Pension Rate Stabilization
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).read more...
Whether issuing Pension Obligation Bonds (POBs) or Certificates of Participation (COPs), an IRS Section 115 PARS Pension Prefunding Trust, in partnership with Vanguard and U.S. Bank, is a great new option in Arizona to address PSPRS, ASRS or any retirement system costs over the long term.read more...
For the past several years, the City of Sausalito considered its rising pension obligations very seriously and continually examined all options to reduce pension liabilities and annual costs. Consequently, Sausalito implemented several policies for reform that focused on the variables that the city could control. But even all those improvements could not mitigate the rate and unfunded liability volatility from one CalPERS actuarial report to the next; there were just too many variables outside the city’s control. To stabilize rates charged to the city’s General Fund, the city’s Finance Committee looked at developing a pension funding methodology.read more...
Despite Palo Alto’s Pension Liabilities Increasing, Prefunding with PARS Aiming to Pay Off 90% in 15 YearsCategories: California Developments,PARS News,Pension Rate Stabilization
The city of Palo Alto’s unfunded pension liability has increased by 4.7% to $476 million. However, that doesn’t reflect the city’s effort to hedge against the liability by putting money into a side trust for pensions. Formally known as a PARS Section 115 Trust Fund, it aims to pay off 90% the city’s unfunded pension liability in 15 years.read more...
The start of the year brings with it new goals, new ideas, and new CAFR reports. With updated CAFR results now published, local governments can make decisions on how to use potential surplus and/or reserve funds in planning for the next fiscal year. One highly recommended use of additional money is to set aside funds in a trust to prefund long term liabilities such as pension (Pension Rate Stabilization Program - PRSP) and retiree healthcare (OPEB).read more...