| ITEM #: 4. DATE: 06/22/2026 AI #:3304 |
 |
CITY COUNCIL ACTION REPORT
| SUBJECT: | ADOPTION OF PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM (PSPRS) FISCAL YEAR (FY) 2027 PENSION FUNDING POLICY
|
| STAFF PRESENTER(S): | Ryan Bittle, Deputy Director of Finance |
SUMMARY
Adoption of the (PSPRS) FY2027 Pension Funding Policy
STRATEGIC PLAN ALIGNMENT
.png) |
RECOMMENDATION
Adopt the Public Safety Personnel Retirement System FY2027 Pension Funding Policy. (Ryan Bittle, Deputy Director of Finance)
FISCAL IMPACT
Adoption of this policy maintains all of our current budgetary practices related to pension funding.
BACKGROUND AND PREVIOUS ACTIONS
With the 2018 passing of House Bill 2097, every governing body of a PSPRS plan is required to pass a Pension Funding Policy no later than June 30th of each year and post the policy on the governing body’s website. Council has adopted the Pension funding policies for each year beginning with FY2019. Last year's adopted policy was revised to allow discretion in the amount of prepayment.
There are no proposed changes to the FY2026 policy adopted by Council last year. The "City of Goodyear Public Safety Personnel Retirement System FY2027 Pension Funding Policy" is based upon the model policy created by the League of Arizona Cities and meets all requirements of state law.
There are no proposed changes to the FY2026 policy adopted by Council last year. The "City of Goodyear Public Safety Personnel Retirement System FY2027 Pension Funding Policy" is based upon the model policy created by the League of Arizona Cities and meets all requirements of state law.
STAFF ANALYSIS
To fulfill the statutory requirements of Arizona Revised Statute 38-863.01, the city must annually enact a policy to outline and communicate the Council’s pension funding objectives as follows: Beginning on or before July 1, 2019, each governing body of an employer shall annually:
- Adopt a pension funding policy for the system for employees who were hired before July 1, 2017. The pension funding policy shall include funding objectives that address at least the following:
- How to maintain stability of the governing body’s contributions to the system.
- How and when the governing body’s funding requirements of the system will be met.
- Define the governing body’s funded ratio target under the system’s actuarial valuation report.
- Formally accept the employer’s share of the assets and liabilities under the system based on the system’s actuarial valuation report.
- Post the pension funding policy on the governing body’s public website.