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Regular Agenda Item 4. I.

Regular BOS Meeting

Meeting Date:	03/15/2022
Submitted By:	Maryn Belling, Budget Manager
Department:	Finance

Information

Request/Subject

FY22 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 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 the FY22 Revision to Policy No. BOS-FIN-116 Public Safety Personnel Retirement System Funding in consideration of the 6-30-2021 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 6/30/2021. (Maryn Belling)

Attachments
FY22 Revised Policy No. BOS-FIN-116
GCSO 6-30-21 Actuarial Valuation
Detention 6-30-21 Actuarial Valuation
Dispath 6-30-21 Actuarial Valuation
ARS 38.863.01