HB 2035
Initials AF Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: APPROP DP 11-1-0-1
HB 2035: appropriations; PSPRS; CORP; unfunded liability
Sponsor: Representative Cook, LD 8
Caucus & COW
Overview
Appropriates $1,576,777,800 from the state General Fund (GF) in FY 2022 to the Public Safety
Personnel Retirement System (PSPRS) to reduce unfunded accrued liability for state agencies.
History
PSPRS was established in 1968 to provide a uniform statewide retirement program for public
safety personnel (A.R.S. § 38-841). It is a defined benefit pension plan that is organized into local
boards for different employing agencies (A.R.S. § 38-847). Employing agencies make
contributions based on: 1) the normal cost associated with the retirement benefit; and 2) the
unfunded accrued liability, which is based on prior benefits that are actuarially determined to be
unfunded (A.R.S. § 38-843).
The Corrections Officer Retirement Plan (CORP), which is administered by PSPRS, is similarly
organized into local boards and has a similar contribution structure (A.R.S. §§ 38-891, 38-893).
Laws 2021, Ch. 408 appropriated $500,000,000 in FY 2021 to reduce the Department of Public
Safety (DPS) unfunded accrued liability in PSPRS and $500,000,000 in FY 2021 to reduce the
Department of Corrections (ADC) unfunded accrued liability in CORP.
Provisions
Other PSPRS and CORP Groups (Sec. 1)
1. Appropriates the following sums from the GF to PSPRS group employer accounts as a FY
2022 supplemental appropriation to reduce the unfunded accrued liability:
Agency Appropriation
Arizona Game and Fish Department $97,292,500
Arizona State University Campus Police $23,602,900
University of Arizona Campus Police $15,677,800
Attorney General Investigators $9,132,900
Arizona State Parks Board Rangers $8,833,200
Department of Emergency and Military Affairs $8,559,300
Northern Arizona University Campus Police $7,734,200
Department of Liquor Licenses and Control $7,636,700
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2035
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2. Appropriates the following sums from the GF to CORP group employer accounts as a FY
2022 supplemental appropriation to reduce the unfunded accrued liability:
Agency Appropriation
Administrative Office of the Courts – Probation $421,262,900
Department of Juvenile Corrections $73,940,700
Department of Public Safety Dispatchers $6,352,000
Department of Public Safety Detention Officers $309,200
3. Directs the Board of Trustees of PSPRS to account for the appropriations to the PSPRS group
employer accounts and the CORP group employer accounts in the June 30, 2022 actuarial
valuations for the purposes of employee and employer contribution rates in FY 2024.
DPS and ADC Groups (Sec. 2)
4. Appropriates $421,859,400 from the GF as a supplemental FY 2022 appropriation to reduce
the unfunded accrued liability of the DPS PSPRS group.
5. Appropriates $474,584,100 from the GF as a supplemental FY 2022 appropriation to reduce
the unfunded accrued liability of the ADC CORP group.
6. Directs the Board of Trustees of PSPRS to account for the appropriations to the DPS PSPRS
group and the ADC CORP group in the June 30, 2022 actuarial valuations for the purposes
of employee and employer contribution rates in FY 2024.