The Cities of Alameda and Elk Grove Join the PARS OPEB Trust ProgramCategories: California Developments,Hot Sheets,OPEB/GASB 45/75
The Island City
Founded in 1853, the City of Alameda has enjoyed a rich history as a resort destination in the early 1900s, home to a key naval base during wartime, and more recently as one of the few Coast Guard Cities designated by Congress. Today, the city credited with selling the first popsicle, still enjoys a small town feel within the expansive East Bay.
But, along with a long history of cityhood, comes built-up retiree obligations. In 2012, the City formed a taskforce to review among other things, how to address OPEB liabilities. By 2013 the general consensus was that a mere “pay-as-you-go” method was an unwise long-term approach.
Having already worked together on previous retirement solutions, Alameda asked PARS about possible OPEB prefunding options. While the City heard about the many features of the PARS OPEB Trust program, they were especially drawn to PARS’ ability to be more flexible and more responsive than other competitors, and how PARS was a direct trust administrator rather than a broker.
Alameda completed its due diligence by researching other options, and in the end chose the PARS OPEB Trust program.
Proud Heritage, Bright Future
While holding the designation of the first city in California to incorporate in the 21st century (July 2000), Elk Grove’s origins can be traced back to a stage coach stop in the 1850’s and its role in the gold rush. This pioneering culture continues today as new challenges arise to be faced.
When GASB 45 standards went into effect in 2008, Elk Grove proactively adjusted benefits for new hires to reduce their OPEB liabilities. When it was determined that the City’s remaining OPEB liabilities began needing attention, Elk Grove moved forward to establish a prefunding plan of action.
Elk Grove’s dutiful search led them to PARS where they were attracted by their simple administrative processes, outstanding service, and flexible investment strategies. These combined with PARS’ 18 years of established OPEB Trust experience, an IRS compliant 115 Trust, and no sharing of liabilities, assets, or investment earnings among trust members led the City Council to unanimously vote in favor of joining the PARS OPEB Trust. Over 140 agencies are prefunding into their OPEB trusts.
Whether your agency is nearing its 162nd or 15th year anniversary, an OPEB prefunding plan of action should be right for you. For any questions or to request a complimentary proposal, contact PARS at (800) 540-6369 or email@example.com and begin the steps to lowering liabilities by 30-40% and ensuring your agency’s bright future.