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Trinity County receives PARS trust performance update; board approves revised investment policy statement
Summary
PARS and PFM presented a quarterly review of Trinity County’s 1/15 combo trust (OPEB and potential pension prefunding). Trustees outlined account returns, funded‑ratio context and a proposed administrative update to the investment policy statement, which the board approved on a roll‑call vote.
Trinity County supervisors heard a presentation on the county’s PARS 1/15 combo trust for fiscal year 2024–25 and approved an updated investment policy statement (IPS) intended to reflect recent vendor consolidations and administrative updates.
Consultants from PARS and PFM Asset Management reviewed the trust structure and recent performance. The county’s OPEB account showed total assets of about $26.55 million as of June 30, 2025, PARS said; PARS reported net investment earnings of roughly $5.7 million since inception and an annualized rate of return near 5.8 percent. The account’s long‑term compound annual growth rate was listed at 5.84 percent.
PARS reported that the most recent actuarial valuation (June 30, 2022) estimated a total OPEB liability of approximately $52 million and a fiduciary net position of about $12.5 million at that valuation date (a 23.9% funded ratio by the AV). PARS noted that subsequent contributions increased the account balance and that using the June 30, 2025 asset snapshot the funded ratio rises to about 50.8 percent.
On the pension side the presentation noted the county’s funded ratio was “just under 60 percent” on the last available actuarial report and that annual required employer contributions are expected to grow in coming years. Presenters described prefunding as a smoothing tool to reduce future contribution volatility and presented the pension prefunding option as one the county could consider.
PFM’s investment representative described the proposed IPS update as administrative and governance‑oriented rather than a change in strategy: the county would remain in a "moderate" (roughly 50/50 equities‑to‑fixed income) objective and the IPS changes mainly reflect organizational consolidations among investment managers, updated fund lineups and minor rebalancing ranges. Presenters emphasized the IPS’s role as a governance tool to guide decision‑making and to be reviewed periodically.
The board voted to adopt the updated IPS. Roll call showed unanimous support: Supervisors Gogan, Lewiler, Cox, Brownfield and Carpenter Harris voted in favor.
Supervisors and attendees asked for three main takeaways to relay to non‑specialist residents: (1) the trust currently follows a 50/50 stock/bond mix; (2) the long‑term annualized rate of return is about 5.84 percent; and (3) the portfolio’s expected long‑term return aligns reasonably with the actuarial discount rate of 6 percent, which is used to calculate present value of future benefit obligations.
Ending: Consultants said they will continue to provide performance updates, support the county on any decision to prefund pension liabilities and work with county staff on IPS implementation and periodic review. The board’s adoption of the updated IPS was procedural; no change to the county’s investment objective or risk profile was approved.
