No Set-up Cost of an IRC Section 115 Trust with PARSCategories: National Developments,New England Developments,OPEB/GASB 45/75
PARS Section 115 Combination Trust, in partnership with U.S. Bank and Vanguard, is an innovative, first-of-its kind tool for local governments and school districts to plan ahead and set aside funds for long-term retiree healthcare (OPEB) and/or retirement system costs. The trust is compliant with state and federal law, uses signature-ready trust documents and offers participating employers the added security of a favorable IRS Private Letter Ruling.
But what does it cost to set up this ready-to-go trust with PARS? NOTHING. Setting up your trust with us is FREE!
With our trust program, entities can save $30,000-$50,000 in start-up costs alone, not to mention the ongoing legal and administrative fees that come along with ongoing trust management. Furthermore:
- Fees are based solely on asset balances, so nothing is paid until after receipt of the first contribution
- Fees decrease as assets accumulate due to our tiered, economies of scale pricing structure
- There are no minimum contribution requirements – any amount can be transferred into the trust, at any time
- There are no annual minimums, one-time costs, or termination fees
- Participating agencies benefit from our turn-key, all-in-one approach which eliminates the burden on staff
Prefunding OPEB and/or setting aside funds to prepare for pension contribute rate increases is a prudent, proactive policy that can assist your agency with its long-term fiscal health and is looked upon very favorably by credit rating agencies.
For more information and to get started today, please contact:
Kathryn Cannie, Senior Manager
617.549.6555 | firstname.lastname@example.org