12
Aug
2015

PARS Partnering with Community College League of California

Categories: California Developments,Pension Rate Stabilization
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PARS is partnering with the Community College League of California to offer the PARS Pension Rate Stabilization Program (PRSP), an innovative IRC Section 115 irrevocable trust designed to pre-fund pension costs and offset GASB 68 Net Pension Liabilities (NPL). The PARS PRSP allows your district to securely set aside funds, separately and apart from STRS and PERS, in a tax-exempt funding vehicle to mitigate long-term contribution rate volatility. Participating districts maintain local control over assets held in the trust and can determine the appropriate goals and risk tolerance level for the investments.  The PARS PRSP is a creative solution for setting aside and safeguarding the additional state apportionment money that was allocated to your district this year to unofficially help deal with rising STRS and PERS costs.

Why pre-fund your pension obligations in STRS and PERS with the PARS PRSP?

  • Contributions into the trust offset pension liabilities, which will be shown on your district’s financial statements for the first time this year;
  • Assets can be accessed to offset contribution rate increases (rate stabilization) or as a rainy day fund during adverse budgetary or economic conditions;
  • May favorably impact a district’s accreditation and credit rating;
  • Prudent use of apportionment funds by applying them directly toward your district’s increasing retirement costs; and
  • As an irrevocable, exclusive benefit trust, the investment of assets can be diversified in order to achieve a greater rate of return on investments.

Additional features of this cutting-edge program include:

  • Multiple-employer trust structure that brings investment and administrative economies of scale with no risk sharing;
  • Comprehensive, turn-key services that includes consulting, recordkeeping, reporting, compliance, trustee/custodian services, and coordination of investment management;
  • Legally vetted program with IRS Private Letter Ruling;
  • Full flexibility and local control over investment options, including both discretionary and directed trust approaches;
  • Signature-ready documents that enable fast, streamlined implementation process; and
  • Hands-on support from dedicated PARS and CCLC services team

About PARS

For over 30 years, PARS has designed and administered niche retirement plan and trust solutions exclusively for public agencies. As a specialist in program design, analysis, administration, recordkeeping, compliance, consulting, and marketing, PARS administers over 1,400 plans for 785 clients and 375,000 public employees. The California-based company is a leading provider of retirement programs for community college districts and is one of the largest private providers of multiple-employer Section 115 trusts in the nation.

For more information, please contact PARS at (800) 540-6369, ext. 127 or Kimi Shigetani at CCLC at (916) 245-5027 or kimi@ccleague.org.

 

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