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In November 1990, the federal government enacted OBRA 90, a new law that mandated Social Security coverage for previously uncovered governmental employees, such as part-time, seasonal, and temporary (PST) workers.  The Public Agency Retirement Services Trust Program (PARS) was established in 1991 to help public agencies meet this requirement.

Initially, PARS provided plans for two California public agencies, State Center Community College District and Huntington Beach City School District.  In the decade that followed, the high quality reputation of PARS grew quickly, as did the scope of the PARS Trust Program, which now encompasses:

Over 250,000 plan participants in more than 400 Public Agencies, including:

  • Cities

  • Counties

  • School Districts

  • Community College Districts

  • County Offices of Education

  • Special Districts

A Full Spectrum of Retirement Programs, including:

  • Retirement Enhancements

  • Retirement Incentives

  • Alternatives to Social Security/FICA and 457 Plans for PST Employees

  • Post-Retirement Healthcare Plans

  • Trusteed 457 Plans

  • Public Agency Retirement Plan Consulting Services

Keys to the Success of PARS

It's not surprising that membership in PARS keeps growing. For PARS participants, the opportunity for a variety of enhanced retirement options is undoubtedly appealing. Additionally, both agencies and employees enjoy the protection of a trusteed retirement program.

Economies of Scale

PARS has several built-in features that add up to significant savings for member agencies. As the trust grows, fees and costs as a percentage of trust assets are reduced. The purchasing power of the combined assets in PARS is extended to each member agency without risk or responsibility for the obligations of other member agencies.

Flexibility + Local Control = Satisfying Benefit Options

PARS offers member agencies flexibility in plan design as well as local control of their plan, beyond the confines of the state and federal retirement systems. Plan designs available through PARS go beyond the limitations of the traditional insurance-based investment products.

Benefits and costs may be specifically tailored and collectively bargained, if necessary, to each agency's unique situation. Unlike retirement programs administered by state systems, PARS is not a "one size fits all" program. The needs of each individual agency are primary considerations in the design and development of each unique retirement program.

Satisfying Benefit Options

PARS offers agencies a wide variety of benefit options designed to meet individual agency and participant needs, including:

  • Lump Sum Distributions

  • Life-time Benefits

  • Life-time with 10 Years Guaranteed

  • Joint and 100% Survivor

  • Fixed Period (5 - 15 Years)

  • Rollover to IRA or another qualified retirement plan

  • Purchase of service credit from another retirement plan (if eligible)

Security

PARS offers a high level of security (as prescribed by law) for every member agency and its participants. Each PARS plan is created as a separate entity, through the PARS Trust Program for the exclusive benefit of participants and their beneficiaries. As such, the plan is fully exempt from the debts of the employer, and benefits are protected for participants to the maximum extent permitted by law.

PARS member agencies can transfer PARS plan investment responsibilities to the PARS corporate trustee, Union Bank of California (UBOC), thereby offering protections to the agency's governing body and plan administrator.

Investment Flexibility

Through PARS, UBOC offers member agencies extensive institutional investment experience, investment diversification, enhanced investment return, and reduced transaction costs. UBOC also offers investment strategies designed specifically for the PARS Trust Program based on the input of member agencies.

IRS Qualification and Compliance

To avoid undesirable legal and tax consequences for participants and agencies alike, governmental plans must comply with strict legal requirements. Tax-qualified governmental plans must meet the requirements of the Internal Revenue Code, particularly Sections 401(a) and 457.

PARS can apply for an IRS letter of Plan Determination on behalf of the agency, and will monitor ongoing compliance requirements for all plans.

"Turn-key" Plan Administration

By delegating plan implementation and ongoing administration to PARS, member agencies gain significant cost savings while simultaneously improving the quality of service to their plan participants.

PARS provides prompt, responsive service to PARS plan participants and PARS agency administrators. Enrollment and administration specialists assist PARS plan participants and answer questions on a variety of retirement program issues, including:

  • Eligibility parameters

  • Distribution options

  • Tax withholding requirements

  • Beneficiary designation procedures

PARS consultants assist agency plan administrators in a variety of areas, providing such services as:

  • Developing plan design options and economic analysis

  • Responding to auditors

  • Preparing and filing required reports

  • Providing insight on state and federal tax compliance issues

  • Lending assistance with domestic relations orders

Plan administrators are also kept up to date on late-breaking legislative developments that have potential impact on their operations, through the PARS Agency Watch and Legislative Alert.

Best of all, PARS is there for you, and has been all along! Since the inception of PARS, we have been a reliable source for answering member agencies' questions and addressing member agencies' needs. As a member of PARS, there's no question of where to turn for answers concerning your PARS plan.

PARS - we work for you!