Assigned to FIN &                                                                                                                     FOR COMMITTEE

 

 

 

 

ARIZONA STATE SENATE

Fifty-Third Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2097

 

pension funding policies; employers

 

Purpose

 

Requires each governing body of a Public Safety Personnel Retirement System (PSPRS) employer to annually adopt a pension funding policy for PSPRS, and requires the governing body to formally accept the employer's share of the assets and liabilities.

 

Background

 

A PSPRS employer is defined as:

1.      cities contributing to the Fire Fighters' Relief and Pension Fund as of June 30, 1968, on behalf of their full-time paid firefighters (A.R.S. Title 9, Chapter 8, Article 3);

2.      cities contributing under the state police pension as of June 30, 1968, on behalf of their municipal policemen (A.R.S. Title 9, Chapter 8, Article 2);

3.      the state highway patrol covered under the State Highway Patrol Retirement System;

4.      the state, or any political subdivision of this state, including towns, cities, fire districts, joint powers authorities, counties and nonprofit corporations operating public airports that have elected to participate in PSPRS on behalf of an eligible group of public safety personnel pursuant to a joinder agreement entered into after July 1, 1968 (A.R.S. §§ 28-8423 and 28-8424); and

5.      Indian tribes that have elected to participate in the PSPRS on behalf of an eligible group of public safety personnel pursuant to a joinder agreement entered into after July 1, 1968.

 

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

 

Provisions

 

1.      Requires each governing body of a PSPRS employer, beginning on or before July 1, 2019, to annually adopt a pension funding policy for PSPRS for employees who were hired before July 1, 2017.  Requires the funding policy to include funding objectives that address at least:

a)      how to maintain stability of the governing body's contributions to PSPRS;

b)      how and when the governing body's funding requirements of PSPRS will be met; and

c)      defining the governing body's funded ratio target under PSPRS and the timeline for reaching the targeted funded ratio.

 

2.      Requires the governing body to formally accept the employer's share of the assets and liabilities based on PSPRS's actuarial valuation report.

 

3.      Requires the governing body to post the pension funding policy on the governing body's public website.

 

4.      Becomes effective on the general effective date.

 

House Action

 

BI                    1/18/18     DPA     6-1-0-1

3rd Read          2/12/18                  58-0-1-0-1

 

Prepared by Senate Research

February 26, 2018

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