Massachusetts’ Dennis-Yarmouth Regional School District joins PCOTCategories: New England Developments,OPEB/GASB 45/75,PARS In the News
Wicked Local by Caitlin Russell on January 26, 2016
The Dennis-Yarmouth Regional School Committee voted to allow the district to join the Plymouth County OPEB Trust Program (PCOT) at its Monday, Jan. 25 meeting.
OPEB stands for “other post employment benefits”, which are benefits paid out to government employees after they’ve stopped working, such as healthcare. OPEB does not include pension funds.
The committee has been considering joining PCOT since Plymouth County treasurer Tom O’Brien presented it with the option at a November 30 meeting. Other options included managing the OPEB account in house, which director of operations and finance Larry Azer says the district is ill-equipped to do, or to participate in a trust run by the state of Massachusetts, which would require a minimum contribution of $250,000 in the first year. PCOT does not have a minimum contribution requirement, and the district can pull out within 30 days without incurring a penalty.
O’Brien assembled the trust with Public Agency Retirement Services (PARS) working as the trust administrator, and U.S. Bank as the trustee custodian/investment manager.
PCOT was initially introduced in Plymouth County’s 27 cities and towns, and has since spread to municipalities in Norfolk, Bristol and Barnstable counties. It has 145 clients, and almost $1 billion in assets.**
**Correction: The Plymouth County OPEB Trust (PCOT) was introduced in June 2015 and immediately available to all public agencies in the Counties of Barnstable, Bristol, Norfolk and Plymouth. As of February 1, 2016, PCOT has 16 member agencies. PARS as a 20 year expert in OPEB trust services, has almost 200 clients nationwide and over $1 billion in assets.