06 09 26 Public Safety Personnel Retirement System Pension Funding Policy - Chief Financial Officer Kevin Artz

PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
PENSION FUNDING POLICY
June 9, 2026

BACKGROUND
• Arizona Revised Statute §38-863.01 requires:
• Each Governing Body shall annually adopt a pension funding 
policy for employees hired prior to July 1, 2017.
• The funding policy shall include (1) how to maintain the stability 
of contributions, (2) how and when the funding requirements 
will be met, and (3) define the funded target ratio.
• The Governing body shall formally accept the employer’s share 
of assets and liabilities, based on the actuarial report.

JUNE 2025 ACTUARIAL 
VALUATION
Trust fund
Assets
Accrued 
Liability
Unfunded 
Actuarial 
Accrued Liability
Funded Ratio
Tolleson Police
$22,684,482
$22,577,788
$(106,694)
100.5%
Tolleson Fire
$27,001,183
$27,300,729
$299,546
98.9%
City Totals
$49,685,665
$49,878,517
$192,852
99.6%

POLICE 6-YEAR FUNDED 
STATUS
Police
Unfunded Actuarial 
Accrued Liability
Funded Ratio
2025
$(106,694)
100.5%
2024
$541,038
97.5%
2023
$1,702,202
91.5%
2022
$2,381,479
87.1%
2021
$2,471,911
85.5%
2020
$2,891,918
82.1%
2019
$2,889,685
80.2%

FIRE 6-YEAR FUNDED STATUS
Fire
Unfunded Actuarial 
Accrued Liability
Funded Ratio
2025
$299,546
98.9%
2024
$2,111,016
91.8%
2023
$3,274,919
86.5%
2022
$2,795,630
87.1%
2021
$3,324,981
83.9%
2020
$2,768,440
85.8%
2019
$2,582,375
85.8%

KEY TAKEAWAYS
•
Required annual payments are made from operating funds.
•
The target date is to be 100% funded by 2036.
•
The City has paid an additional $1.0M payment in FY 25/26 and 
budgeted an additional $1.5M in FY 26/27 that are not reflected in the 
2025 actuarial report.
•
The funded ratio has improved from 80.2% in Police and 85.8% in Fire 
to 100.5% and 98.9% funded, respectively, over the past 6 years.
•
The Resolution and funding policy satisfy the requirements of Arizona 
Revised Statute §38-863.01

RECOMMENDATION
•
Staff recommends Council adopt Resolution No. 
2646 approving the PSPRS funding policy.