Section 115 Trust Management Services

The City is soliciting proposals from qualified firms to establish, manage, and service an Internal Revenue Service (IRS) Code Section 115 Retirement Trust on behalf of the City, for the benefit of eligible current and former employees. Trust assets are intended to be used for funding the City’s unfunded long-term pension liabilities, Other Post Employment Benefit (OPEB) obligations and potentially other eligible expenses . The objectives of the proposed trust are to hold assets set aside to fund future pension obligations and expenditures while providing reasonable investment returns and maximum flexibility in terms of beneficiaries of trust assets. The yield objective recognizes the need to protect the principal value of assets in the trust while also acknowledging that yields cannot be obtained without some measure of prudent risk.