Contra Costa Mosquito & Vector Control District Chooses the Advantages of the PARS OPEB TrustCategories: Hot Sheets,OPEB/GASB 45/75
Contra Costa Mosquito & Vector Control District wanted to be proactive in addressing its future retiree health obligations. After determining its unfunded liability, the District began exploring suitable pre-funding options. The District found that the right solution was participating in the multiple-employer GASB 45-compliant PARS OPEB Trust Fund, which more than 90 agencies have joined.
“A major advantage of the PARS OPEB program is the ability to earn higher returns on investments than with our general fund, which lowers our liability,” says Craig Downs, Contra Costa Mosquito & Vector Control’s General Manager. “The flexibility the District has with PARS allows us to tailor our investments based on our risk tolerance and gives us local control over actuarial assumptions.”
The purpose of the PARS OPEB Trust is to accumulate, hold and distribute assets for the exclusive benefit of retirees and their beneficiaries. Plan assets are irrevocable and may not be used for any purpose other than funding post-retirement healthcare. The Trustee, Union Bank, protects the assets, and their wholly-owned subsidiary, HighMark Capital Management, actively manages plan assets consistent with each agency’s long-term investment goals to achieve the greatest rate of return. The higher the rate of return, the lower the overall cost to Contra Costa Mosquito & Vector Control District.
Key Advantages of the PARS OPEB Trust
PARS is an experienced trust administrator and not a broker. With Union Bank as the trustee and HighMark Capital Management as the investment manager, the PARS OPEB Trust provides every agency with security and flexibility. The PARS/Union Bank team are the full-service leaders in OPEB and have been providing their services for 15 years – longer than anyone else.
PARS’ goal is to reduce an agency’s administrative, compliance and fiduciary burden. PARS is an experienced leader in designing, implementing and administering retirement and OPEB plans for governmental agencies.
The IRS-approved 115 PARS Trust ensures security by employing a corporate trustee that, at the direction of the agency, will assume fiduciary responsibility for plan investments. For risk-conscious public agencies, this protection transfers liability for investment decisions from the agency’s Governing Board and Plan Administrator to professionals who are experienced, licensed, regulated and insured.
The PARS Trust offers an agency maximum flexibility in terms of contributions and funding, while offering the administrative, compliance, and investment economies of scale of a multiple employer trust.
Contact us today to see how PARS can help your agency.