Just when Sun City Fire and Medical Department officials thought they had their unfunded pension liability paid off, state pension officials said not so fast.
Arizona’s Public Safety Personnel Retirement System has seen its obligations underfunded over the past several decades due to lower-than-expected investment returns, unanticipated impacts from benefit increases and adjusted actuarial assumptions, such as life expectancy and population growth. PSPRS is funded through employee and employer contributions and net investment income administered by the PSPRS Board of Trustees. If there is not enough money generated through those revenue streams, agencies must make up the difference.
PSPRS is a pool of funds to pay the pension of fire department personnel as they retire. An agency’s contribution is based on the number of personnel on staff.
