Public Safety Personnel Retirement System
State of Arizona
NEWS RELEASE
Contact: Christian Palmer
Phone: 602-296-3736
FY2024 consolidated, employer valuations available
Reports impact FY2026 employer contributions rates
ARIZONA – Consolidated actuarial valuations for the fiscal year ending June 30, 2024, 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 2026, which spans July 1, 2025, to June 30, 2026.
Aggregate funding levels for all three plans – PSPRS, CORP and EORP – increased despite the continued adoption of increasingly conservative actuarial assumptions and higher than expected member salary increases. Employer contribution rates for tier 1 and 2 public safety and corrections members decreased slightly, while increasing slightly for the elected officials plan.
“Valuations bring different results for different employers but there’s no question that across the board our plans, including EORP, continue to trend in the right direction,” said Administrator Mike Townsend. “PSPRS and employers have succeeded in boosting funding levels while implementing safeguards against future risks. This is a great accomplishment that bolsters our members’ retirement security and protects employer and taxpayer budgets.”
The overall funding level for the PSPRS Tier 1 and 2 plan as of June 30, 2024, increased to 68 from 66 percent. The funding level of the CORP Tier 1 and 2 plan rose to 87.1 from 84.3 percent. The EORP funding level increased to 41.6 from 39 percent.
Aggregate PSPRS Tier 1 and 2 employer contribution rates for the fiscal year ending in 2025 will be 45.59 percent, which marks a decrease of about half a 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 rose to 70.7 from 70.4 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.
“Our plans, particularly public safety and corrections, have made dramatic improvements over the past several years but what we’re seeing now is the steady progress that we planned for,” Townsend said. “Likewise, we’re investing time and resources into improvements like the STARS pension administration system and funding policy and system governance initiatives for the long-term success of PSPRS.”