Solano County OKs PARS trust to Deal with Retirement CostsCategories: California Developments,PARS In the News
Daily Republic by Kevin W. Green, February 11, 2015
The Board of Supervisors took another step Tuesday in dealing with Solano County’s retirement costs with the California Public Employees’ Retirement System.
County supervisors voted unanimously to set up a special trust for post-employment benefits.
The trust will provide savings, while giving more control over assets, according to a staff report. To reduce pension liability, the county can either pay additional funds to CalPERS directly or create a trust to pre-fund its CalPERS unfunded liability, the board was told in the report.
A retirement trust allows greater local control over assets, with future contributions transferred to CalPERS at the county’s discretion, the report said. Payments into the trust will bring down the unfunded liability of the county and will reduce the future employer retirement rates, the report said.
Supervisors commended the county’s debt advisory committee for its work in preparing the report and its recommendation for the trust.
“A trust gives the board more flexibility than it has now,” Supervisor Skip Thomson said.
Supervisor John Vasquez also thanked the staff for recommending the change.
“I’m glad to get away from the pay-as-you-go approach,” he said.
Board Chairwoman Erin Hannigan agreed.
“We now have a control,” she said.
Once the trust is established, the board can transfer the current CalPERS reserve of $19 million to the trust account, the report said