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Regular Agenda Item 4. H.

Regular BOS Meeting

Meeting Date:	02/07/2023
Submitted For:	Maryn Belling	Submitted By:	Maryn Belling, Finance Director
Department:	Finance

Information

Request/Subject

Adoption of FY23 Revision of 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's 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.

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 adopt the FY23 Revision to Policy No. BOS-FIN-116 -Public Safety Personnel Retirement System Funding in consideration of the June 30, 2022, actuarial valuation reports (attached).

Suggested Motion

Information/Discussion/Action to adopt revised Policy No. BOS-FIN-116 - Public Safety Personnel Retirement System Funding to reflect updated actuarial valuation as of June 30, 2022. (Maryn Belling)

Attachments
BOS-FIN-116 2023 Update
BOS-FIN-116 Redline Version
Gila County CORP (503) 2022
558 2022_CORP-Valuation-GilaCounty-Dispatchers
112 2022_PSPRS-Valuation-GilaCountySheriff'sDept
ARS 38.863.01