PARS First-of-its-Kind Section 115 Pension Funding Trust Now Offered NationallyCategories: National Developments,PARS News,Pension Rate Stabilization
Public Agency Retirement Services (PARS) is excited to announce the expansion of its unique, IRS-approved Section 115 Pension Rate Stabilization Program across the country.
Designed in 2015, this industry-leading program operates separate and apart from an agency’s retirement system, providing local governments with a tool to set aside funds for future pension costs and liabilities. Already serving over 200 public agencies, PARS’ program is a low cost, legally compliant trust vehicle that is locally controlled and ready-to-go.
How Can Assets in the Trust Be Used?
Assets in the trust can be invested in a diversified manner and can be used to pay out directly to your retirement system or reimburse your entity for pension related costs.
Why Use the PARS Section 115 Trust to Prefund Pension Costs?
- Assets in the trust can be used to offset contribution rate increases or as an additional source of funds during tough budget times
- A variety of low cost investment options with strong historical returns are offered by industry leaders, Vanguard, U.S. Bank and HighMark
- Assets are held securely by U.S. Bank, the nation’s fifth largest bank
- The ability to diversify investments is likely to result in better returns than your general fund or reserve account
- Hands on support and management is provided by PARS, the nation’s pioneer of Section 115 pension funding
- The trust can be used to help improve your funding ratio, and is considered favorably by credit rating agencies
Don’t wait for your liabilities to keep growing – take action now!
For more on this unique, industry-leading program, please contact:
Maureen Toal, Senior Vice President