Pension Rate Stabilization
Despite Palo Alto’s Pension Liabilities Increasing, Prefunding with PARS Aiming to Pay Off 90% in 15 YearsCategories: California Developments,PARS News,Pension Rate Stabilization
The city of Palo Alto’s unfunded pension liability has increased by 4.7% to $476 million. However, that doesn’t reflect the city’s effort to hedge against the liability by putting money into a side trust for pensions. Formally known as a PARS Section 115 Trust Fund, it aims to pay off 90% the city’s unfunded pension liability in 15 years.read more...
The start of the year brings with it new goals, new ideas, and new CAFR reports. With updated CAFR results now published, local governments can make decisions on how to use potential surplus and/or reserve funds in planning for the next fiscal year. One highly recommended use of additional money is to set aside funds in a trust to prefund long term liabilities such as pension (Pension Rate Stabilization Program - PRSP) and retiree healthcare (OPEB).read more...
PARS is excited to announce the expansion of its unique, IRS-approved Section 115 Pension Rate Stabilization Program across the country. Designed in 2015, this industry-leading program operates separate and apart from an agency's retirement system, providing local governments with a tool to set aside funds for future pension costs and liabilities.read more...
The start of the year is a time to restart the budgeting process. As you start to look at your 2020/21 finances, one highly recommended course of action is to set aside funds in a trust to prefund long
Setting aside money (prefunding) into an Internal Revenue Code (IRC) Section 115 trust is a proven, effective way to proactively address growing pension contribution rates and liabilities. The PARS Pension Rate Stabilization Program (PRSP) allows cities to securely set aside funds, separately and apart from their retirement system, in a tax-exempt funding vehicle to mitigate long-term contribution rate volatility.read more...