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Regular Agenda Item 3. K.

Regular BOS Meeting

Meeting Date:	05/18/2021
Submitted For:	Mary Springer	Submitted By:	Mary Springer, Finance Director
Department:	Finance
Fiscal Year:	FY21-22	Budgeted?:	Yes
Contract Dates Begin & End:	FY21-22	Grant?:	No
Matching Requirement?:	No	Fund?:	Renewal

Information

Request/Subject

Request Board adopt revised 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 the 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. The policy was presented to the Board as a work session item on June 4, 2018, for the Board's review. The policy was adopted by the Board on June 19, 2019. Staff is requesting the Board adopt the revised policy that updates the assets and liabilities based on the actuarial report as of June 30, 2020.

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, 2021.

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, 2021.

Recommendation

Staff recommends adoption of revised Policy No. BOS-FIN-116 - Public Safety Personnel Retirement System Funding to satisfy the requirement of A.R.S. §38-863.01.

Suggested Motion

Information/Discussion/Action to adopt revised Policy No. BOS-FIN-116 - Public Safety Personnel Retirement System Funding. (Mary Springer)

Attachments
ARS 38-863.01
BOS-FIN-116 Original Policy
BOS-FIN-116 Revised Policy