Agenda

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ARF- 6138

3. A.

Regular Meeting

Meeting Date:	07/28/2020
Submitted For:	Mary Springer	Submitted By:	Maryn Belling, Budget Manager
Department:	Finance

Information

Request/Subject

Follow-up Discussion on Options to Address the Public Safety Personnel Retirement System (PSPRS) Unfunded Liability

Background Information

On June 18, 2019, the Gila County Board of Supervisors adopted Policy No. BOS-FIN-116 - Public Safety Retirement System Funding in compliance with: 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 ration 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.

On June 23, 2020, Mark Reader from Stifel, Nicolaus & Company, Incorporated and Mike Townsend from PSPRS provided a presentation to the Board of Supervisors during a Work Session to introduce and discuss options for funding the UAAL (Unfunded Actuarially Accrued Liability), the associated risks and other attributes.

Evaluation

Per the Board's request, this item is being placed on this agenda as a follow-up to the Board's previous Work Session discussion to discuss previously presented information, analyze options and provide direction to staff.

Conclusion

Not applicable. Ongoing work-session discussion item.

Recommendation

Information/discussion only.

Suggested Motion

Information/Discussion regarding funding options for the Public Safety Personnel Retirement System (PSPRS) unfunded liability. (Mary Springer)

Attachments
Stifel's Presentation Re: PSPRS
Policy No. BOS-FIN-116
CSA Presentation Re: Pension Debt Funding 7-28-20