ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

Senate: APPROP DPA 9-0-1-0 | 3rd Read 25-2-3-0
House: GE DP 11-2-0-0 | APPROP 9-3-0-1

SB 1086: appropriation; unfunded liability; PSPRS; CORP

Sponsor: Senator Livingston, LD 22

Caucus & COW

Overview

Allocates supplemental appropriations from the state General Fund (GF) in FY 2022 to the Public Safety Personnel Retirement System (PSPRS) and the Corrections Officer Retirement Plan (CORP).

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).

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 unfunded accrued liability in PSPRS and $500,000,000 in FY 2021 to reduce the Department of Corrections unfunded accrued liability in CORP.

Provisions

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

Agency

Appropriation

Department of Emergency and Military Affairs

$8,542,800

Attorney General Investigators

$9,117,700

Arizona State Parks Board Rangers

$8,820,600

Department of Liquor Licenses and Control

$7,628,900

Arizona State University Campus Police

$23,565,000

University of Arizona Campus Police

$15,645,900

Northern Arizona University Campus Police

$7,725,600

2.   Appropriates the following amounts from the state GF to CORP group employer accounts as a FY 2022 supplemental appropriation to reduce the unfunded accrued liability (Sec. 1):

Agency

Appropriation

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 in the June 30, 2022 actuarial valuation of the PSPRS and CORP groups that are enumerated. (Sec. 1)

4.   Requires the board to account for the appropriations when calculating the employee and employer contribution rates, which the PSPRS and CORP groups must use when making contributions pursuant to statute during FY 2024. (Sec. 1)

5.    

6.    

7.   ---------- DOCUMENT FOOTER ---------

8.                     SB 1086

9.   Initials SJ  Page 0 Caucus & COW

10.   

11.  ---------- DOCUMENT FOOTER ---------