Consent 13.
Regular Board of Supervisors Meeting
Finance
- Meeting Date:
- 06/23/2015
- Title:
- Approve excess payment to Public Safety Retirement System
- Submitted By:
- Mike McGinnis, Finance
- Department:
- Finance
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature NOT Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
2
NAME
of PRESENTER:
of PRESENTER:
Jim Vlahovich
TITLE
of PRESENTER:
of PRESENTER:
County Administrator
Mandated Function?:
Not Mandated
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Docket Number (If applicable):
Information
Agenda Item Text:
Approve a $1,000,000 excess payment to the Public Safety Personnel Retirement System for Fiscal Year 2014-15.
Background:
The PSPRS was set up so that each active deputy in Cochise County would pay a constant percentage of salary for retirement. The County would be required to pay any additional amount required to keep the system solvent. The County's current rate of 39.69% will increase to 51.39% for FY 15/16. This amount has increased in part due to current retirees and the amount of unfunded liability. The system required a COLA be paid to retirees in any year the system earns more than 9%, even if there have been large deficits in prior years that have not been recouped. The County has a current unfunded liability in excess of $28 million which will continue to increase unless specific steps are taken to pay down the unfunded liability. Making an excess payment will save substantial dollars in the long run.
We have capacity in the expenditure limitation for FY 14/15 and may not have capacity for FY 15/16, so we are requesting making a second, $1,000,000 excess payment this fiscal year, to be paid before 6/30/15.
We have capacity in the expenditure limitation for FY 14/15 and may not have capacity for FY 15/16, so we are requesting making a second, $1,000,000 excess payment this fiscal year, to be paid before 6/30/15.
Department's Next Steps (if approved):
Finance staff will prepare payment to the PSPRS prior to 6/30/15.
Impact of NOT Approving/Alternatives:
The PRPRS rates and the unfunded liability for Cochise County will continue to increase year after year.
To BOS Staff: Document Disposition/Follow-Up:
Please notify Finance when this item has been approved.
Fiscal Impact
- Fiscal Year:
- FY14/15
- One-time Fixed Costs? ($$$):
- Ongoing Costs? ($$$):
- County Match Required? ($$$):
- A-87 Overhead Amt? (Co. Cost Allocation $$$):
- Source of Funding?:
- G/F Cash Carry Forward
Fiscal Impact & Funding Sources (if known):
This payment, if approved, would come from the general fund cash carry forward.