Taking the initiative to establish a Section 115 Trust to manage your agency’s long-term Other Post-Employment Benefits (OPEB) and/or pension obligations reflects a commitment to securing both the financial future of your staff and the fiscal health of your agency. But who your agency selects as a trust provider is crucial as it influences the management, security, and performance of your prefund assets.
Below are 6 key factors to consider when selecting or evaluating your Section 115 Trust provider and how PARS excels in each:
1. Fees:
Gain clarity on all costs involved and compare them to other options.
PARS’ Section 115 Trust Program utilizes a clear, comprehensive fee schedule whereby fees decrease as your agency’s assets increase. There are no start-up costs, minimum fees, required contribution amounts, or transaction/trading fees.
2. Performance:
Evaluate and compare investment performance.
The program’s portfolio options include active and passive strategies as well as access to institutional share class funds which can promote a higher return on investments.
3. Administration/Compliance:
Assess the reputability and compliance of your trust.
As the industry pioneer and leader of local government retirement plans and trusts for over 40 years, PARS’ unique and exclusive trust program is IRS-approved and GASB compliant.
4. Flexibility:
Ensure you have options that cater to your agency’s investment needs.
The PARS Section 115 Trust offers a full spectrum of options designed to meet each participating agency’s goals and investment needs.
5. Security:
The strength and security of your trustee are paramount.
PARS’ federally chartered trustee, U.S. Bank, is the largest trustee for Section 115 OPEB and pension funding in the country and is routinely recognized with the highest debt ratings in the industry, ensuring robust security for your agency’s funds.
6. Service:
Your asset size shouldn’t influence how you are treated.
PARS is not a large, bureaucratic pension provider, but rather focuses solely on niche retirement plans and trust programs for cities, counties, special districts, and educational entities nationwide. PARS’ personalized approach ensures that participating agencies benefit from high-quality servicing and concerns/questions are addressed promptly, without layers of red tape.