First-of-its-kind Section 115 Pension Pre-funding Trust Now Offered in Florida

Categories: National Developments,PARS News,Pension Rate Stabilization
Print Friendly, PDF & Email


Public 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).

Serving over 230 cities, counties, special districts, and educational entities, PARS’ trust is a low cost, Florida law compliant, locally controlled funding vehicle that operates separate and apart from your retirement system(s).

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.

Use the PARS Section 115 Trust to Prefund Pension Costs to:

  • Diversify investments (per FL law) for greater long term returns than general fund or reserve account
  • Protect assets from diversion from other uses in a dedicated trust
  • Create a rainy day trust to access during difficult economic or budgetary conditions
  • Also prefund retiree healthcare/OPEB costs with assets sub-accounted for separately, but combined for fees
  • Select from low-cost, economies of scale investment options offered by industry leaders, Vanguard and U.S. Bank
  • Maintain security of assets from the nation’s fifth largest bank
  • Use only such trust/documents vetted for FL law by Lewis, Longman & Walker
  • Prudently manage pension obligations with trust considered favorably by credit rating agencies
  • Obtain turn-key services and support from the nation’s most experienced Section 115 trust administrator

For more on this unique, new trust program, please contact:

Maureen Toal, Senior Vice President
844.540.6732 | mtoal@pars.org