PEB Trust is a Multi‐Employer Trust tailor-made for public entities, allowing them to conveniently prefund Other Post- Employment Benefit (OPEB) liabilities.
PEB Trust originated in Texas.
PEB Trust is also currently marketing in the following states: CA, CT, FL, LA and RI. If you are not in
one of those states, there is a good chance we can accommodate you. However, there is some state-specific research that is required. Please contact brian.whitworth@firstsw.com for more information.
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
Benefits
Creating your own trust for OPEB prefunding can be complex and time consuming. PEB Trust has many advantages over single-employer trusts and existing multiemployer trusts.
- 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. Current preferred investment consultants are Milliman and Gregory W. Group. Both have extensive experience with public sector investments, including OPEB or choose your own counsel if you prefer.
- Local Service Providers in Several States.
- Separate Accounts. Each PEB Trust member has a separate account, and there is no pooling of investments with other members.
- 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 learn more about PEB Trust, please click on the Contact Us tab above to contact any of our professionals.
*Both programs have certain limitations, and more details are available upon request.
**Some regulatory restrictions may apply.