December 13, 2023
Public Safety Personnel Retirement System
State of Arizona
NEWS RELEASE
Contact: Christian Palmer
Phone: 602-296-3736
Consolidated, individual employer valuations available
Fiscal year 2023 valuations with contribution rates online
ARIZONA – Consolidated actuarial valuations for the fiscal year ending June 30, 2023, are available online for PSPRS, CORP and EORP, along with individual employer valuations and contribution rates for counties, municipalities, fire districts and agencies across the State of Arizona.
Consolidated plan reports and individual employer valuations can be viewed and downloaded on the PSPRS financial reporting webpage. The recorded contribution rates take effect in fiscal year 2025, which spans July 1, 2024, to June 30, 2025.
“We’re pleased with the financial progress of PSPRS, CORP and EORP,” said Administrator Mike Townsend. “Funding levels continue to rise while contribution rates held steady for most of the public safety and corrections plans and fell considerably for the elected official’s plan. We’re going to continue to be consistent in our work with employers to help manage the plans responsibly.”
The overall funding level for the PSPRS Tier 1 and 2 plan as of June 30, 2023, increased to 66 percent. The funding level of the CORP Tier 1 and 2 plan rose to 84.3 percent. The EORP funding level increased to 39 percent, an increase of more than 6 percentage points.
Aggregate PSPRS Tier 1 and 2 employer contribution rates for the fiscal year ending in 2025 will be 46.01 percent, which marks an increase of less than 1 percentage point. The aggregate CORP Tier 1 and 2 employer contribution rates fell to 16.44 percent from 17.86 percent, while EORP employer contribution rates dropped to 70.44 percent from 76.51 percent.
Changes to individual employer contribution rates will vary, some significantly. Public safety and corrections employers are also encouraged to review contribution rate changes to the well-funded Tier 3 retirement plans.
Pay increases for public safety and corrections plan members were a factor in changing employer funded status and contribution rates, along with actuarial assumption and policy changes adopted by the PSPRS Board of Trustees to safeguard financial sustainability and lower long-term costs.
Contribution rate changes were modest due to PSPRS investment performance and additional employer contributions aimed at reducing unfunded pension obligations. Fiscal year 2023 investment returns met or exceeded assumptions across all measured timeframes while employers contributed an additional $560 million, including a legislatively approved $60 million state appropriation to the elected official’s plan.
“Employers and PSPRS have created drastic improvements to these pension plans, particularly for PSPRS and CORP, over the last four years,” Townsend said. “Plan assets have almost doubled, funding levels have grown by 20 and 30 percentage points, respectively, while required contribution amounts have fallen by more than $250 million a year. The level of progress is stunning.”
