices. Put a real number on it before you pick a retirement date.
If you are on the high deductible plan
An HSA can hold money for those years. For federal tax, money goes in pre-tax, grows, and comes out tax-free for medical costs, including many costs in retirement. California does not follow those rules and taxes HSA contributions and earnings, so the benefit is federal only.
What the app does
The retirement plan in the app carries a monthly health care cost on top of your spending and grows it faster than other prices, so the years before Medicare are in the plan instead of left out.
Questions people ask
Does the City pay for my health insurance after I retire?
No. Under MOU sections 2.28 and 2.40, retiree medical is funded by officers only, with no City contribution.
What is the PORAC Retiree Medical Trust?
A trust funded by officer contributions that helps pay health costs in retirement. Its own plan rules set what it pays.
When does Medicare start?
At 65. Until then, coverage is yours to arrange.
Is an HSA tax-free in California?
No. California taxes HSA contributions and earnings. The tax benefit is federal only.
Next step
See your own numbers first. The free reality-check needs no account and no card.
This page is education, not individualized investment, tax, legal or insurance advice. It names no products, funds or allocations and carries no client stories. Where a document or a policy is needed, an estate attorney or a licensed insurance agent is the person who prepares it. Avidity Capital Inc. drafts no legal documents and receives no commission or referral fee from insurance, estate attorneys, mortgage lenders or real estate agents. Its compensation is the member's subscription and, for members who choose it, an advisory fee for managing assets; see Form CRS and Form ADV Part 2A. Avidity Capital Inc. is a registered investment adviser.