Pension & OPEB in One Trust

Categories: National Developments,New England Developments,OPEB/GASB 45/75,PARS News,Pension Rate Stabilization
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The PARS Post Employment Benefits Trust

Public Agency Retirement Services (PARS) offers public agencies a first-of-its-kind Section 115 Post-Employment Benefits Trust to set aside and invest funds for retiree health care (OPEB) and/or pension in one trust, while providing economies of scale for investment, administrative, and trustee services.

Since receiving an IRS Private Letter Ruling in 2015, over 260 public agencies have joined this PARS trust program – the only trust available nationally for both OPEB and pension.

Trust assets are locally controlled and separate from your retirement system(s). Funds for OPEB and retirement system(s) are held in separate accounts and can have different investment strategies, but assets are aggregated for fee purposes.

Trust assets can be used to pay the retirement system or reimburse the agency for post-employment expenses.

This program is brought to you in partnership with Vanguard Institutional Advisory Services Pension Group and U.S. Bank who provide investment advisory/management services.

The PARS Section 115 trusts have grown to over $5 billion in assets with over 440 clients funding either pension, OPEB or both across 10 states.