December 18, 2020
Public Safety Personnel Retirement System
State of Arizona
December 18, 2020
FOR IMMEDIATE RELEASE
Contact: Christian Palmer
Consolidated, individual employer valuations available
Fiscal year 2020 valuations with contribution rates online
ARIZONA – Consolidated actuarial valuations for the fiscal year ending June 30, 2020, are available online for PSPRS, CORP and EORP, along with individual employer valuations and contribution rates for counties, municipalities 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 overall funding level for PSPRS increased to 48 percent, an approximate gain of three-tenths of a percentage point. The EORP funding level increased to 34.3 percent, an increase of slightly less than 1 percent. The funding level of CORP fell to 54.1 percent, which marked an approximate 1 percent decline.
Aggregate PSPRS Tier 1 and 2 employer contribution rates for the fiscal year ending in 2021 will be 56.46 percent, which marks about a 1.7 percent increase. The aggregate CORP Tier 1 and 2 contribution rates will increase approximately half a percentage point, to 31.53 percent.
Changes to individual employer contribution rates will vary, some significantly.
The PSPRS Board of Trustees elected to continue the current Tier 3 public safety member and employer contribution rate of 10.09 percent. The EORP employer contribution rate will also remain 61.43 percent while Tier 3 corrections employer contribution rates will increase to 36.66 percent.
Changes in PSPRS contribution rates were largely attributed to investment returns falling below assumed rates and actuarial changes to amortization schedules and payroll growth assumptions passed by the Board of Trustees.
PSPRS Administrator Mike Townsend cautioned that actuarial changes passed by the board of trustees will gradually raise employer contribution rates for several years before producing savings for employers and taxpayers.
The board of trustees, he noted, will further examine actuarial assumptions and funding policies with the PSPRS Advisory Committee in the coming year. At the same time, the system will continue to work with employers to explore financing options for unfunded pension liabilities, he said.
“Increasing the financial health of PSPRS-managed plans remains a top priority of our trustees and the administrative leadership of this agency,” Townsend said. “We’re committed to helping employers understand pension financing and reducing long-term employer costs while meeting our obligations to members and retirees who need to be able to count on pension security."