The Public Service Pension Retirement System (PSPRS) recently provided the annual actuarial valuation for the City of Prescott’s pension trusts.
Since the 0.75 cent sales tax went into effect last January as a result of the passage of Proposition 443, Prescott has contributed over $17 Million additional to paying down our unfunded liability during the period of the actuarial valuation.
This is in addition to the Annual Required Contribution (ARC), which comes from operating funds (General Fund). The Council’s Pension Policy states that “Council is committed to maintain the full ARC payment from operating funds.”
Prescott’s liability is now just over $69 million, down from $86.4 million just a year ago. The Council’s goal is 100% fully funded by June 30, 2028.
“This is a great first step,” said Mayor Greg Mengarelli. “We will continue to make strides like this every year, until we are fully funded.”
The 0.75 cent tax is scheduled to sunset when the PSPRS unfunded liability reaches $1.5 Million, OR 10 years, whichever comes first.