The Trust OPEB Funding Program

The Trust OPEB Funding Program Overview

In partnership with Public Agency Retirement Services (PARS), The Trust has established a comprehensive and cost-effective Other Post Employment Benefits (OPEB) Funding Program. Under a common administrative framework, The Trust OPEB Funding Program provides participating Members with a trusted solution to proactively address their OPEB liabilities and risks.  

It is structured as a multiple-employer, irrevocable trust in accordance with Section 115 of the Internal Revenue Code and is compliant with federal and state laws and regulations.  

Participating Members gain the advantage of a low-cost fee structure, based on a percentage of assets, that decreases as assets grow. And although assets are pooled for economies of scale, there is no cross sharing of earnings or liabilities. Each Member maintains their own separate accounts providing full discretion regarding contribution amounts and timing. 

US Bank serves as the trustee handling contribution and disbursements, while also ensuring the trust is administered in accordance with the trust agreement and operates for the exclusive benefit of retirees, employees and beneficiaries

Vanguard serves as the investment manager offering three investment pools, specifically developed for OPEB Trust funding

Benefits include:

  • COMPREHENSIVE SERVICE AND SUPPORT - The Trust’s OPEB Funding Program is available to all Rhode Island municipalities and school districts. The Trust will provide legal and compliance oversight, as well as full service and support for Member entities within this Program.
  • STRENGTH IN NUMBERS - Under a common administrative framework, The Trust OPEB Funding Program provides participating Members with a trusted solution to proactively address their OPEB liabilities and risks that is far more economical and efficient than each local governmental unit attempting to coordinate the same independently.
  • FLEXIBILITY AND CONTROL - Each Member maintains their own separate accounts providing them with full discretion regarding their contribution amounts and timing.
  • ONGOING COMPLIANCE - The Trust OPEB Funding Program is structured as a multiple-employer trust in accordance with Section 115 of the Internal Revenue Code. It complies with GASB 45 as an irrevocable exclusive benefit trust solely to fund retiree health care benefits.
  • PUBLIC SECTOR EXPERTISE - The Trust has the distinction of being the only insurance and risk management organization in Rhode Island that has the staff expertise, experience and tools necessary to provide public sector entities with a highly-focused program, coverage and service.
  • LOWER FEES AND COSTS - The Trust OPEB Funding Program offers a low-cost fee structure based on a percentage of assets. Each Member benefits from the economies of scale that develop over time as more and more Members participate in the Program.

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