Click to Home
Bisbee, AZ   Pinetop-Lakeside, AZ   Mesa, AZ   Clarkdale, AZ   Tucson, AZ
Go To Search
SB 1063
SB 1063: NOW: PSPRS; risk pool
(Click for bill language and additional information)

Sponsor: Sen. Lesko

Summary: This bill establishes the Public Safety Employer Risk Pool for members of the Public Safety Personnel Retirement System (PSPRS) hired on or after July 1, 2017, which consists of any PSPRS employer of an eligible group that has, as of the effective date of this legislation, 250 or fewer active members who were hired before July 1, 2017, and any new employer in the PSPRS that has 250 or fewer employees on the effective date of participation in PSPRS. If any individual employer in the Risk Pool experiences a deviation in reported active member payroll of greater than 20 percent of the average of all participating employers in the Risk Pool in a 24-month period, the PSPRS actuary is required to prepare a financial impact report to determine whether the deviation created an increased or decreased unfunded liability within the Risk Pool. If it created an increased unfunded liability, the responsible employer is required to pay 100 percent of the cost of the increase in the unfunded liability. If it created a decreased unfunded liability, the PSPRS is required to credit the responsible employer 100 percent of the cost of the decrease. Each employer in the Risk Pool is required to make contributions sufficient under the PSPRS consolidated actuarial valuation to pay 50 percent of both the normal cost plus the actuarially determined amount required to amortize the total unfunded accrued liability within the Risk Pool, and the remaining 50 percent must be divided by the total number of PSPRS members in the Risk Pool so that each member contributed an equal percentage of the member’s compensation. Establishes the Retiree Pool Account in the PSPRS Fund for the purpose of sharing the actuarial liability attributable to uncontrollable costs for employers of members hired on or after July 1, 2017, and establishes calculations for amounts that must be transferred from employer accounts to the Account for members who are determined eligible for retirement, disability or death benefits. The Account must remain 100 percent funded. In any fiscal year that the Account is not 100 percent funded as of June 30, the amount necessary to adjust the account must be transferred from or to the investment earnings of the Fund before those earnings are distributed to each employer’s account.

League Position: SUPPORT

UPDATES

2/15/2017: SB1063 passed the Senate Appropriations Committee by a vote of 9-0-1. The bill now proceeds to the Rules Committee.

2/28/2017: SB1063 passed the Senate COW.

3/1/2017: SB1063 passed the Senate Third Read by a vote of 27-3. The bill was transmitted to the House.

3/20/2017: SB1063 passed the House Banking and Insurance Committee by a vote of 6-0-0-2. The bill now proceeds to the Rules Committee.

4/12/2017: SB1063 passed the House COW.

4/20/2017: SB1063 passed the House Third Read by a vote of 55-0-4-0-1. The bill was transmitted back to the Senate.

4/25/2017: SB1063 passed the Senate Final Read by a vote of 28-0-2. The bill was transmitted to the Governor.

5/1/2017: SB1063 was signed by Governor Ducey.