Program Benefits
- Stabilize Costs
Access funds to reimburse your District for pension-related expenses to help offset rising STRS/PERS contribution rates. - Local Control
District maintains autonomy over assets, contributions, disbursements, timing and investment risk tolerance. - Protection
Funds in the trust are securely set-aside and protected from diversion for uses other than pension. - Diversified Investing
Assets in an exclusive benefit trust can be diversely invested and may achieve greater returns than your general fund/treasury pool. - Rainy Day Fund
Emergency source of funds when employer revenues are strained in difficult budgetary or economic times. - Long-Term Planning
Prudent solution for managing ongoing pension liabilities on financial statements due to GASB 68.
Key Advantages of PRSP
- Turn-Key
A simple governance trust structure and full service approach reduces staff and fiduciary burdens. - U.S. Bank
Security of the 5th largest commercial bank and one of the nation’s largest trustees for Section 115 trusts. - Program Pioneer
PARS pioneered the pension prefunding trust in 2015, receiving a first-of-its-kind IRS private letter ruling. - Low-Cost Approach
Economies of scale without risk sharing, low-cost investments, and fees that decrease as assets grow across investment pools. - Investment Flexibility
Partners Vanguard and HighMark Capital Management offer active and index portfolios at a variety of risk tolerance levels. - Personalized Service
PARS and Community College League provide a dedicated and experienced team to serve your ongoing needs.
