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City of Prescott Reduces Unfounded Liability by Half Featured

John Heiney, City of Prescott December 21, 2020 654

City of Prescott Contributes Additional $43.9 Million to Paying Down PSPRS Unfunded Liability Prescott PSPRS is now 69.4 % Funded

Big Idea

  • The City of Prescott got a great Christmas present in PSPRS news
  • The unfunded liability is now just over $43 million, 69.4%
  • The tax will sunset when the unfunded liability is down to $1.5million, or in 10 years, whichever is sooner
  • Read more... 

The tax dedicated to reducing the PSPRS debt is .75¢

Prescott, AZ (December 21, 2020) - The Public Service Personnel Retirement System (PSPRS) recently provided the annual actuarial valuation for the City of Prescott’s pension trusts, as of June 30, 2020, for the Fiscal Year 2020.

Prescott’s liability is now just over $43 million, down from $86.4 million in fiscal year 2018.  As of this report, Prescott is 69% funded.   In FY 17 the number was 30.1% funded.

“This is more good news for the City of Prescott,” said Prescott Mayor Greg Mengarelli. “Despite the effects of the pandemic on the local economy, we continue to make great strides in paying down the PSPRS unfunded accrued liability.”  

The 0.75 cent tax is scheduled to sunset when the PSPRS unfunded liability reaches $1.5 Million, OR 10 years, whichever comes first.  The Council’s goal is 100% fully funded by June 30, 2028.  

Since the 0.75 cent sales tax went into effect in January, 2018 as a result of the passage of Proposition 443, Prescott has contributed $43,858,553 additional to paying down our unfunded liability since fiscal year 2018.  

City Councilwoman Billie Orr, who led the campaign to get Proposition 443 passed, said “This is a real success story.  This is another great Christmas Present for the City of Prescott.”

This payment is in addition to the Annual Required Contribution (ARC), which comes from operating funds (General Fund).  The Council’s Pension Policy states that “Council is committed to maintaining the full ARC payment from operating funds.”

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Last modified on Tuesday, 22 December 2020 22:32
Published in Prescott.news

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