Dec
2020
First-of-its-kind Section 115 Pension Pre-funding Trust Now Offered in Florida
Categories: National Developments,PARS News,Pension Rate StabilizationPublic Agency Retirement Services (PARS) is excited to bring to Florida local governments for the first time our unique, IRS-approved Pension Prefunding Trust Program, in partnership with Vanguard and U.S. Bank. PARS pioneered the trust concept in 2015 with the first IRS Private Letter Ruling on a multiple employer Section 115 trust for local governments to set aside funds for future pension costs and/or retiree healthcare costs (OPEB).
read more...Dec
2020
Managing Pension Costs in Arizona with a Section 115 Prefunding Trust, POBs or COPs
Categories: National Developments,PARS News,Pension Rate StabilizationWhether issuing Pension Obligation Bonds (POBs) or Certificates of Participation (COPs), an IRS Section 115 PARS Pension Prefunding Trust, in partnership with Vanguard and U.S. Bank, is a great new option in Arizona to address PSPRS, ASRS or any retirement system costs over the long term.
read more...Oct
2020
Is Your City Really Prepared for Rising Pension Costs?
Categories: California Developments,PARS News,Pension Rate StabilizationFor the past several years, the City of Sausalito considered its rising pension obligations very seriously and continually examined all options to reduce pension liabilities and annual costs. Consequently, Sausalito implemented several policies for reform that focused on the variables that the city could control. But even all those improvements could not mitigate the rate and unfunded liability volatility from one CalPERS actuarial report to the next; there were just too many variables outside the city’s control. To stabilize rates charged to the city’s General Fund, the city’s Finance Committee looked at developing a pension funding methodology.
read more...Sep
2020
Despite Palo Alto’s Pension Liabilities Increasing, Prefunding with PARS Aiming to Pay Off 90% in 15 Years
Categories: California Developments,PARS News,Pension Rate StabilizationThe 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...Jul
2020
Don’t Overlook this Fiscal Tool in Challenging Times: Voluntary Separation Incentives
Categories: Early Retirement Incentives,National Developments,PARS NewsAs a result of the COVID-19 pandemic, school districts throughout Connecticut face the paradox of decreasing budgets, due to state and local revenues losses, and increasing costs, due to safety mitigation in transportation, sanitization, temperature checks, personal protective equipment, and technology. With mounting pressure, many school districts are being asked to evaluate layoffs, furloughs, or other austerity measures to create savings. Another option that Superintendents should consider are district-controlled voluntary separation incentives.
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