Budgeting for Long Term Financial Success in PennsylvaniaCategories: National Developments,OPEB/GASB 45/75,Pension Rate Stabilization
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 term liabilities such as pension and retiree healthcare. For the majority of agencies, these costs continue to rise, and the only way to ensure long-term fiscal sustainability is to take action now.
Whether you already have a trust with another provider, or need to set one up, you should consider PARS’ unique, full service locally controlled, supplemental trust approach, offered in conjunction with Vanguard and U.S. Bank that can be used to manage both OPEB and/or pension costs.
- Smooth out pension or retiree healthcare rate increases
- Diversify investments and achieve higher returns than your general fund or reserve account
- Serve as a rainy day fund during adverse financial times
- Improve your entity’s funding level
- Protect funds from diversification towards other uses
Already serving over 400 agencies nationwide, PARS’ Combination Trust brings numerous advantages and is the solution that can help to relieve fiscal pressure and positively impact the budget for many years to come.