ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	Senate: APPROP DPA 9-0-1-0 | 3^rd Read 25-2-3-0 House: GE DP 10-3-0-0 | APPROP 9-4-0-0

---

SB 1087: appropriations; unfunded liability; corrections; safety

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. Appropriates 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 Public Safety	$420,559,600
Arizona Game and Fish Department	$82,243,000

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 Corrections	$474,635,300
Department of Juvenile Corrections	$73,940,800

3. Appropriates $15 million from the Game and Fish Fund in FY 2022 as a supplemental appropriation to be deposited in the Arizona Game and Fish Department PSPRS group employer account to reduce the unfunded accrued liability. (Sec. 1)

4. Directs the board of trustees of PSPRS to account for the appropriations in the June 30, 2022 actuarial valuation of the Department of Public Safety PSPRS group and the state Department of Juvenile Corrections CORP group. (Sec. 1)

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

---------- DOCUMENT FOOTER ---------

                  SB 1087

Initials SJ  Page 0 Caucus & COW

---------- DOCUMENT FOOTER ---------