Pension Rate Stabilization Program
PARS-CCLC Pension Rate Stabilization Program (PRSP)
A Comprehensive, Turn-Key Pension Prefunding Solution
The League, in partnership with PARS (Public Agency Retirement Services), is proud to offer the Pension Rate Stabilization Program (PRSP), an innovative IRC Section 115 irrevocable trust designed to help community college districts manage their pension costs through prefunding. The PRSP allows your district to securely set aside funds, separate and apart from STRS and PERS, in a tax-exempt, IRS-compliant prefunding vehicle to mitigate long-term contribution rate volatility.
Each district maintains local control over assets held in the trust, can diversify investments to earn potentially greater returns than from state or county treasury pools, and can determine the appropriate investment goals and risk tolerance level with specially designed low cost investment pools.
- Assets can be accessed at any time to offset contribution rate increases (rate stabilization) or as a rainy day fund during adverse budgetary or economic conditions
- Allows prudent use of apportionment funds or one time funds to address your district’s increasing retirement costs
- Protects funds from diversion to other uses
- Accumulated assets in the trust address pension liabilities, which are shown on your district’s financial statements due to GASB 68
- May favorably impact a district’s accreditation and credit rating
Key Advantages of PRSP
- Comprehensive, turn-key services that include consulting, recordkeeping, reporting, compliance, leading trustee/custodian services and investment management
- Investment and administrative economies of scale with no risk sharing
- Legally-vetted program with exclusive first-of-its-kind IRS Private Letter Ruling
- Full flexibility over investment options including fixed income only, conservative, balanced and growth options, directed and discretionary
- Signature-ready documents that enable quick, streamlined implementation process
- Hands-on support from dedicated PARS and CCLC service teams
- Low cost investment management with fees that decrease as assets grow in each pool
Public Agency Retirement Services (PARS) is a leader in custom and turn-key public agency and community college district retirement programs. For over 30 years, PARS has been the trusted source for retirement solutions that meet the unique needs of each public agency they serve. Known for its high-level of partnership and service as well as for the quality and security of its program designs, PARS fosters a collaborative and responsive relationship from consultation, design and analysis through implementation and administration. PARS pioneered the PRSP concept and obtained a first-of-its-kind Private Letter Ruling from the IRS in 2015. Since then, over 65 public agencies in California have joined PRSP including colleges, school districts, cities, counties and special districts. As a specialist in retirement program design, implementation and ongoing administration, PARS administers more than 1,600 plans for over 850 clients and 400,000 public employees.
PARS (Public Agency Retirement Services)
Eric O’Leary, ext. 124
Maureen Toal, ext. 135
Natasha Davidson, ext. 145
Lizette Navarette, 916-245-5040