The PARS OPEB Trust Program: A Comprehensive Approach for Texas

Categories: OPEB/GASB 45/75,PARS News,Texas Developments
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Prefund Your Agency’s OPEB Liabilities Today with Texas’ Most Experienced Full-Service Provider

The start of the year is a time to restart the budgeting process. As you start to look at your 2020/21 finances, once highly recommended course of action is to set aside funds in a trust to prefund long term retiree healthcare liabilities. PARS’ unique and industry-leading approach to OPEB prefunding has been minimizing the workload, burden and risks for our clients for over 15 years.

Our program includes:

  • Economies of Scale – Put simply, your fees go down as the entire trust grows. Due to the continued growth of the PARS OPEB Trust Program, our members benefit from economies of scale which lowers fees and delivers ongoing price reductions as assets in the program grow.
  • Proven Investments – We offer both pooled and customized investment options designed specifically for OPEB investing. These portfolios have seen strong, historical returns with portfolio choices for an array of risk tolerance.
  • Administration & Oversight – PARS provides ongoing management and oversight of the OPEB trust and your account. Our services include document development/management, personalized consulting, ready-to-go implementation, accounting & reporting, and hands-on support whenever you need.
  • Trustee Services – U.S. Bank provides fiduciary protection for your Agency to ensure the trust is managed without conflict for the exclusive benefit of employees, retirees and beneficiaries. U.S. Bank also brings additional security as the largest trustee and custodian of OPEB assets in the nation.
  • Ongoing Compliance Monitoring – We maintain considerable focus on monitoring trust and document compliance with IRS and GASB rules, as well as federal and Texas state laws.
  • Option to Prefund Pension – PARS’ program is structured as a unique, industry-leading “combination” trust which allows for the prefunding of both OPEB and/or pension liabilities. Our innovative trust design helps clients to efficiently and comprehensively address their long-term retirement costs, and is currently the only program of its kind in Texas.

Already serving over 400 agencies nationwide, PARS’ 115 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.

For more information, please contact:

Dion Papafote, Senior Manager, Texas
(512) 415-6874  |  dpapafote@pars.org