Action 14.
Regular Board of Supervisors Meeting
Finance
- Meeting Date:
- 12/19/2017
- Title:
- PSPRS pre-judgement interest and refund
- Submitted By:
- Kim Lemons, Board of Supervisors
- Department:
- Board of Supervisors
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature NOT Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
0
NAME
of PRESENTER:
of PRESENTER:
Lynette Nowlan
TITLE
of PRESENTER:
of PRESENTER:
Finance Director
Mandated Function?:
Federal or State Mandate
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Docket Number (If applicable):
Information
Agenda Item Text:
Approve the issue of the Public Safety Personnel Retirement System (PSPRS) pre-judgment interest refunds to the applicable PSPRS members in the amount of $82,614.85.
Background:
On June 27, 2017, the BOS approved the issuance of the excess contributions refund to members of PSPRS who were impacted by the Parker lawsuit filed against the State. At that time, the interest rate was unknown so interest was not included in those first refunds. Since that date, the Parker lawsuit was finalized and the interest rate of 5.25% for pre-judgment interest, have been determined providing employers the needed information to issue the interest refunds. The amount of pre-judgment interest to be paid by the County for PSPRS is $82,614.85. Due to the fact that the County issued the majority of refunds, on June 28, 2017, no post-judgment interest will be paid.
Department's Next Steps (if approved):
Finance will work to issue the refunds by December 31, 2017.
Impact of NOT Approving/Alternatives:
As the refunds are a result of an Arizona Supreme Court decision, the refunds will eventually need to be issued by the County and the delay in issuing the refunds will result in an increase to the amount of interest that the County will have to pay overall. And while the County will not incur any additional interest, the issuance of these refunds will complete the tasks associated with this lawsuit for the County and employees will have received the amounts due them.
To BOS Staff: Document Disposition/Follow-Up:
Notify Finance of approval of agenda item.