Agenda

Back to Calendar Return

Work Session Item 8. A.

Regular BOS Meeting

Meeting Date:	06/04/2019
Submitted For:	Mary Springer	Submitted By:	Mary Springer, Finance Director
Department:	Finance
Fiscal Year:	FY2019/FY2020	Budgeted?:	Yes
Contract Dates Begin & End:	07-01-19-06-30-20	Grant?:	No
Matching Requirement?:	No	Fund?:	New

Information

Request/Subject

Proposed new Policy No. BOS-FIN-116 - Public Safety Personnel Retirement System Funding.

Background Information

The State of Arizona House of Representatives at the Fifty-third Legislature second regular session in 2018 passed House Bill 2097 which amended Title 38, Chapter 5, Article 4, Arizona Revised Statutes, by adding section 38-863.01 - Pension funding policies; employers, which relates to the Public Safety Personnel Retirement System (PSPRS).

A.R.S. §38-863.01 requires the Board of Supervisors to adopt and post a pension funding policy annually beginning on or before July 1, 2019.

Beginning on or before July 1, 2019, each governing body of an employer shall annually:

Adopt a pension funding policy for the system for employees who were hired before July 1, 2017. The pension funding policy shall include funding objectives that address at least the following:

How to maintain stability of the governing body’s contributions to the system.
How and when the governing body’s funding requirements of the system will be met.
Defining the governing body’s funded ratio target under the system and the timeline for reaching the targeted funded ratio.
Formally accept the employer’s share of the assets and liabilities under the system based on the system’s actuarial valuation report.

The governing body shall post the pension funding policy on the governing body’s website.

Evaluation

A.R.S. §38-863.01 requires the Board of Supervisors to adopt and post a pension funding policy annually beginning on or before July 1, 2019.

Conclusion

A.R.S. §38-863.01 requires the Board of Supervisors to adopt and post a pension funding policy annually beginning on or before July 1, 2019.

Recommendation

Staff recommends that the Board of Supervisors review proposed Policy No. BOS-FIN-116 Public Safety Personnel Retirement System Funding. If at the end of the discussion the Board agrees with the policy, it will be placed on the Board's June 18th agenda for official action to adopt the policy.

Suggested Motion

Information/Discussion regarding proposed new Policy No. BOS-FIN-116-Public Safety Personnel Retirement System Funding. (Mary Springer)

Attachments
Proposed Policy No. BOS-FIN-116
A.R.S. 38-863.01