AZCOPS | PSPRS 3rd Quarter Newsletter of 2019
PSPRS 3rd Quarter Newsletter of 2019
New management, system updates and more…
Don’t miss this newsletter! We have something for all stakeholders – members, employers, retirees…everyone.
Read up on Tier 1b DROP affairs, the improvement of PSPRS plans, Brian Tobin’s retirement from the board – and who trustees voted to be his successor – as well as the addition of the League of Arizona Cities & Towns pension expert.
We also added a few tips for retirees on handling 1099 tax forms and introduced a video to explain how pensions increase under ballot props 124 and 125. And to keep up with current events, we caught up with a Prescott city councilwoman to see how local efforts to tackle unfunded pension liabilities are paying off.
EMPLOYER UPDATE: DROP, SERVICE PURCHASE ROLLBACK
Roughly 110 employers have been notified that they will have to coordinate with PSPRS this year to refund Tier 1b member DROP contributions.
PSPRS staff has been working with the employers to tweak payroll/contribution data and stop Tier 1b DROP contributions in order to process exact refund amounts.
The system expects to finish the process for Tier 1b active members and retirees (and those retiring soon) by July 1, 2019.
PENSION IMPROVES – SLIGHTLY, BUT WE’LL TAKE IT
All three PSPRS-managed plans made gains over the last fiscal year, according to the new reports issued by actuary Gabriel Roeder Smith.
PSPRS Administrator Jared Smout called the stability of contribution rates and the gains in overall funding positive signs. Smout noted that while some individual employers will see results that differ from the mean, the actuarial reports predict that overall contribution should stabilize moving forward.
“Actuarial liabilities don’t change directions on a dime,” he said. “First, the losses decline in severity – which we have seen in the past several years – and then the actuarial stats plateau before they change course and head into a positive direction. We appear to be standing on the front edge of positive movement.”
FOND FAREWELL TO TOBIN, DAVIS, RAINES AND McNEIL
Board Chairman Brian Tobin wrapped up his trustee tenure in December at a staff luncheon where he was honored along with fellow trustees Bill Davis, Ed McNeil and Bryan Raines.
Amid the compliments, Tobin, who retires from the Phoenix Fire Department after more than 35 years of service this summer, said it was time for “new blood at PSPRS to bring in new energy…”
PSPRS UNVEILS PENSION INCREASE VIDEO
On the heels of voter approval of Proposition 125 in November 2018, PSPRS has released a video explaining the benefit increase formula changes for retirees of all three PSPRS-managed plans.
The video joins a library of information about the replacement of the PBI with a standard COLA.
PSPRS added a Prop 125 Frequently Asked Questions  page to its website last year. The official statements from supporters of Proposition 125 can be viewed here.
PSPRS BOARD UNDER NEW MANAGEMENT
PSPRS trustees on January 23 unanimously selected Will Buividas to serve as the next board chairman while Trustee Mike Scheidt was appointed to serve as vice-chair.
“Chairman Tobin leaves some big shoes,” said Buividas, who has been active in public safety and retirement labor matters for more than a decade. “My goal is to continue the system on the path to financial prosperity through an equal partnership between membership and all of our employers.
PSPRS WELCOMES TRUSTEE SCOTT McCARTY
Queen Creek Finance Director Scott McCarty is the newest appointee to the PSPRS Board of Trustees. McCarty was nominated by the League of Arizona Cities and Towns and appointed by Arizona Senate President Steve Yarbrough.
Upon his appointment, McCarty said he is encouraged by the board’s investment experience and commitment to long-term trust sustainability and improving education for local boards and employers.
PSPRS, PSF-GALLOWAY STARTS STATEWIDE TRAINING
One of the most important duties PSPRS has is to provide up-to-date training events for its members, employers and local boards. To start off the new year, PSPRS is headed to Tolleson and Nogales in late January for local board training.
PSPRS also works with Public Safety Financial/Galloway to provide additional training services for members. Galloway has February events scheduled in Flagstaff, Show Low and Glendale.
PRESCOTT PENSION MOVES PAYING OFF
A lot can change in a year. The City of Prescott slashed its police and fire employer contribution rates by 20 percent and increased its funded status by more than 15 percent last fiscal year.
The stark turnaround is the result of Prescott voters’ approval of a2017 sales tax increase referendum to help the city pay down its unfunded police and fire pension liabilities, as well as the city council’s decision to put $11 million in savings towards the same goal.
Councilwoman and Mayor Pro Tem Billie Orr, a major proponent of the Proposition 443 sales tax, said Prescott went from being the “poster child” for dangerously high pension liabilities to being a model for creating local solutions to budget problems…
1099-R FORM: FAQs FROM RETIREES & MEMBERS
Taxes can be tricky, and PSPRS is working to help retirees and former members maneuver around three of the most common issues. PSPRS will be sending out 1099-R forms on January 31.
ADDRESS CHANGES: If your home address for the year of 2018 didn’t change, a 1099-R form will be sent to the address on file and can take up to 10 days to arrive. If your address did change, a copy can be requested after submitting an Address Name Change Form (FORM 9) via fax, mail or email. This form is on the PSPRS website under Forms and Resources. You may also request a re-print by contacting the PSPRS office after February 18.
ONLINE ACCESS: Any retired member can access their 1099-R form online by logging into the Members Only site. Once logged in, click on the 1099-R button which will direct you to all available current and prior 1099-R records.
EORP EMPLOYERS: USE UPDATED DC PLAN FORMS
PSPRS is requesting that EORP employers update any registration forms held on file and used for new members of the Elected Officials Defined Contribution Retirement System.
The files in question are used by new EODCRS members to choose investment funds from the available menu provided by Nationwide Retirement Solutions. The updated version of the Participation Agreement is on the PSPRS website’s forms page.
Connect with us!
Public Safety Personnel Retirement System
PSPRS Administrative Offices
(Also for CORP & EORP)
3010 E. Camelback Rd., Suite 200
Phoenix, AZ 85016
PSPRS is proud to share with its members, local boards, and employers the All Star Award which honors entities that reach significant communications achievements through the Constant Contact email platform.
In 2017, PSPRS distributed more than 120 emails that were opened more than 1 million times by more than 30,000 recipients. Thank you for all of your help and thank you for serving Arizona!
3010 East Camelback Road, Suite 200, Phoenix, AZ 85016
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