Arizona Public Safety Personnel Retirement Systems Solvency Assessment & Counterfactual Reform Analysis

Four years after the Arizona Public Safety Retirement System (PSPRS) adopted major stakeholder-driven reforms to stem a precipitous increase in unfunded pension liabilities resulting from faulty plan design, the system now appears to be on a sustainable financial trajectory, according to a new stres...

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Bibliographic Details
Published in:Policy File 2020
Main Authors: Gilroy, Leonard, Christensen, Zachary, Frost, Ryan
Format: Report
Language:English
Subjects:
Reason Foundation
Retirement Plans
Online Access:Request full text
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Summary:Four years after the Arizona Public Safety Retirement System (PSPRS) adopted major stakeholder-driven reforms to stem a precipitous increase in unfunded pension liabilities resulting from faulty plan design, the system now appears to be on a sustainable financial trajectory, according to a new stress test analysis prepared by the Pension Integrity Project at Reason Foundation. The historic reformwhich the Pension Integrity Project played a major technical assistance and stakeholder engagement roletogether the legislature, police and fire associations, taxpayer organizations and others to address the serious problems facing the public pension system. Our newest analysis of Arizona PSPRS, updated this month (October 2020), shows that the 2016 reforms have already achieved many of the goals set by stakeholders, including providing increased retirement security for members and retirees, reducing long-term costs for employers, taxpayers, and employees, and providing new retirement design choices to allow new public safety personnel to better match an evolving set of worker preferences.