PHX Reporter

The Maricopa County Board of Supervisors voted unanimously today to eliminate all unfunded pension debt for retiring law enforcement employees.

“This is a huge win for fiscal responsibility. While other governments are falling farther behind in funding these pensions, we are making sure these valued public servants get the retirement money they’ve earned,” said Chairman Jack Sellers, District 1. “I applaud my colleagues on the Board for their commitment to this important issue, and our Budget and Finance team for their expertise carrying out our Pension Funding Strategy.”

In recent years, the cost of employee pension plans has risen dramatically in the government sector, limiting discretionary spending. Starting with the fiscal year 2023 budget, the Board took advantage of low interest rates to pay down unfunded pension liabilities, directing $500 million into the Public Safety Personnel Retirement System (PSPRS) and Corrections Officer Retirement Plan (CORP). Today’s vote approves financing to pay off the remaining pension debt.

“Paying off this pension debt is good governance and will lead to financial savings in the long run,” said Vice Chairman Thomas Galvin, District 2. “It’s also a proactive step we can take to make sure our public safety heroes get the retirement they deserve.”

The County is using financing to pay down the pension debt because repayments are exempt from Arizona’s constitutional expenditure limitation. The County anticipates a short repayment period. As a result of this funding strategy, the overall cost to taxpayers is less than if the Board had taken no action.