As school districts gaze towards an uncertain fiscal future, they are taking stock of how to best allocate the funds they currently possess. With the Legislative Analyst’s Office recent warning that educational funding cuts may be necessary, many districts are reckoning with the potential of a rocky path forward. Prefunding retiree healthcare benefits, known as Other Post-Employment Benefits, (OPEB) into a Section 115 Trust is a helpful tool in smoothing that path and providing potential budgetary relief in difficult times.
Long term obligations, such as OPEB, present a serious fiscal challenge for many districts. Retiree healthcare costs rise regardless of funding fluctuations within the Governor’s budget. Prefunding these critical obligations into a Section 115 Trust is a great way for districts to address those rising costs.
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Overview
Funds placed into the program are considered assets on your district’s financial statements that address liability and are protected from diversion to other uses. This program gives districts local control of assets, providing you with the flexibility to make contributions as deemed appropriate and the ability to access and withdraw funds to pay for OPEB expenses at any time. Additionally, districts benefit from compounding interest on funds held in the trust (which are tax-exempt), and can diversify assets according to risk tolerance and performance goals to gain potentially greater interest earnings.
Program Benefits
Benefits of the OPEB Solutions Program include:
- Governmental Accounting Standards Board (GASB) 75 compliant
- IRS-approved with exclusive Private Letter Ruling
- PARS experience, over 20 years in OPEB trust administration and over 35 years in retirement solutions
- Strong trustee, U.S. Bank, the fifth largest commercial bank in the nation
- Dedicated senior-level consulting and portfolio management
- Local control and investment flexibility of program assets
- Fast implementation and cost-effective
- No minimum fees or contributions
- Personalized customer service and program oversight to ensure districts' satisfaction
Contact our dedicated program staff listed below for more information about how you can take control of your OPEB obligations today!
Upcoming Webinars
Upcoming Webinars
There are no webinars scheduled at this time. Please check back at a later date or visit CSBA's social media accounts to stay up to date.
Past Webinars
Navigating the 2026-27 May Revise: Build Your Fiscal Toolbox
Date: June 4, 2026
Time: 11 p.m. (PST)
Managing OPEB Costs and other Liabilities within Changing Budgets
Date: May 25, 2023
Time: 2 p.m. (PST)
About PARS
Since 1984, PARS has administered retirement plans and trust solutions for public education and local governments, today serving over 1,000 agencies. In partnership with CSBA, the OPEB Solutions Program provides California educational agencies with a comprehensive solution to prefund and manage their OPEB (other post-employment benefits) liabilities. PARS is the pioneer and largest Section 115 Post-Employment Benefits Trust administrator (for prefunding OPEB and pension) in the U.S. and is also the national leader in early retirement and separation incentives for education.
Contacts
PARS (Public Agency Retirement Services)
800.540.6369
- Eric O’Leary, ext. 124
- Dennis Yu, ext. 104
- Ryan Nicasio, ext. 134
- Rachael Sanders, ext. 121
- Jennifer Meza, ext. 141
CSBA (California School Boards Association)
800.266.3382
- Nicole Delos Reyes, ext. 3275