ARIZONA HOUSE OF REPRESENTATIVES

HB 2097: pension funding policies; employers

PRIME SPONSOR: Representative Livingston, LD 22

BILL STATUS: Banking & Insurance

Abstract

Relates to PSPRS employers.

Provisions

1. Requires, beginning on or before July 1, 2019, each governing body of a PSPRS employer to annually:

a. Adopt a pension funding policy as part of the governing body's financial policies.

i. Outlines funding objectives to be included in the policy.

b. Formally accept the PSPRS actuarial valuation report of each employer under the governing body. (Sec. 1)

2. Requires the governing body to post the pension funding policy on their website. (Sec. 1)

Current Law

PSPRS was created in order to provide a uniform, consistent and equitable statewide program for public safety personnel who are regularly assigned to hazardous duty and are employed by the state or a political subdivision (A.R.S. § 38-841).

Employers are required to make contributions sufficient to meet the normal cost for members hired before July 1, 2017 plus an amount required to amortize the unfunded accrued liability on a level percent of compensation basis for all employees over a 20- year period, beginning July 1, 2017.  For members hired on or after July 1, 2017, employer contributions are dependent on the employers participation in the public safety risk pool. 

Employers in the risk pool must make contributions sufficient to pay 50% of both the normal cost plus the actuarially determined amount required to amortize the unfunded accrued liability within the risk pool for all employers attributable to all members in the risk pool.  Employers not in the risk pool must make contributions sufficient to pay 50% of the normal cost plus the actuarially determined amount required to amortize the unfunded accrued liability for each employer attributable only to those members hired on or after July 1, 2017 (A.R.S. § 38-843).

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Fifty-third Legislature                  HB 2097

Second Regular Session                               Version 1: Banking and Insurance

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