ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

 

HB 2035: appropriations; PSPRS; CORP; unfunded liability

Sponsor: Representative Cook, LD 8

Committee on Appropriations

Overview

Appropriates $1,576,777,800 from the state General Fund (GF) in FY 2022 to the Public Safety Personnel Retirement System (PSPRS) to reduce unfunded accrued liability for state agencies.

History

PSPRS was established in 1968 to provide a uniform statewide retirement program for public safety personnel (A.R.S. § 38-841). It is a defined benefit pension plan that is organized into local boards for different employing agencies (A.R.S. § 38-847). Employing agencies make contributions based on: 1) the normal cost associated with the retirement benefit; and 2) the unfunded accrued liability, which is based on prior benefits that are actuarially determined to be unfunded (A.R.S. § 38-843).

The Corrections Officer Retirement Plan (CORP), which is administered by PSPRS, is similarly organized into local boards and has a similar contribution structure (A.R.S. §§ 38-891, 38-893).

Laws 2021, Ch. 408 appropriated $500,000,000 in FY 2021 to reduce the Department of Public Safety (DPS) unfunded accrued liability in PSPRS and $500,000,000 in FY 2021 to reduce the Department of Corrections (ADC) unfunded accrued liability in CORP.

Provisions

Other PSPRS and CORP Groups (Sec. 1)

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAppropriates the following sums from the GF to PSPRS group employer accounts as a FY 2022 supplemental appropriation to reduce the unfunded accrued liability:

Agency

Appropriation

Arizona Game and Fish Department

$97,292,500

Arizona State University Campus Police

$23,602,900

University of Arizona Campus Police

$15,677,800

Attorney General Investigators

$9,132,900

Arizona State Parks Board Rangers

$8,833,200

Department of Emergency and Military Affairs

$8,559,300

Northern Arizona University Campus Police

$7,734,200

Department of Liquor Licenses and Control

$7,636,700

 

2.   Appropriates the following sums from the GF to CORP group employer accounts as a FY 2022 supplemental appropriation to reduce the unfunded accrued liability:

Agency

Appropriation

Administrative Office of the Courts – Probation

$421,262,900

Department of Juvenile Corrections

$73,940,700

Department of Public Safety Dispatchers

$6,352,000

Department of Public Safety Detention Officers

$309,200

 

3.   Directs the Board of Trustees of PSPRS to account for the appropriations to the PSPRS group employer accounts and the CORP group employer accounts in the June 30, 2022 actuarial valuations for the purposes of employee and employer contribution rates in FY 2024.

DPS and ADC Groups (Sec. 2)

4.   Appropriates $421,859,400 from the GF as a supplemental FY 2022 appropriation to reduce the unfunded accrued liability of the DPS PSPRS group.

5.   Appropriates $474,584,100 from the GF as a supplemental FY 2022 appropriation to reduce the unfunded accrued liability of the ADC CORP group.

6.   Directs the Board of Trustees of PSPRS to account for the appropriations to the DPS PSPRS group and the ADC CORP group in the June 30, 2022 actuarial valuations for the purposes of employee and employer contribution rates in FY 2024.

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10.                    HB 2035

11.  Initials AF  Page 0 Appropriations

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