No Set-up Cost of an IRC Section 115 Trust with PARS

Categories: National Developments,New England Developments,OPEB/GASB 45/75
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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 | kcannie@pars.org