PEB Trust of Texas is a Multi‐Employer Trust tailor-made for Texas governments, allowing them to conveniently prefund Other Post- Employment Benefit (OPEB) liabilities. Public entities of all sizes are now required by GASB 43/45 to report OPEB liabilities on their financials. Prefunding toward future OPEB costs such as retiree medical expenses can:

• Reduce balance sheet liabilities
• Reduce long-term cost of providing benefits
• Be a positive rating factor with rating agencies
• Insulate employers from unexpected fluctuations in benefit costs, economic downturns or natural disasters

• Fast Implementation. Start making contributions within one week after adoption, not several months.
• Simple Execution. PEB Trust provides everything you need—including counsel, auditors, investment consultants, risk pool and IRS private letter ruling—so RFPs are virtually eliminated.
• Reduced Expense. PEB Trust members typically pay lower fees through cost sharing.
• Flexibility. Change your involvement, investment consultants, asset managers, investment policies, or asset allocations at any time.
• Knowledgeable Providers. All PEB Trust providers are knowledgeable about OPEB and public entities, not private entities or defined contribution plans.
• Vast Investment Management Experience. Investment consultants Mercer and Milliman together have over $3 trillion in tax-exempt assets under management. Or choose your own counsel.
• Local Service Providers. PEB Trust providers operate Texas offices and most are based in Texas.
• Governed by Texas Law. PEB Trust contracts are governed by Texas law, not other states' laws.
• Separate Accounts. Each PEB Trust member has a separate account, and there is no pooling of investments with other members. All members are from Texas.
• Real-Time Online Data. Real-time account data is available online for planning, budgeting, and council or board meetings.
• Additional Safeguards. Client accounts are covered by the Securities Investor Protection Corporation (SIPC) and excess SIPC insurance. Cash is invested in an FDIC-insured sweep program.*
• Conflict Avoidance. PEB Trust strives to avoid conflicts of interest in investments, administration, and performance reporting. Investment consultants and other providers are screened by PEB Trust and confirmed by its board of trustees.
• Compliance. Close attention has been paid to compliance with state and federal laws and numerous securities, banking and audit company regulations.
• Complete Audit. Unlike other multi-employer trusts, PEB Trust is audited in full by experienced auditor Weaver & Tidwell, ensuring all funds are properly accounted for at the full trust level.
• Rollover from Other OPEB Trusts. Existing assets in a single employer or group OPEB Trust can be conveniently transferred to the PEB Trust.**
• Performance Assessment. Investment performance information is provided independently of asset managers/advisors (GIPS consistent reporting).

To get started with PEB Trust, you’ll need to:

• Get Board or Council approval of our Trust Agreement and Assumption Agreement
• Designate a plan administrator and primary contact for the employer (can be the same person)
• Sign a Service Agreement with FSW Advisory Services, Inc.

Before you fund, we recommend that you:

• Decide on the amount and timing of prefunding
• Select your investment consultant(s) or asset manager(s)
• Determine your target asset allocation and investment policy

PEB Trust’s knowledgeable professionals are available to assist you throughout the process. Contact us today to learn more about PEB Trust or to get started. Click here to download our brochure in PDF format.
 

PEB Trust of Texas is governed by an independent board of trustees that includes the following governmental employer representatives and financial industry veterans. The board can add, replace or remove providers—including counsel, auditor, investment advisor, custodian, or plan administrator—as necessary. 

Contact us today to learn more about PEB Trust. Click here to download our brochure in PDF format.