What is a Legally Compliant OPEB (Retiree Healthcare) Trust in Texas?Categories: OPEB/GASB 45/75,PARS News,Texas Developments
Prefunding retiree healthcare (OPEB) benefits through a legally compliant trust can help entities lower long-term OPEB liabilities, preserve positive credit ratings and generate investment income through diversified investing. But these benefits can only be realized if the OPEB trust is in compliance with GASB 45/75 rules as well as Texas and federal law.
To be legally compliant, it is important to remember that the trust must:
- Be irrevocable
- Be dedicated to retiree healthcare benefits only
- Not be accessible to creditors
- Have dedicated and signed trust documents that establish how the trust will be governed
With 20+ years of OPEB trust administration experience and over 300 clients, PARS’ comprehensive OPEB trust program already complies with each of the requirements listed above. Our signature-ready implementation documents have received an IRS Private Letter Ruling, and have been reviewed by attorneys both in Texas and nationwide. Additionally, we provide ongoing compliance monitoring to reduce the burden, costs and workload on participating agency staff.
To learn more about the PARS OPEB Trust Program and to begin the process of addressing your agency’s long term retiree healthcare liabilities, please contact:
Dion Papafote, Senior Manager
(512) 415-6874 | firstname.lastname@example.org