OPEB Trust Fund
A political subdivision or other public entity that creates or has created an actuarial liability to pay other post-employment benefits (OPEB) to employees or officers after their termination of service may establish a trust used to pay the benefits. That trust, established under Minn. Stat. §471.6175, may be either revocable or irrevocable, and the assets may be administered by PERA, a bank, or an insurance company or agency.
Should PERA be chosen as the trust administrator, all money in the trust account will be invested by the State Board of Investment (SBI) in their Equity Index Fund, Fixed Income Fund, or Cash Management Fund established under Minn. Stat. §11A.14, subject to procedures set by SBI. The political subdivision will determine which account(s) contributions will be invested in. Contributions and withdrawals will flow through PERA via wire transfer or ACH. Each trade will be confirmed via email. PERA will reconcile all transactions, including investment gains and losses, with SBI and provide financial information at year end (and on demand) to the political subdivision.
To establish an OPEB trust using PERA as the administrator, please sign and return two copies of the trust agreement and one copy of the contact information form below. We will then send you wiring instructions and a signed copy of the trust agreement. If you have any questions, please contact David Andrews at 651-201-2648.