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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
appropriation; unfunded liability; PSPRS; CORP
Purpose
Appropriates $87,707,700 from the state General Fund (state GF) in FY 2022 to the Public Safety Personnel Retirement System (PSPRS) to reduce the unfunded accrued liability of specified employers accounts.
Background
Established in 1968, PSPRS provides a uniform, consistent and equitable statewide retirement program for public safety personnel who are regularly assigned hazardous duties in the employ of the State of Arizona or a political subdivision. PSPRS functions as either a defined benefit plan or a defined contribution plan (A.R.S. § 38-841).
Established in 1986, the Corrections Officer Retirement Plan (CORP) provides retirement and disability benefits for correctional officers and employees as well as county, city or town detention officers, dispatchers, probation officers and surveillance officers (A.R.S. § 38-881).
S.B. 1086 appropriates $87,707,700 from the state GF in FY 2022 to PSPRS.
Provisions
1. Appropriates the following amounts from the state GF in FY 2022 to PSPRS to be deposited into the following employer accounts to reduce the unfunded accrued liability:
a) $8,542,800 to the Attorney General Investigators;
b) $9,117,700 to the Arizona State Parks Board Rangers;
c) $8,820,600
to the Department of Emergency and Military Affairs;
d) $7,628,900 to the Department of Liquor Licenses and Control;
e) $23,565,000 to the Arizona State University Campus Police;
f) $15,645,900 to the University of Arizona Campus Police; and
g) $7,725,600 to the Northern Arizona University Campus Police.
2. Appropriates the following amounts from the state GF in FY 2022 to PSPRS to be deposited in the following CORP employer accounts to reduce the unfunded accrued liability:
a) $6,352,000 to the Department of Public Safety (DPS) Dispatchers; and
b) $309,200 to the DPS Detention Officers.
3. Requires the PSPRS Board of Trustees (Board) to account for the appropriations in the June 30, 2022, actuarial valuation of outlined groups.
4. Requires the Board to account for the appropriations when calculating the employee and employer contribution rates for FY 2024.
5. Becomes effective on signature of the Governor.
Amendments Adopted in Committee
1. Changes the appropriation to the outlined employer accounts.
2. Appropriates monies to PSPRS to be deposited into the three public universities' campus police employer accounts to reduce the unfunded accrued liability.
Senate Action
APPROP 1/25/21 DPA 9-0-1
Prepared by Senate Research
January 26, 2022
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