Attachment A - FY27 PSPRS Funding Policy

City of Goodyear 
Public Safety Personnel Retirement System 
FY2027 Pension Funding Policy 
(June 22, 2026) 
 
 
The intent of this policy is to clearly communicate the Council’s pension funding objectives 
and its commitment to our employees and the sound financial management of the City 
and to comply with statutory requirements of Arizona Revised Statute 38-863.01. 
 
Several terms are used throughout this policy: 
 
Unfunded Actuarial Accrued Liability (UAAL) – Is the difference between trust 
assets and the estimated future cost of pensions earned by employees. This UAAL 
results from actual results (interest earnings, member mortality, disability rates, etc.) 
being different from the assumptions used in previous actuarial valuations. 
 
Annual Required Contribution (ARC) – Is the annual amount required to pay into 
the pension funds, as determined through annual actuarial valuations. It is comprised 
of two primary components: normal pension cost – which is the estimated cost of 
pension benefits earned by employees in the current year; and, amortization of UAAL 
– which is the cost needed to cover the unfunded portion of pensions earned by 
employees in previous years. The UAAL is collected over a period of time referred to 
as the amortization period. The ARC is a percentage of the current payroll. 
 
Funded Ratio – Is a ratio of fund assets to actuarial accrued liability. The higher the 
ratio the better funded the pension is with 100% being fully funded. 
Intergenerational equity – Ensures that no generation is burdened by substantially 
more or less pension costs than past or future generations. 
 
The City’s police and fire employees who are regularly assigned hazardous duty 
participate in the Public Safety Personnel Retirement System (PSPRS). 
Public Safety Personnel Retirement System (PSPRS) 
PSPRS is administered as an agent multiple-employer pension plan. An agent multiple- 
employer plan has two main functions: 1) to comingle assets of all plans under its 
administration, thus achieving economy of scale for more cost efficient investments, and 
invest those assets for the benefit of all members under its administration and 2) serve 
as the statewide uniform administrator for the distribution of benefits. 
 
Under an agent multiple-employer plan each agency participating in the plan has an 
individual trust fund reflecting that agencies’ assets and liabilities. Under this plan all 
contributions are deposited to and distributions are made from that fund’s assets, each 
fund has its own funded ratio and contribution rate, and each fund has a unique annual

actuarial valuation. The City of Goodyear has two trust funds, one for police employees 
and one for fire employees. 
 
Council formally accepts the assets, liabilities, and current funding ratio of the City’s 
PSPRS trust funds from the June 30, 2025 actuarial valuation, which are detailed below. 
 
FY2027 
Trust Fund* 
Assets 
Accrued 
Liability 
Unfunded 
Actuarial 
Accrued 
Liability 
Funded 
Ratio 
Goodyear Police 
$88,115,573  
$99,600,551  
$11,484,978  88.46% 
Goodyear Fire 
$96,044,682 
$101,882,992 
$5,838,310  94.26% 
City of Goodyear Totals 
$184,160,255  
$201,483,543  
$17,323,288  91.40% 
*Includes Pension and Health for Tiers I & II 
 
PSPRS Funding Goal 
 
Pensions that are less than fully funded place the cost of service provided in earlier 
periods (amortization of UAAL) on the current taxpayers. Fully funded pension plans are 
the best way to achieve taxpayer and member intergenerational equity. 
 
The Council’s PSPRS funding ratio goal is 100% (fully funded) by June 30, 2039. 
Council established this goal for the following reasons: 
• The PSPRS trust funds represent only the City of Goodyear’s liability 
• The fluctuating cost of an UAAL causes strain on the City’s budget, affecting our 
ability to provide services 
• A fully funded pension is the best way to achieve taxpayer and member 
intergenerational equity 
Council has taken the following actions to achieve this goal: 
• Maintain ARC payment from operating revenues – Council is committed to 
maintaining the full ARC payment (normal cost and UAAL amortization) from 
operating funds.  
• Prepayment of both the Employer and Employee ARC may be made at the 
discretion of the Finance Director.  Any remaining prepayment amount will be 
applied against the UAAL at the end of the fiscal year per PSPRS administrative 
practice. 
• Consideration of additional funding appropriations from the general fund are 
reviewed annually and approved by the Council. 
Based on these actions the Council plans to achieve its goal of 100% funding by June 30, 
2039, in accordance with the amortization timeline set forth by the PSPRS June 30, 2025 
Actuarial Valuation.