Client Spotlight: Town of Clifton, AZ
With its Public Safety Personnel Retirement System (PSPRS) funded ratios at just 20.4% for the Fire Department and 72.3% for the Police Department, the Town of Clifton‘s need for a sustainable solution in managing its pension liabilities became increasingly evident back in June of 2022. After researching possible solutions and holding thorough internal discussions, Clifton’s Council decisively adopted […]
The Dual Nature of a Section 115 Trust to Address Long Term Liabilities
Post employment benefits, including pension and other post-employment benefits (OPEB), are often some of the largest line item expenditures for local governments nationwide. Costs can be unpredictable and often rise from year-to-year. One way agencies or districts can initiate some control over these expenditures is by adopting and diversely investing assets into an IRC Section 115 […]
Public Pension Challenges: Section 115 AEPPP Trust’s Role in Risk Mitigation and Strategic Financial Planning
Strategic financial management in local government revolves around the intricate balance of maximizing revenues and judiciously controlling expenses. This delicate equilibrium is crucial for enabling transparent, future-oriented financial planning, providing for resiliency, and ensuring consistent financial resources for improving levels of services provided to citizens. To safeguard this balance, risk mitigation becomes imperative, acting as […]
Public Pension Challenges: The Role of the Section 115 Trust in Risk Mitigation and Strategic Financial Planning
Strategic financial management in local government revolves around the intricate balance of maximizing revenues and judiciously controlling expenses. This delicate equilibrium is crucial for enabling transparent, future-oriented financial planning, providing for resiliency, and ensuring consistent financial resources for improving levels of services provided to citizens. To safeguard this balance, risk mitigation becomes imperative, acting as […]
Making Cents of Implicit Subsidy Liabilities: An Imperative Case for Pre-Funding OPEB in Texas
In the complex landscape of municipal finance, unique challenges constantly arise. Among these, a particularly significant concern for Texas municipalities pertains to Other Post-Employment Benefits (OPEB), specifically the implicit subsidy liabilities. This financial quandary emerges when active employees and retirees share the same healthcare plan, inadvertently leading to inflated average costs for the employer.