TITLE
A Resolution of the Mayor and City Council of the City of Maricopa, Arizona, declaring an intent to reimburse the General Fund with credits from the City's contribution to the Public Safety Personnel Retirement System (PSPRS) for the lump sum payment to public safety personnel representing their excess contrbutions to PSPRS as determined by Hall v. EORP and Parker v. PSPRS. Discussion and Action.
AGENDA ITEM DESCRIPTION
The City and public safety employees are required to make contributions to PSPRS pursuant to Arizona Revised Statutes. The Court recently determined in Hall v. EORP and Parker v. PSPRS that public safety employees have been over contributing to PSPRS since 2011 and, to refund these excess contributions, the City will provide each affected public safety employee with a lump-sum payment in exchange for a credit to the City’s future contributions to PSPRS.
As part of the adoption of the Fiscal Year Operating Budget, the City Council will approve the use of General Fund monies for the lump-sum refunds to affected public safety employees. However, it is hereby contemplated that the refunds made to affected public safety employees from the City’s General Fund will be reimbursed by the credits to the City’s requisite future contributions to PSPRS over a period of time.
The City hereby intends to reimburse the General Fund in an amount not to exceed $1,300,000.00 for the lump-sum refund to public safety employees.
During Fiscal Year 17-18 and in each Fiscal Year thereafter until the General Fund is reimbursed in full for the lump-sum refund (not to exceed $1,300,000.00), the City hereby authorizes the reimbursement of the General Fund in an amount equal to the credits received for the City’s future PSPRS contributions.
STAFF RECOMMENDATION
Staff recommends the Mayor and City Council adopt the resolution declaring an intent to reimburse the General Fund with with credits from the City's contribution to the Public Safety Personnel Retire...
Click here for full text