Supporting Document (31ffcce5...)

City of Scottsdale — Regular Meeting (2026-06-09)

Extracted text (via pymupdf) 197072 characters

Item 21
cirrcouNpii
REPORT
+
♦
Meeting Date:
06/09/2026
Charter Provision: Provide for the orderly government and administration of the
affairs of the City
Objective:
ACTION
Adopt Public Safety Personnel Retirement System Pension Funding
Policy
Public Safety Personnel Retirement System Pension Funding Policy.
Adopt Resolution No. 13700, adopting the Fiscal Year 2026/27 Public Safety Personnel
Retirement System (PSPRS) Pension Funding Policy and accepting the City's share of assets
and liabilities under the PSPRS actuarial valuation report,
BACKGROUND
Arizona Revised Statutes § 38-863.01 requires the City Council to annually adopt a pension
funding policy for the Public Safety Personnel Retirement System (PSPRS) to communicate how
the City will maintain stability of required contributions, how and when the City's funding
requirements will be met, and the City's funded ratio target and timeline. The City also is required
to formally accept its share of the assets and liabilities based on the PSPRS actuarial report, post
the pension funding policy on its website, and transmit the policy to the PSPRS Board.
PSPRS administers the City's agent multiple-employer pension plan and maintains separate
trusts for police and fire employees. PSPRS provides annual actuarial reports for the City's
estimated assets, liabilities, and unfunded actuarial liabilities for each plan.
ANALYSIS & ASSESSMENT
Annually, PSPRS provides the City with both a police and fire actuarial report that includes the
City's assets, liabilities, unfunded actuarial liability, funding ratio, and projected contributions
required for the upcoming fiscal year.
The PSPRS actuarial reports dated June 30, 2025, reflect a funded ratio of 74.5% for police and
81.5% for fire. The City's unfunded liabilities were $132,769,013 for police and $46,346,980 for
fire. Both City and employee annual contribution rates vary depending on the employee's hire
date. The City's police contribution rates for fiscal year 2025 were 56.73% or 51.23%, and
Action Taken

City Council Report | Designate City Treasurer as CFO for FY 2025/26 Annual Expenditure Limitation Report
employee rates were 7.65% or 8.42%. The City's fire contribution rates for fiscal year 2025 were
27.74% or 22.27% and employee contribution rates were 7.65% or 9.67%. For fiscal year 2025,
the City paid the required contributions to PSPRS for police and fire totaling $26,715,103.
The fire pension plan also annually receives a fire premium insurance tax credit to the City's fire
trust fund to further reduce the City's required contribution. The amount received in fiscal year
2025 was $3,888,314. The unfunded actuarial accrued liability is shown as a City liability;
however, it will be partially paid through employee contributions and the annual allocation of the
fire insurance premium tax.
The City is currently paying down the legacy unfunded liability for the PSPRS plans and is
expected to have that portion paid by June 30, 2036, as amortized in the Jurie 30, 2025, actuarial
reports.
To comply with the statutory requirement, staff recommends accepting the City's share of
assets and liabilities under the PSPRS actuarial valuation.
RESOURCE IMPACTS
Each year, the City will formally review the funding levels and unfunded liabilities and adopt the
Pension Funding Policy.
OPTIONS & STAFF RECOMMENDATION
Recommended Approach
Adopt Resolution No. 13700 adopting the Fiscal Year 2026/27 Public Safety Personnel
Retirement System (PSPRS) Pension Funding Policy and accepting the City's share of assets and
liabilities under the PSPRS actuarial valuation report.
Proposed Next Steps
If Resolution No. 13700 is adopted, staff will post the FY 2026/27 pension funding policy on the
City's website and transmit the pension funding policy to the PSPRS Board.
RESPONSIBLE DEPARTMENT(S)
City Treasurer’s Department
STAFF CONTACT(S)
Matthew Reams, Accounting Director, (480) 312-7188, MReams@scottsdaleaz.gov
APPROVED BY
Page 2 of 3

City Council Report | Designate City Treasurer as CFO for FY 2025/26 Annual Expenditure Limitation Report
'^■2z/zD'i4,
Sonia Andrews/City Trpasurer/Chief Financial Officer
(480) 312-2364, SAndr.e.w.s(g)ScottsdaleAZ,gQy
Date
ATTACHMENTS
1. Resolution No. 13700
2. PSPRS Scottsdale Police Actuarial Report dated June 30, 2025
3. PSPRS Scottsdale Fire Actuarial Report dated June 30, 2025
Page 3 of 3

RESOLUTION NO. 13700
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE, ARIZONA,
ADOPTING THE FISCAL YEAR 2026/27 PUBLIC SAFETY PERSONNEL
retirement system pension funding POLICY; ACCEPTING THE CITY’S
SHARE OF ASSETS AND LIABILITIES UNDER THE PUBLIC SAFETY PERSONNEL
RETIREMENT SYSTEM ACTUARIAL VALUATION REPORT; REPEALING THE
PRIOR POLICY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, Arizona Revised Statutes (A.R.S.) § 38-863.01 requires the governing bodies of
all Public Safety Personnel Retirement System (PSPRS) employers to annually adopt a pension
funding policy and formally accept their share of the assets and liabilities based on the PSPRS
actuarial valuation report;
WHEREAS, on June 10, 2025, pursuant to Resolution No. 13369, the Council adopted its
annual PSPRS pension funding policy for fiscal year 2025/26 to clearly communicate the Council’s
pension funding objectives, its commitment to City employees, and the sound financial management
of the City, and to comply with A.R.S § 38-863.01;
WHEREAS, the Council desires to adopt a PSPRS pension funding policy for fiscal year
2026/27 and formally accept the City's share of assets and liabilities based on the June 30, 2025
PSPRS actuarial valuation report; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Scottsdale, Arizona,
as follows:
Section 1. The Council hereby adopts the Fiscal Year 2026/27 PSPRS Pension Funding Policy
(Policy) attached hereto as Exhibit “A" and incorporated herein by this reference.
Section 2. The Council hereby accepts, as set forth in the Policy, the City’s share of assets ,
and liabilities based on the June 30, 2025 PSPRS actuarial valuation report.
Section 3. The PSPRS Pension Funding Policy passed and adopted through Resolution No.
13369 on June 10, 2025 is hereby repealed in its entirety.
2026.
Section 4. Delayed Effective Date. The provisions of this Resolution shall be effective July 1,
PASSED AND ADOPTED by the Council of the City of Scottsdale, Arizona, this 9th day of
June, 2026.
CITY OF SCOTTSDALE, an Arizona
municipal corporation
ATTEST:
Ben Lane, City Clerk
APPROVED AS TO FORM:
Lisa Borowsky, Mayor
=uii^. Santana, City/Attemey
By: Jennifer Femand^Assistant City Attorney
Resolution No. 13700
Page 1 of 1
ATTACHMENT 1

Exhibit “A”
{
City of Scottsdale
Fiscal Year 2026/27 Public Safety Personnel Retirement
System Pension Funding Policy
The intent of this policy is to clearly communicate the Council’s pension funding objectives
and its commitment to City employees and the sound financial management of the City, and
to comply with the statutory requirements of A.R.S. § 38-863.01, including reviewing and
adopting this policy annually.
Several terms are used throughout this policy:
!
Unfunded Actuarial Accrued Liability (UAAL) - The difference between trust assets
and the estimated future cost of pensions earned by employees. UAAL results from
actual experience (interest earnings, mortality, disability rates, etc.) differing from the
assumptions used in prior actuarial valuations.
Annual Required Contribution (ARC) - The annual amount required to be paid into
the pension funds, as determined through annual actuariai valuations. It consists of two
components: (1) normal pension cost, which is the estimated cost of pension benefits
earned by employees in the current year; and (2) amortization of UAAL, which is the
cost needed to cover the unfunded portion of pensions earned in prior years. The UAAL
is amortized oyer a defined period. The ARC is expressed as a percentage of the
current payroll.
Funded Ratio - The ratio of fund assets to actuarial accrued liability. A higher ratio
indicates a better-funded pension plan, with 100% being fully funded.
Intergenerational equity - Ensures that no generation is burdened with substantially
more or less pension cost than past or future generations.
Legacy unfunded liability - Applicable to Tier 1 and Tier 2 PSPRS members whose
enrollment date is prior to July 2017.
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 adrninistered as an agent multiple-employer pension plan. An agent multiple-
employer plan has two main functions: 1) tp comingle assets of all plans under its
administration, achieving economies of scale for more cost-efficient investments, and 2) to
serve as the statewide uniform administrator for the distribution of benefits.
Resolution No. 13700
Exhibit “A”
Page 1 of 2

Under an agent multiple-employer pension plan, each participating agency has an individual
trust fund reflecting that agency’s assets and liabilities. All contributions are deposited to,
and distributions are made from, that fund’s assets. Each fund has its own funded ratio,
contribution rate, and annual actuarial valuation. The City of Scottsdale has two trust funds,
one for police employees and one for fire employees.
The Council formally accepts the assets, liabilities, and current funding ratio of the City’s
PSPRS trust funds from the June 30, 2025, actuarial valuation, as detailed below.
Trust Fund
Assets
Unfunded
Accrued Actuarial Accrued Funded
Liability
Liability
Ratio
Scottsdale Police
Scottsdale Fire
$386,990,630
$204,560,877
$519,759,643
$250,907,857
$132,769,013
$46,346,980
74.5%
81.5%
Totals
$591,551,507
$770,667,500
$179,115,993
76.8%
PSPRS Funding Goal
Pensions that are less than fully funded place the cost of service provided in earlier periods
(amortization of UAAL) on current taxpayers. Fully funded pension plans are the best way to
achieve taxpayer and member intergenerational equity. Most PSPRS funds are significantly
underfunded and fall short of this goal.
The Council’s funding ratio goal for the legacy unfunded liability is 100% (fully
funded) by June 30, 2036. Council established this goal for the following reasons:
The PSPRS trust funds represent only the City’s liability.
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:
•
Beginning in 2016, the City selected the 20-year amortization period instead of the
30-year one-time option for amortizing Tier 1 and Tier 2 unfunded liabilities, and did
not use PSPRS’s credit service model option related to the Parker case.
•
Maintain ARC payment from operating revenues - Council is committed to
maintaining the full ARC payment, or above (normal cost and UAAL amortization),
from operating funds. The estimated combined ARC for fiscal year 2025/26 is
$28,926,657, and for fiscal year 2026/27 is $30,877,962, and both can be paid from
operating funds without diminishing City services.
Based on these actions, the Council plans to achieve its goal of 100% funding for the legacy
unfunded liability by June 30, 2036, in accordance with the amortization timeline set forth in
the PSPRS June 30, 2025, actuarial valuation.
Resolution No. 13700
Exhibit “A”
Page 2 of 2

Arizona Public Safety Personnel
Retirement System
SCOTTSDALE POLICE DEPT. (025)
Actuarial Valuation
As of June 30, 2025
Contributions Applicable to the Plan/
Fiscal Year Ending June 30, 2027
FOSTER & FOSTER
ACTUARIES AND CONSULTANTS
ATTACHMENT 2

piFOSTER & FOSTER
*
ACTUARIES AND CONSULTANT ?
November 2025
Board of Trustees
Arizona Public Safety Personnel Retirement System
Re:
Actuarial Valuation as of June 30, 2025 for Scottsdale Police Dept. (025)
Dear Members of the Board,
This report details the annual actuarial valuation of the Arizona Public Safety Personnel Retirement System
(PSPRS) as of June 30, 2025. The valuation was performed to measure the plan's liability and funding levels
and to determine the actuarially appropriate funding requirements for the applicable plan year. This report
was prepared for use by the Board and those designated or approved by the Board. Use of the results for
other purposes may not be applicable and could produce significantly different results.
Data and Assumptions
In preparing this report, we have relied on personnel, plan design, and asset information supplied by PSPRS.
In our opinion, the assumptions used in the valuation, as adopted by the Board, represent reasonable
expectations of anticipated fund experience. Other sets of assumptions and methods could also be reasonable
and could produce materially different results. While we cannot verify the accuracy of all this information, the
supplied information was reviewed for consistency and reasonableness. As a result of this review, we have no
reason to doubt the substantial accuracy of the information and believe that it has produced appropriate
results. This information, along with any adjustments or modifications, is summarized in various sections of
this report.
Disclosures and Limitations
Future actuarial measurements may differ significantly from the current measurements presented in this
report due to factors such as the following: plan experience differing from that anticipated by the economic
or demographic assumptions; changes in economic or demographic assumptions; increases or decreases
expected as part of the natural operation of the methodology used for these measurements (such as the end
of an amortization period); and changes in plan provisions or applicable law. Due to the limited scope of this
report, we did not provide an analysis of these potential differences.
The computed contribution rates shown in the "Contribution Results" section should be considered minimum
contribution rates that comply with the Board's funding policy and Arizona Statutes. Users of this report
should be aware that contributions made at that rate do not guarantee benefit security. Given the importance
of benefit security to any retirement system, we suggest that contributions to the System in excess of those
presented in this report be considered.
The funding percentages and unfunded accrued liability as measured based on the actuarial value of assets
will differ from similar measures based on the market value of assets. These measures, as provided, are
13420 Parker Commons Blvd, Suite 104 Fort Myers, FL 33912 ■ (239) 433-5500 ■ www.foster-foster.com

appropriate for determining the adequacy of future contributions, but may not be appropriate for the purpose
of settling a portion or all of its liabilities.
This valuation assumes the continuing ability of the participating employers to make the contributions
necessary to fund this plan. A determination regarding whether or not the participating employers are
actually able to do so is outside our scope of expertise. Consequently, we did not perform such an analysis.
In performing the analysis, we used third-party software to model (calculate) the underlying liabilities and
costs. These results are reviewed in the aggregate and for individual sample lives. The output from the
software is either used directly or input into internally developed models to generate the costs. All internally
developed models are reviewed as part of the process. As a result of this review, we believe that the models
have produced reasonable results. We do not believe there are any material inconsistencies among
assumptions or unreasonable output produced due to the aggregation of assumptions.
AauARiAL Certification
The valuation has been conducted in accordance with all applicable laws and regulations, as well as generally
accepted actuarial principles and practices, including the applicable Actuarial Standards of Practice as issued
by the Actuarial Standards Board; specifically No. 6 for Measuring Retiree Group Benefit Obligations/No. 4 for
Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, No. 23 for Data Quality,
No. 27 for Selection of Economic Assumptions for Measuring Pension Obligations, No. 35 for Selection of
Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations, No. 44, Selection and
Use of Asset Valuation Methods for Pension Valuations, and No. 51, Assessment and Disclosure of Risk
Associated with Measuring Pension Obligations.
In our opinion, the Minimum Required Contribution set forth in this report constitutes a reasonable actuarially
determined contribution under Actuarial Standard of Practice No. 4.
The undersigned are familiar with the immediate and long-term aspects of pension/OPEB valuations and meet
the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions
contained herein. All of the sections of this report are considered an integral part of the actuarial opinions.
To our knowledge, no associate of Foster & Foster, Inc. working on this report has any direct financial interest
or indirect material interest in the Arizona Public Safety Personnel Retirement System, nor does anyone at
Foster & Foster, Inc. act as a member of the PSPRS Board of Trustees. Thus, there is no relationship existing
that might affect our capacity to prepare and certify this actuarial report.
Respectfully submitted,
Foster & Foster, Inc.
r
Bradley RUHemrichs, FSA, EA, MAAA
7
Paul M. Baugher, FSArEA, MAAA

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Police Dept (025)
Table OF Contents
Summary....................................................................................................................................................5
Contribution Results...............................................................................................................................8
Development of Employer Contributions-Tiers 1&2 Members..................................................8
Deveiopment of Employer Contributions-Tier 3 Defined Benefit (DB) Members..................... 9
Development of Contributions - Tier 3 Defined Contribution (DC) Members............................10
Contribution Rate Summary............................................................................................................. 11
Impact of Additional Contributions..................................................................................................12
Historicai Summary of Rates............................................................................................................ 13
Liability Support.....................................................................................................................................14
Liabilities and Funded Ratios by Benefit - Tiers 1 & 2...................................................................14
Liabilities and Funded Ratios by Benefit - Tier 3........................................................................... 15
Derivation of Experience (Gain)/Loss.............................................................................................. 16
Amortization of Unfunded Liabilities - Tiers 1 & 2......................................................................... 17
Amortization of Unfunded Liabilities - Tier 3..................................................................................17
Asset Support......................................................................................................................................... 18
Member Statistics.................................................................................................................................. 23
Statistical Data - Active Members....................................................................................................23
Statistical Data - Inactive Members................................................................................................ 24
Active Age, Service and Pay Distributions-Tiers 1 & 2.................................................................25
Active Age, Service and Pay Distributions - Tier 3......................................................................... 26
Age Distributions - Inactive Members............................................................................................ 27
Actuarial Assumptions and Methods.................................................................................................. 28
Plan Provisions......................................................................................................................................35
Actuarial Funding Policy......................................................................................................................41
Supplementary Information.................................................................................................................46
Glossary..............................................................................................................................................46
Discussion of Risk.............................................................................................................................. 50

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Police Dept. (025)
Summary
The regular annual actuarial valuation of the Arizona Pubiic Safety Personnei Retirement System for the
Scottsdale Police Dept., performed as of June 30, 2025, has been completed and the results are presented in
this Report. The purpose of this valuation is to:
Compute the employers' recommended contribution rates for the fiscal year ending June 30, 2027.
This information is contained in the section entitled "Contribution Results".
Compute the liabilities associated with benefits likely to be paid on behalf of current retired and active
members and compare accumulated assets with the liabilities to assess the funded condition. This
information is contained in the section entitled "Liability Support."
Valuation Date
Applicable to Fiscal Year Ending
June 30, 2025
2027
Employer Contribution Requirements (as a percentage of payroll)
Tiers 1 & 2 Members
Pension
Health
Total
52.38%
0.00%
52.38%
June 30, 2024
2026
52.55%
0.00%
52.55%
Tier 3 Members ^
Pension
Health
Total
8.22%
0.08%
8.30%
7.95%
0.09%
8.04%
Funded Status
Tiers 1 & 2 Members
Pension
Health
Total
73.8%
169.9%
74.8%
70.9%
167.9%
71.9%
Tier 3 Members
Pension
Health
Total
112.5%
201.5%
113.4%
117.2%
201.5%
118.2%
^ The Tier 3 rates shown are the calculated rates as of the valuation date and do not reflect any Legacy costs that the
employer must also contribute.
FOSTER & FOSTER
5

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Police Dept. (025)
Changes From Prior Year
Changes in the results from the prior year’s valuation can be illustrated in the following tables along with high-
level explanations for the entire System below:
Contribution Rate
Tiers 1 & 2
Tier 3 Members
Contribution Rate Last Valuation
Asset Experience
Payroll Base
Liability Experience
Additional Contribution
Assumption/Method Change
Compensation Limit Update
Other
Contribution Rate This Valuation
Pension
52.55%
(0.61%)
(0.40%)
(0.33%)
(0.05%)
0.90%
0.00%
0.32%
52.38%
Health
0.00%
(0.02%)
0.00%
0.00%
0.00%
0.00%
0.00%
0.02%
0.00%
Pension
7.95%
(0.17%)
0.00%
(0.21%)
0.00%
0.00%
0.61%
0.04%
8.22%
Health
0.09%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
(0.01%)
0.08%
Funded Status
Tiers 1 & 2
Tier 3 Members
Funded Status Last Valuation
Asset Experience
Liability Experience
Additional Contribution
Assumption/Method Change
Compensation Limit Update
Other
Funded Status This Valuation
Pension
70.9%
0.5%
0.2%
0.1%
0.0%
0.0%
2.1%
73.8%
Health
167.9%
1.3%
5.9%
0.0%
0.0%
0.0%
(5.2%i
169.9%
Pension
117.2%
2.1%
2.8%
0.0%
0.0%
0.0%
(9.6%1
112.5%
Health
201.5%
4.1%
(1.0%)
0.0%
0.0%
0.0%
(3.1%)
201.5%
Asset Experience - Asset gains and losses (relative to the assumed earnings rate) are smoothed over seven
years for Tiers 1 and 2 and over five years for Tier 3. The return on the market value of assets for the year
ending June 30, 2025 was 11.0% for Tiers 1 and 2 and 12.5% for Tier 3. On a smoothed, actuarial value of
assets basis, the average return was 7.9% for Tiers 1 and 2 and 9.2% for Tier 3. The returns exceeded the 2024
assumed earnings rate for Tiers 1 and 2 of 7.2% and the 2024 assumed earnings rate for Tier 3 of 7.0%.
rj
FOSTER & FOSTER
6

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Police Dept. (025)
Payroll Base - Under the current amortization policy for Tiers 1 and 2, the contribution rate is developed as a
level percentage of payroll. Payroll for this purpose includes members of this plan and the defined
contribution plan's members that \would have been In this plan. To the extent that actual payroll is
lower/greater than last year's projected payroll, the contribution rate will increase/decrease as a result.
Liability Experience - Experience overall was unfavorable, with key sources of loss coming from inactive
mortality, actual COLAs, and other data changes.
Additional Contribution - Monies contributed in excess of the required contribution rate in order to pay down
the unfunded liability.
Assumption / Method Change - The Board continued the decrease in the payroll growth assumption from
1.50% to 0.75%.
Compensation Limit Update - The Tier 3 compensation limit was updated, as scheduled, with a sizable
Increase over expectation.
Other - This is the combination of all other factors that could impact liabilities year-over-year, with the
primary sources being changes in benefits for continuing inactives. Tier 3 members were also impacted by
the increase in the compensation limit.
FOSTER & FOSTER
A ■■ I ;;
A*i
7

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 -Scottsdale Police Dept. (025)
Contribution Results
Development of Employer Contributions-Tiers 1 & 2 Members
Valuation Date
Applicable to Fiscal Year Ending
Pension
Normal Cost
Total Normal Cost
Employee Cost
Employer (Net) Normal Cost
Amortization of Unfunded Liability
Total Employer Cost (Pension)
Health
Normal Cost
Amortization of Unfunded Liability
Total Employer Cost (Health)
Total Employer Cost (Pension + Health)
Alternate Contribution Rate (ACR) ^
Underlying Payroll (as of valuation date)
June 30, 2025
2027
June 30, 2024
2026
Rate
21.51%
(7.65%)
13.86%
38.52%
52.38%
0.32%
(0.32%)
0.00%
52.38%
38.52%
Dollar
$ 5,736,601
(2.040,214)
3,696,387
10.273.076
13,969,463
85,342
(85.342)
0
13,969,463
26,470,929
Rate
21.39%
(7.65%)
13.74%
38.81%
52.55%
0.32%
(0.32%)
0.00%
52.55%
38.81%
Dollar
$ 6,192,143
(2.214.581)
3,977,562
11.235.020
15,212,582
92,636
(92.636)
0
15,212,582
28,520,962
The results above are based on the current amortization schedule approved by the Board of Trustees for your
individual plan (see "Actuarial Assumptions and Methods").
^ The Alternate Contribution Rate is the sum of the positive amortization rates for Tiers 1 & 2 Pension and Health (subject
to an 8% minimum) and is charged when retirees return to active status.
FOSTER & FOSTER
8

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian Repart os of June 30, 2025 - Scottsdale Police Dept. (025)
Development of Employer Contributions - Tier 3 Defined Benefit (DB) Members
Valuation Date
Applicable to Fiscal Year Ending
Pension
Total Normal Cost
Amortization of Unfunded Liability
Total Pension Cost
June 30, 2025
2027
Rate
16.44%
0.00%
16.44%
Dollar
$ 2,540,126
0
2,540,126
June 30, 2024
2026
Rate
15.90%
0.00%
15.90%
Dollar
$ 2,022,248
0
2,022,248
Health
Total Normal Cost
Amortization of Unfunded Liability
Total Health Cost
Total
Calculated Tier 3 Required EE/ER Individual Cost
Funding Policy Tier 3 Required EE/ER Individual
Cost ^
ER Legacy Cost of Tiers 1 & 2 Amort of Unfunded
Liabilities ^
Funding Policy Tier 3 ER Defined Benefit Cost
Underlying Payroll (as of valuation date)
0.15%
0.00%
0.15%
8.30%
8.19%
38.52%
46.71%
23,176
0
23,176
1,281,651
1,265,428
5,951,683
7,217,111
15,335,871
0.17%
0.00%
0.17%
8.04%
8.22%
38.81%
47.03%
21,622
0
21,622
1,021,935
1,045,464
4,936,066
5,981,530
12,530,583
^ The "Funding Policy" cost was adopted in 2023 and first reflected in the June 30, 2023 valuation. This cost is a 3-year
rolling average of the actual calculated costs. The total cost is split equally between employer and employee, in
compliance with state statutes. Note that pension and health monies are split differently for the two parties based on
IRS requirements. More information on this breakout is included in the "Historical Summary of Rates".
^ Pursuant to ARS § 38-843(B), the amortization of positive unfunded liabilities for Tiers 1 8i 2 shall be applied to all Tier
3 payroll on a level percent basis. However, while it is statutorily required to present the rates in this manner, these are
the minimums where alternate methods for paying down that unfunded liability is at the discretion of each employer.
Further, to understand the effects of reform in relation to Tier 3, compare the total rate of Tier 3 before application of
those legacy costs.
FOSTER & FOSTER
9

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Police Dept. (025)
Development of Contributions - Tier 3 Defined Contribution (DC) Members
Valuation Date
Applicable to Fiscal Year Ending
Tier 2 & 3 DB / Non-Social Security
Employee Cost
Employer Cost ^
June 30, 2025
2027
Rate
3.00%
3.00%
Dollar
June 30, 2024
2026
Rate
3.00%
3.00%
Dollar
Tier 3 DC Only
Employee Cost
Employee Health Subsidy Program Cost
Employee Disability Program Cost
Total Employee Cost
9.00%
0.18%
1.60%
10.78%
$ 72,222
1,444
12,840
86,506
9.00%
0.20%
1.54%
10.74%
$ 45,504
1,011
7.786
54,301
Employer Cost
9.00%
Employer Health Subsidy Program Cost
0.18%
Employer Disability Program Cost
1.60%
Total Employer Cost (before Legacy)
10.78%
ER Legacy Cost of Tiers 1 & 2 Amort of Unfunded
Liabilities =
38.52%
Total Employer Cost (with Legacy)
49.30%
Underlying Payroll (as of valuation date)
72,222
1,444
12.840
86,506
309,111
395,617
796,496
9.00%
0.20%
1.54%
10.74%
38.81%
49.55%
45,504
1,011
7.786
54,301
196,225
250,526
498,132
^ Employer rate is 4% for Tier 2 members for a period of time depending on the individual's membership date.
^ Pursuant to ARS § 38-843(B), the amortization of positive unfunded liabilities for Tiers 1 & 2 shall be applied to all Tier
3 payroll on a level percent basis. However, while it is statutorily required to present the rates in this manner, these are
the minimums where alternate methods for paying down that unfunded liability is at the discretion of each employer.
Further, to understand the effects of reform in relation to Tier 3, compare the total rate of Tier 3 before application of
those legacy costs.
FOSTER 8c FOSTER
10

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Police Dept. (025)
Contribution Rate Summary
Tierl
Tier 2
Tiers
Membership Date On or After
Participates in Social Security
Available Retirement Plan ^
Employee Contribution Rate
PSPRS DB Rate
PSPRS DC Rate
Employer Health Subsidy Program Cost
PSPDCRP Disability Program Rate
Total EE Contribution Rate
7/1/1968
N/A
DB Only
7.65%
7.65%
1/1/2012
Yes No
DB Only Hybrid
7.65%
7.65%
3.00%
7.65%
10.65%
7/1/2017
Yes No N/A
DB Only
Hybrid DC Only
8.19%
8.19%
3.00%
9.00%
0.18%
1.60%
8.19% 11.19%
10.78%
14.18%
38.20%
Employer Contribution Rate
PSPRS DB Normal Cost
PSPRS DB Tier 1 & 2 Legacy Cost ^
PSPRS DC Rate
Employer Health Subsidy Program Cost
PSPDCRP Disability Program Rate
Total ER Contribution Rate
52.38%
Employer Alternate Contribution Rate ■
38.52%
14.18%
14.18%
38.20% 38.20%
3.00%
52.38% 55.38%
38.52% 38.52%
8.19%
8.19%
38.52%
38.52% 38.52%
3.00%
9.00%
0.18%
1.60%
46.71%
49.71% 49.30%
38.52%
38.52% 38.52%
Exhibit summarizes employee and employer contributions based on Statute and the resuits of June 30, 2025
actuarial valuation. Pension and heaith components are combined, where appiicable.
^ Employers that pay into Social Security on behalf of their members do not participate in the Hybrid Plan.
^ Per statute (ARS § 38-843(B)), any positive unfunded liability for Tiers 1 and 2 is to be applied to all Tier 3 (DB and DC)
payrolls
^ The Alternate Contribution Rate is the sum of the positive amortization rates for Tiers 1 & 2 Pension and Health (subject
to an 8% minimum) and is charged when retirees return to active status.
FOSTER & FOSTER
11

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Police Dept (025)
Impact of Additional Contributions
Impact On
Funded Status - June 30, 2025
FYE 2027 Contribution Rate
Additional Contribution (000s)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000 $90,000 $100,000
73.8%
75.7%
77.7%
79.6%
81.6%
83.6%
85.5%
87.5%
89.4%
91.4%
93.4%
52.38%
49.96%
47.55%
45.13%
42.71%
40.30%
37.88%
35.47%
33.05%
30.63%
28.22%
Table shows the hypothetical change in the funded status and contribution rate from the June 30, 2025 actuarial valuation results for Tiers 1 & 2 if
an additional contribution of the amount shown had been made to the Fund on June 30, 2025. This illustration can help estimate the impact of
contributing additional monies to the fund in the future.
FOSTER 8t F:0STER
12

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025-Scottsdale Police Dept. (025)
Historical Summary of Rates
Pension
Health
Tiers 1 & 2
(Employer)
Tiers ^
(Employer)
Tiers
(Employee)
Valuation
Date June 30
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
Fiscal Year
Ending June 30
2023
2024
2025
2026
2027
2023
2024
2025
2026
2027
2023
2024
2025
2026
2027
Normal
Cost
13.81%
13.78%
13.92%
13.74%
13.86%
9.73%
8.96%
8.42%
8.04%
8.02%
9.73%
8.96%
8.42%
8.22%
8.19%
Unfunded
Amortization
49.46%
43.78%
42.81%
38.81%
38.52%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Total
63.27%
57.56%
56.73%
52.55%
52.38%
9.73%
8.96%
8.42%
8.04%
8.02%
9.73%
8.96%
8.42%
8.22%
8.19%
Normal
Cost
0.38%
0.37%
0.35%
0.32%
0.32%
0.19%
0.19%
0.09%
0.18%
0.17%
0.19%
0.19%
0.09%
0.00%
0.00%
Unfunded
Amortization
(0.38%)
(0.37%)
(0.35%)
(0.32%)
(0.32%)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Total
0.00%
0.00%
0.00%
0.00%
0.00%
0.19%
0.19%
0.09%
0.18%
0.17%
0.19%
0.19%
0.09%
0.00%
0.00%
^ All Tier 3 rates shown (employer and employee) are Board approved Funding Policy rates. Starting in 2023, these rates are a 3-year rolling average of calculated
EE/ER rates. Does not reflect Legacy costs that the employer must also contribute.
FOSTER & FOSTER
13

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Liability Support
Liabilities and Funded Ratios by Benefit - Tiers 1 & 2
Pension
Actuarial Present Value of Benefits (PVB)
Retirees and Beneficiaries
DROP Members
Vested Members
Active Members
Total Actuarial Present Value of Benefits
Actuarial Accrued Liability (AAL)
Aii Inactive Members
Active Members
Total Actuarial Accrued Liability
Actuarial Value of Assets (AVA)
Unfunded Actuarial Accrued Liability
PVB Funded Ratio (AVA / PVB)
AAL Funded Ratio (AVA / AAL)
Health
Actuarial Present Value of Benefits (PVB)
Retirees and Beneficiaries
DROP Members
Active Members
Total Present Value of Benefits
Actuarial Accrued Liability (AAL)
All Inactive Members
Active Members
Total Actuarial Accrued Liability
Actuarial Value of Assets (AVA)
Unfunded Actuarial Accrued Liability
PVB Funded Ratio (AVA / PVB)
AAL Funded Ratio (AVA / AAL)
June 30, 2025
$ 294,180,369
75,488,758
2,455,147
175.981.985
548,106,259
372,124,274
138.309.703
510,433,977
376,495,535
133,938,442
68.7%
73.8%
$ 2,450,953
1,035,850
2.365.299
5,852,102
3,486,803
1.866.172
5,352,975
9,092,994
(3,740,019)
155.4%
169.9%
June 30, 2024
$ 285,549,506
62,402,063
2,474,152
185.638.112
536,063,833
350,425,721
143.920.966
494,346,687
350,527,124
143,819,563
65.4%
70.9%
$ 2,269,908
893,238
2.552.277
5,715,423
3,163,146
1.988.685
5,151,831
8,650,216
(3,498,385)
151.3%
167.9%
Health liabilities were increased by $2,788 under the lateral transfer methodology. Pension liabilities were not
impacted.
FOSTER & FOSTER
14

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Liabilities and Funded Ratios by Benefit - Tier 3
June 30, 2025 June 30, 2024
Pension
Actuarial Present Value of Benefits (PVB)
Retirees and Beneficiaries
Vested Members
Active Members
Total Actuarial Present Value of Benefits
Actuarial Accrued Liability (AAL)
All Inactive Members
Active Members
Total Actuarial Accrued Liability
Actuarial Value of Assets (AVA)
Unfunded Actuarial Accrued Liability
PVB Funded Ratio (AVA / PVB)
AAL Funded Ratio (AVA / AAL)
$ 0
414,044
41.144.734
41,558,778
414,044
8.911.622
9,325,666
10,495,095
(1,169,429)
25.3%
112.5%
$ 0
329,426
28.629.575
28,959,001
329,426
6.063.422
6,392,848
7,493,261
(1,100,413)
25.9%
117.2%
Health
Actuarial Present Value of Benefits (PVB)
Retirees and Beneficiaries
Active Members
Total Present Value of Benefits
Actuarial Accrued Liability (AAL)
All Inactive Members
Active Members
Total Actuarial Accrued Liability
Actuarial Value of Assets (AVA)
Unfunded Actuarial Accrued Liability
PVB Funded Ratio (AVA / PVB)
AAL Funded Ratio (AVA / AAL)
$ 0
385.244
385.244
0
96.137
96.137
193,701
(97,564)
50.3%
201.5%
$ 0
316.333
316.333
0
76.052
76,052
153,267
(77,215)
48.5%
201.5%
The liabilities shown on this page are the liabilities for Scottsdale Police Dept. Tier 3 members.
Si FOSTER & FOSTER
Ar I jAso ( ossi". ’ AS
15

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Derivation of Experience (Gain)/Loss
Tiers 1 & 2
Tier 3
(1)
Unfunded Actuarial Accrued Liability as of June 30, 2024
(2)
Normal Cost Developed in Last Valuation
(3)
Actual Contributions
(4)
Expected Interest On (1), (2), and (3)
Expected Unfunded Actuarial Accrued Liability as of June
30, 2025: (l)+(2)-(3)+(4)
Changes to UAAL Due to Assumptions, Methods and
Benefits
(7)
Change to UAAL Due to Actuarial (Gain)/Loss
(8)
Unfunded Actuarial Accrued Liability as of June 30, 2025
(5)
(6)
Pension
143,819,563
3,977,562
21,316,591
9,887,333
136,367,867
0
(2.429.4251
133,938,442
Health
(3,498,385)
92,636
0
(245,214)
(3,650,963)
0
(89.056)
(3,740,019)
Pension
(1,100,413)
1,011,124
1,147,720
(47,029)
(1,284,038)
0
114.609
(1,169,429)
Health
(77,215)
11,447
24,859
(5,615)
(96,242)
0
(1.322)
(97,564)
FOSTER & FOSTER
16

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Amortization of Unfunded Liabilities - Tiers 1 & 2
Date Established Outstanding Balance Years Remaining
95,298,505
Pension
Health
6/30/2019
6/30/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Total
6/30/2019
6/30/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Total
11,761,913
4,327,722
12,835,873
11,315,133
(1.600,704)
133,938,442
0
0
0
0
0
(3.204.722)
(3.204.722)
11
11
12
13
14
15
10
10
10
10
10
10
Amortization Rate
27.96%
3.47%
1.21%
3.40%
2.87%
(0.39%)
38.52%
0.00%
0.00%
0.00%
0.00%
0.00%
(1.01%)
(1.01%)
Amortization of Unfunded Liabilities - Tier 3
Date Established Outstanding Balance Years Remaining
Pension
Health
6/30/2018
6/30/2019
6/30/2020
6/30/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Total
6/30/2018
6/30/2019
6/30/2020
6/30/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Total
(116)
(36,558)
51,125
(125,958)
(373,455)
(209,081)
(307,152)
(168.234)
(1,169,429)
(53)
(838)
(1,770)
(5,109)
(17,060)
(17,426)
(28,184)
(27.124)
(97,564)
3
4
5
6
7
8
9
10
3
4
5
6
7
8
9
10
Amortization Rate ^
0.00%
(0.07%)
0.08%
(0.16%)
(0.42%)
(0.21%)
(0.29%)
(0.15%)
0.00%
0.00%
0.00%
0.00%
(0.01%)
(0.02%)
(0.02%)
(0.03%)
(0.02%)
0.00%
^ By Statute, negative total amortization rates are not subtracted in Tier 3 rate calculations.
FOSTER & FOSTER
17

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdaie Police Dept. (025)
Asset Support
Statement of Changes in Fiduciary Net Position for Year Ended June 30,2025
Tiers 1 & 2
Tier 3
Pension
Health
Additions
Contributions
Member Contributions
Employer Contributions
Health Insurance Contributions
Total Contributions
Investment Income
Net Increase in Fair Value
Interest and Dividends
Other Income
Less Investment Expenses
Net Investment Income
Non-investment Income
Transfers In
Total Additions
$ 108,640,873
$ 0
1,069,823,308
0
________0
4.098,668
1,178,464,181
4,098,668
1,390,120,909
259,062,270
150,210,467
(35.364.426)
1,764,029,220
0
288,360
2,942,781,761
34,877,805
6,499,811
3,767,860
(728.394)
44,417,082
0
0
48,515,750
Pension
$ 61,005,633
59,252,766
0
120,258,399
45,105,036
8,405,753
4,873,856
(1.147.464)
57,237,181
0
206,733
177,702,313
Health
$ 0
0
1.553.978
1.553.978
1,105,501
206,021
119,427
(23.087)
1,407,862
0
0
2,961,840
Deductions
Distributions to Members
Benefit Payments
Health Insurance Subsidy
Refund of Contributions
Total Distributions
Administrative Expenses
Transfers Out
Other
Total Deductions
1,218,594,305
0
852,434
0
0
18,660,709
0
6,480
12.178.168 0
2.803.612 0
1,230,772,473
18,660,709
3,656,046
6,480
7,838,369
201,658
254,475
6,392
67,338
0
0
0
0
0
0
0
1,238,678,180
18,862,367
3,910,521
12,872
Net Increase / (Decrease)
1,704,103,581
29,653,383
173,791,792
2,948,968
Net Position Held in Trust
Prior Valuation
Beginning of the Year Adjustment
End of the Year
15,933,751,686
411,840,936
0 0
17,637,855,267
441,494,319
398,698,171
11,044,818
0 0
572,489,963
13,993,786
FOSTER & FOSTER
18

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Development of Pension Actuarial Value of Assets - Tiers 1 & 2
A. Investment Income
Al. Actual Investment Income
A2. Expected Amount for Immediate Recognition
A3. Amount Subject to Amortization
$ 1,756,190,851
1,145,387,569
610,803,282
B. Amortization Schedule
2025 Experience (A3 / 7)
2024 Experience
2023 Experience
2022 Experience
2021 Experience
2020 Experience
2019 Experience
Total Amortization
2025
87,257,612
62,439,795
10,197,720
(204,451,249)
238,978,744
(68,882,158)
(22,859,275)
Year Ended June 30
2027
2028
87,257,612
87,257,612
62,439,795
62,439,795
10,197,720
10,197,720
(204,451,249)
(204,451,249)
(204,451,249)
238,978,744
238,978,745
2026
87,257,612
62,439,795
10,197,720
2029
87,257,612
62,439,795
10,197,717
2030
87,257,612
62,439,792
2031
87,257,610
(68,882,160)
102,681,189
125,540,462
C. Actuarial Value of Assets
Cl. Actuarial Value of Assets, June 30, 2024
C2. Non-investment Net Cash Flow
C3. Preliminary Actuarial Value of Assets, June 30, 2025: (A2 + B + Cl + C2)
C4. Market Value of Assets, June 30, 2025
194,422,623
(44,556,122)
159,895,124
149,697,404
87,257,610
Employer
Total
15,769,616,678
(52,087,270)
16,965,598,166
17,637,855,267
C5. Final Actuarial Value of Assets, June 30,2025 (C3 Within 20% Corridor of C4)
16,965,598,166
391,414,066
376,495,535
D. Rates of Return
Dl. Market Value Rate of Return
D2. Actuarial Value Rate of Return
11.0%
7.9%
FOSTER & FOSTER
19

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Development of Health Actuarial Value of Assets - Tiers 1 & 2
A. Investment Income
Al. Actual Investment Income
$ 44,215,424
A2. Expected Amount for Immediate Recognition
29,137,425
A3. Amount Subject to Amortization
15,077,999
Year Ended June 30
B. Amortization Schedule 2025
2026
2025 Experience (A3 / 7)
2,154,000
2,154,000
2024 Experience
1,556,610
1,556,610
2023 Experience
193,035
193,035
2022 Experience
(6,416,469)
(6,416,469)
2021 Experience
9,257,478
9,257,478
2020 Experience
(2,898,713)
(2,898,716)
2019 Experience
(1,075,572)
Total Amortization
2,770,369
3,845,938
2027
2,154,000
1,556,610
193,035
(6,416,469)
9,257,481
2028
2,154,000
1,556,610
193,035
(6,416,471)
2029
2,154,000
1,556,610
193,036
2030
2,154,000
1,556,608
2031
2,153,999
6,744,657
C. Actuarial Value of Assets
Cl. Actuarial Value of Assets, June 30, 2024
C2. Non-investment Net Cash Flow
C3. Preliminary Actuarial Value of Assets, June 30, 2025: (A2 + B + Cl + C2)
C4. Market Value of Assets, June 30, 2025
C5. Final Actuarial Value of Assets, June 30, 2025 (C3 Within 20% Corridor of C4)
(2,512,826)
Total
406,302,544
(14,562,041)
423,648,297
441,494,319
423,648,297
3,903,646
3,710,608
Employer
2,153,999
9,476,033
9,092,994
D. Rates of Return
Dl. Market Value Rate of Return
D2. Actuarial Value Rate of Return
10.9%
8.0%
FOSTER & FOSTER
20

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30,2025 - Scottsdale Police Dept. (025)
Development of Pension Actuarial Value of Assets - Tiers 3
A. Investment Income
Al. Actual Investment Income
$ 56,982,706
A2. Expected Amount for Immediate Recognition
31,928,044
A3. Amount Subject to Amortization
25,054,662
B. Amortization Schedule 2025
2026
2025 Experience (A3 / 5)
5,010,932
5,010,932
2024 Experience
3,027,823
3,027,823
2023 Experience
885,521
885,521
2022 Experience
(3,259,379)
(3,259,381)
2021 Experience
3,551,938
Total Amortization
9,216,835
5,664,895
Year Ended June 30
2027
5,010,932
3,027,823
885,520
2028
5,010,932
3,027,823
2029
5,010,934
8,924,275
8,038,755
5,010,934
C. Actuarial Value of Assets
Cl. Actuarial Value of Assets, June 30, 2024
C2. Non-investment Net Cash Flow
C3. Preliminary Actuarial Value of Assets, June 30, 2025: (A2 + B + Cl + C2)
C4. Market Value of Assets, June 30, 2025
Total
386,897,139
116,809,086
544,851,104
572,489,963
C5. Final Actuarial Value of Assets, June 30, 2025 (C3 Within 20% Corridor of C4)
544,851,104
Employer
11,027,484
10,495,095
D. Rates of Return
Dl. Market Value Rate of Return
D2. Actuarial Value Rate of Return
12.5%
9.2%
FOSTER & FOSTER
21

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Development of Health Actuarial Value of Assets - Tiers 3
A. Investment Income
Al. Actual Investment Income
$ 1,401,470
A2. Expected Amount for Immediate Recognition
826,384
A3. Amount Subject to Amortization
575,086
B. Amortization Schedule 2025
2026
2025 Experience (A3 / 5)
115,017
115,017
2024 Experience
84,292
84,292
2023 Experience
23,872
23,872
2022 Experience
(101,792)
(101,790)
2021 Experience
128,961
Total Amortization
250,350
121,391
Year Ended June 30
2027
2028
115,017
115,017
84,292
84,290
23,870
2029
115,018
223,179
199,307
115,018
C. Actuarial Value of Assets
Total
Cl. Actuarial Value of Assets, June 30, 2024
10,710,659
C2. Non-investment Net Cash Flow
1,547,498
C3. Preliminary Actuarial Value of Assets, June 30, 2025: (A2 + B + Cl + C2)
13,334,891
C4. Market Value of Assets, June 30, 2025
13,993,786
C5. Final Actuarial Value of Assets, June 30, 2025 (C3 \A/ithin 20% Corridor of C4)
13,334,891
D. Rates of Return
Dl. Market Value Rate of Return
D2. Actuarial Value Rate of Return
11.9%
9.4%
FOSTER 8c FOSTER
Employer
203,272
193,701
22

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Member Statistics
Statistical Data-Active Members
AaiVES
Number
Average Current Age
Average Age at Employment
Average Past Service
Average Annual Salary
AaiVES (TRANSFERRED)
Number
Average Current Age
Average Age at Employment
Average Past Service
Average Annual Salary
Total Number (Active)
June 30, 2025
June 30, 2024
Tiers 1 & 2
178
44.1
27.6
16.5
$140,439
2
35.8
25.5
10.3
$128,214
180
Tier 3
139
29.9
26.8
3.1
$100,867
3
26.6
21.7
4.9
$98,180
142
Tiers 1 & 2
196
43.7
27.7
16.0
$138,795
2
34.8
25.5
9.3
Tiers
119
29.9
27.2
2.7
$99,452
3
25.6
21.7
3.9
$124,766 $102,479
198
122
FOSTER & FOSTER
23

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Statistical Data - Inactive Members
Retirees
Number
Average Current Age
Average Annual Benefit
Drop Retirees
Number
Average Current Age
Average Annual Benefit
Beneficiaries
Number
Average Current Age
Average Annual Benefit
June 30, 2025
Tiers 1&2
247
63.9
$67,268
56
53.6
$72,597
24
70.7
$57,348
Tiers
0
N/A
N/A
N/A
N/A
N/A
0
N/A
N/A
June 30, 2024
Tiers 1 & 2
240
63.3
$66,319
49
54.0
$69,199
24
73.0
$54,695
Tiers
0
N/A
N/A
N/A
N/A
N/A
0
N/A
N/A
Disability Retirees
Number
Average Current Age
Average Annual Benefit
Inactive / Vested
Number
Average Current Age
Average Accumulated
Contributions
Total Number (Inactive)
Former Members (Transferred)
64
61.5
$57,571
51
47.8
442
10
0
N/A
N/A
28
35.1
$20,075
$5,218
28
18
65
60.7
$56,304
55
46.3
433
12
0
N/A
N/A
25
33.0
$19,953
$4,587
25
16
FOSTER & FOSTER
24

Arizona Public SafetY Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Active Age, Service and Pay Distributions-Tiers 1 & 2
Age
<20
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Total
0-4
0
0
0
0
0
0
0
0
0
0
0
0
Past Service
5-9
0
0
0
6
2
2
2
1
0
0
0
13
10-14
0
0
0
8
27
13
2
0
0
0
0
50
15-19
0
0
0
0
7
43
20
12
5
2
0
89
20-24
0
0
0
0
0
1
12
5
1
0
0
19
25-29
0
0
0
0
0
0
4
3
2
0
0
9
30+
0
0
0
0
0
0
0
0
0
0
0
0
Total Count
0
0
0
14
36
59
40
21
8
2
0
180
Total Pay
0
0
0
1,839,364
4,659,810
8,675,301
5,746,333
2,898,622
1,164,591
270,566
0
25,254,587
Average Pay
0
0
0
131,383
129,439
147,039
143,658
138,030
145,574
135,283
0
140,303
FOSTER & FOSTER
25

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Active Age, Service and Pay Distributions-Tier 3
Past Service
Age
<20
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Total
0-4
0
19
58
24
6
3
2
0
0
0
0
112
5-9
0
0
14
9
4
1
2
0
0
0
0
30
10-14
0
0
0
0
0
0
0
0
0
0
0
0
15-19
0
0
0
0
0
0
0
0
0
0
0
0
20-24
0
0
0
0
0
0
0
0
0
0
0
0
25-29
0
0
0
0
0
0
0
0
0
0
0
0
30+
0
0
0
0
0
0
0
0
0
0
0
0
Total Count
0
19
72
33
10
4
4
0
0
0
0
142
Total Pay
0
1,480,784
7,293,561
3,618,124
1,073,705
434,893
413,975
0
0
0
0
14,315,042
Average Pay
0
77,936
101,299
109,640
107,371
108,723
103,494
0
0
0
0
100,810
FOSTER & FOSTER
26

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as of June 30, 2025 - Scottsdale Police Dept. (025)
Age Distributions - iNAaivE Members
Retirees, Disableds and
Beneficiaries
Average Annual
Age
Count
Pensions
<40
1
110,123
40-45
0
0
45-49
17
57,760
50-54
43
58,735
55-59
77
66,542
60-64
59
67,505
65-69
49
63,607
70-74
30
69,454
75-79
37
65,888
80-84
10
63,160
85-89
10
56,316
90-94
2
59,507
95-99
0
0
100+
0
0
Total
335
64,705
FOSTER & FOSTER
27

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Actuarial Assumptions and Methods
Interest Rate
This is the assumed earnings rate on System assets, compounded
annually, net of investment and administrative expenses.
•
Tiers 1 & 2: 7.20% per year.
•
Tier 3: 7.00% per year.
Mortality Rate
Active Lives:
PubS-2010 Employee mortality, adjusted by a factor of 1.03 for male
members and 1.08 for female members, with generational
improvements using 85% of the most recent projection scale
(currently Scale MP-2021). 100% of active deaths are assumed to be
in the line of duty.
Inactive Lives:
PubS-2010 Healthy Retiree mortality, adjusted by a factor of 1.03
for male retirees and 1.11 for female retirees, with generational
improvements using 85% of the most recent projection scale
(currently Scale MP-2021).
Beneficiaries:
PubS-2010 Survivor mortality, adjusted by a factor of 0.98 for male
beneficiaries and adjusted by a factor of 1.06 for female
beneficiaries, with generational improvements using 85% of the
most recent projection scale (currently Scale MP-2021).
Disabled Lives:
PubS-2010 Disabled mortality, adjusted by a factor of 1.08 for male
disabled members and 1.01 for female disabled members, with
generational improvements using 85% of the most recent projection
scale (currently Scale MP-2021).
The mortality assumptions sufficiently accommodate anticipated
future mortality improvements.
Retirement / DROP Rates
These rates are used to project future decrements from the active
population due to retirement. The rates below are based on a 2022
experience study using actual plan experience.
Tier 1 - reaching age 62 before attaining 20 years of service:
Age-related rates based on age at retirement:
FOSTER & FOSTER
28

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Police - 40% assumed at age 62 and 63, 35% assumed at age 64,
25% assumed at ages 65 and 66, 50% assumed at ages 67 - 69, and
100% assumed at age 70.
Fire - 25% assumed at age 62 and 63, 35% assumed at age 64, 25%
assumed at ages 65 and 66, 50% assumed at ages 67 - 69, and 100%
assumed at age 70.
Tier 1 - reaching age 62 after attaining 20 years of service:
Service-related rates based on service at retirement. See complete
tables at the end of this section.
65% are assumed to enter the DROP program while the remaining
35% are assumed to retire and commence benefits immediately.
DROP periods are assumed to be 5 years in length for future DROP
elections.
Tiers 2 & 3:
Age-related rates based on age at retirement. 50% assumed at age
53, 30% assumed at ages 54 - 59, 60% assumed at ages 60 - 63, and
100% assumed at age 64.
Disability Rate
These rates are used to project future decrements from the active
population due to disability. Complete table of rates based on age
at disability are provided at the end of this section. These rates are
based on a 2022 experience study using actual plan experience.
90% of disablements are assumed to be duty-related.
Termination Rate
These rates are used to project future decrements from the active
population due to termination. Complete table of rates based on
service at termination are provided at the end of this section. The
rates apply to members prior to retirement eligibility and are based
on a 2022 experience study using actual plan experience.
Inflation
2.50%.
Tier 3 Compensation Limit
$140,952 for calendar 2024. Assumed increases of 2.00% per year
thereafter.
Cost-of-Living Adjustment
1.85%.
FOSTER & FOSTER
29

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as of June 30, 2025 - Scottsdale Police Dept. (025)
Salary Increases
See table at the end of this section. This is an annual increase for
individual member's salary. These rates are based on a 2022
experience study using actual plan experience.
Marital Status
For active members, 85% of males and 60% of females are assumed to be
married. Actual marital status is used, where applicable, for inactive
members.
Spouse's Age
Males are assumed to be three years older than females.
Benefit Commencement
Deferred members are assumed to commence benefits as follows:
Health Care Utilization
•
Tier 1: immediate refund of contributions
•
Tiers 2 & 3 (less than 15 years service): immediate refund of
contributions
•
Tier 2 (15+ years service): life annuity payable at age 52.5
•
Tier 3 (15+ years service): life annuity payable at age 55
For active members, 70% of retirees are expected to utilize retiree
health care. Actual utilization is used for inactive members.
Funding Method
Entry Age Normal Cost Method.
Lateral Transfers
When active members transfer between employers, the new
employer's liability starts from their new date of hire with no past
service liability (i.e., all liability is accrued through normal cost). Per
PSPRS administrative decision, once the new employer's liability is
fully funded, the liability will reflect all past service liability.
Actuarial Asset Method
Each year the assumed investment income is recognized in full while
the difference between actual and assumed investment income are
smoothed over a fixed period (7 years for Tiers 1 & 2; 5 years for
Tier 3). Actuarial Assets shall not be less than 80% nor greater than
120% of the Market Value of Assets. Note that during periods when
investment performance exceeds (falls short) of the assumed rate,
the actuarial value of assets will tend to be less (greater) than the
market value of assets.
FOSTER & FOSTER
30

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Amortization Method
See Funding Policy for complete details. In short:
Tiers 1 & 2:
Any positive UAAL (assets less than funding policy targets) is
amortized using a layered approach according to a Level
Dollar method over a closed period of 15 years (phased into
from current period).
Any negative UAAL (assets greater than funding policy
targets) is amortized according to a Level Dollar method
over an open period of 10 years.
Tier 3:
Any positive UAAL (assets less than liabilities) is amortized
according to a Level Dollar method over a closed period of
10 years.
No amortization is made of any negative UAAL (assets
greater than liabilities).
Payroll Growth
0.75% per year. This is the annual increase expected on total
employer payroll.
Changes Since the Prior Valuation
The payroll growth assumption was lowered from 1.50% to 0.75%.
There were no method changes since the prior valuation.
FOSTER & FOSTER
31

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Salary Increase Rates
Age
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53+
Maricopa
Police
15.00%
14.00%
13.00%
12.00%
11.00%
10.00%
9.00%
8.00%
7.50%
7.00%
6.50%
6.00%
5.50%
5.10%
4.90%
4.70%
4.50%
4.30%
4.10%
4.00%
3.90%
3.80%
3.70%
3.60%
3.50%
3.50%
3.50%
3.50%
3.50%
3.50%
3.25%
3.25%
3.25%
3.25%
Pima
Police
12.00%
6.00%
6.00%
6.00%
6.00%
6.00%
5.50%
5.50%
5.50%
5.50%
5.25%
5.25%
5.00%
5.00%
5.00%
4.50%
4.50%
4.50%
4.00%
4.00%
4.00%
3.80%
3.60%
3.40%
3.20%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
2.75%
2.75%
Other
Police
14.00%
12.00%
10.00%
9.00%
8.00%
7.00%
6.50%
6.25%
6.00%
5.80%
5.60%
5.40%
5.20%
5.00%
4.90%
4.80%
4.70%
4.60%
4.50%
4.40%
4.30%
4.20%
4.10%
4.00%
3.90%
3.80%
3.70%
3.60%
3.50%
3.50%
3.50%
3.50%
3.50%
3.50%
Maricopa
Fire
15.00%
14.00%
13.00%
12.00%
11.00%
10.00%
9.50%
9.00%
8.50%
8.00%
8.00%
7.50%
7.00%
6.50%
6.50%
6.00%
5.50%
5.25%
5.00%
4.75%
4.75%
4.50%
4.50%
4.50%
4.50%
4.25%
4.25%
4.25%
4.00%
4.00%
3.75%
3.75%
3.75%
3.75%
Pima
Fire
12.00%
11.00%
10.00%
9.50%
9.00%
8.50%
7.50%
6.50%
5.75%
5.75%
5.50%
5.50%
5.00%
5.00%
5.00%
5.00%
5.00%
4.50%
4.50%
4.50%
4.50%
4.50%
4.00%
4.00%
4.00%
4.00%
3.75%
3.75%
3.75%
3.50%
3.50%
3.50%
3.50%
3.25%
Other
Fire
13.00%
12.00%
11.00%
10.00%
9.00%
8.00%
7.50%
7.50%
7.00%
6.50%
6.50%
6.00%
5.50%
5.50%
5.50%
5.50%
5.50%
5.00%
5.00%
5.00%
5.00%
4.50%
4.50%
4.50%
4.00%
4.00%
4.00%
3.75%
3.75%
3.75%
3.75%
3.75%
3.75%
3.75%
FOSTER & FOSTER
32

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Tier 1 Retirement Rates- reaching age 62 after attaining 20 years of service
Maricopa Pima Other Maricopa
Service
Police
Police
Police
Fire
20
28%
28%
35%
14%
21
25%
25%
35%
17%
22
15%
16%
22%
7%
23
12%
12%
12%
7%
24
8%
9%
12%
7%
25
30%
22%
25%
17%
26
42%
42%
40%
30%
27
32%
30%
28%
23%
28
32%
30%
28%
30%
29
32%
20%
28%
30%
30
35%
25%
35%
30%
31
35%
33%
30%
40%
32
60%
50%
70%
55%
33
60%
50%
70%
55%
34+
100%
100%
100%
100%
Pima
Other
Fire
Fire
20%
20%
20%
25%
13%
15%
7%
10%
7%
10%
22%
30%
26%
30%
30%
30%
30%
30%
30%
30%
30%
35%
30%
35%
30%
35%
60%
60%
100%
100%
Termination Rates
Service
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20+
Maricopa
Police
13.0%
8.0%
6.0%
4.5%
3.6%
3.3%
3.3%
3.3%
2.4%
2.4%
2.4%
1.8%
1.8%
1.3%
1.3%
0.8%
0.8%
0.8%
0.8%
0.8%
0.5%
Pima
Police
14.0%
9.0%
7.5%
7.0%
6.5%
5.0%
5.0%
4.0%
4.0%
4.0%
4.0%
3.0%
3.0%
2.0%
2.0%
1.5%
1.5%
1.0%
1.0%
1.0%
1.0%
Other
Police
13.5%
11.5%
10.5%
9.5%
9.0%
8.0%
7.0%
6.5%
6.5%
6.0%
5.0%
4.0%
4.0%
3.5%
3.0%
2.5%
2.0%
2.0%
1.8%
1.8%
1.8%
Maricopa
Fire
4.5%
3.5%
2.5%
2.0%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.0%
1.0%
1.0%
1.0%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.4%
Pima
Other
Fire
Fire
10.0%
10.5%
6.0%
8.5%
4.5%
8.0%
4.0%
8.0%
4.0%
7.0%
4.0%
5.0%
4.0%
5.0%
3.0%
4.0%
3.0%
4.0%
3.0%
3.5%
2.0%
3.0%
2.0%
2.5%
1.5%
2.0%
1.0%
1.5%
1.0%
1.4%
1.0%
1.4%
0.5%
1.4%
0.5%
1.4%
0.5%
1.4%
0.5%
0.5%
0.5%
0.5%
FOSTER & FOSTER
33

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Disability Rates
Age
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56+
Maricopa
Police
0.050%
0.050%
0.050%
0.050%
0.050%
0.050%
0.100%
0.100%
0.100%
0.100%
0.100%
0.230%
0.230%
0.230%
0.230%
0.230%
0.450%
0.450%
0.450%
0.450%
0.450%
0.520%
0.520%
0.520%
0.520%
0.520%
0.650%
0.650%
0.650%
0.650%
0.650%
0.800%
0.800%
0.800%
0.800%
0.800%
1.000%
Pima
Police
0.050%
0.050%
0.050%
0.050%
0.050%
0.050%
0.100%
0.100%
0.100%
0.100%
0.100%
0.180%
0.180%
0.180%
0.180%
0.180%
0.350%
0.350%
0.350%
0.350%
0.350%
0.650%
0.650%
0.650%
0.650%
0.650%
0.750%
0.750%
0.750%
0.750%
0.750%
0.800%
0.800%
0.800%
0.800%
0.800%
0.850%
Other
Police
0.120%
0.120%
0.120%
0.120%
0.120%
0.120%
0.160%
0.160%
0.160%
0.160%
0.160%
0.240%
0.240%
0.240%
0.240%
0.240%
0.320%
0.320%
0.320%
0.320%
0.320%
0.550%
0.550%
0.550%
0.550%
0.550%
0.750%
0.750%
0.750%
0.750%
0.750%
0.800%
0.800%
0.800%
0.800%
0.800%
0.900%
Maricopa
Fire
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.035%
0.035%
0.035%
0.035%
0.035%
0.090%
0.090%
0.090%
0.090%
0.090%
0.150%
0.150%
0.150%
0.150%
0.150%
0.170%
0.170%
0.170%
0.170%
0.170%
0.300%
0.300%
0.300%
0.300%
0.300%
0.700%
0.700%
0.700%
0.700%
0.700%
1.100%
Pima
Fire
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.100%
0.100%
0.100%
0.100%
0.100%
0.150%
0.150%
0.150%
0.150%
0.150%
0.300%
0.300%
0.300%
0.300%
0.300%
0.420%
0.420%
0.420%
0.420%
0.420%
0.750%
0.750%
0.750%
0.750%
0.750%
0.800%
Other
Fire
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.060%
0.060%
0.060%
0.060%
0.060%
0.140%
0.140%
0.140%
0.140%
0.140%
0.250%
0.250%
0.250%
0.250%
0.250%
0.420%
0.420%
0.420%
0.420%
0.420%
0.750%
0.750%
0.750%
0.750%
0.750%
1.000%
FOSTER & FOSTER
34

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as afJune 30, 2025 - Scottsdale Police Dept. (025)
Plan Provisions
The following is a summary of the benefit provisions provided in Title 38, Chapter 5, Article 4 of the
Arizona Revised Statutes.
Membership
Full-time employees of an eligible group, prior to attaining age 65,
who are engaged to work for more than six months in a caiendar
year. Tier 3 Defined Contribution members are able to elect
participation in post-retirement health insurance subsidy.
Benefit Tiers
Benefits differ for members based on their hire date:
Tier 1: Hired before January 1, 2012
Tier 2: Hired on or after January 1, 2012 but before July 1, 2017
Tier 3: Hired on or after Juiy 1, 2017
Compensation
Compensation is the amount including base saiary, overtime pay, shift
and miiitary differential pay, compensatory time used in lieu of
overtime pay, and hoiiday pay, paid to an employee on a regular
payroll basis and longevity pay paid at least every six months for which
contributions are made to the System. For Tier 3 members,
compensation is limited by statutory cap ($110,000 with adjustments
by the Board).
Average Monthly Benefit
Compensation
Tier 1: The highest compensation paid to member during three
consecutive years out of the last 20 years of Credited Service, divided
by months.
Tier 2: The highest compensation paid to member during five
consecutive years out of the iast 20 years of Credited Service, divided
by months.
Tier 3: The highest compensation paid to member during five
consecutive years out of the last 15 years of Credited Service, divided
by months.
Credited Service
Totai periods of service, both before and after the member's date of
participation, for which the member made contributions to the fund.
FOSTER & FOSTER
35

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as of June 30, 2025 - Scottsdale Police Dept. (025)
Normal Retirement
Date
Tier 1: First day of month following attainment of 1) 20 years of service
or 2) 62nd birthday and completion of 15 years of service.
Tier 2: First day of month following the attainment of age 52.5 and
completion of 15 years of service.
Tier 3: First day of month following the attainment of age 55 and
completion of 15 years of service.
Benefit
Tier 1: 50% of Average Monthly Benefit Compensation, adjusted
based on Credited Service as follows (maximum benefit of 80% of
Average Monthly Benefit Compensation):
Credited Service
15 years, but less than 20
20 years, but less than 25
25+ years
Benefit Adjustment
Reduced 4% per year less than 20
Plus 2% per year between 20 and 25
Plus 2.5% per year above 20
Tier 2: Benefit multiplier (below) times Average Monthly Benefit
Compensation times Credited Service (maximum benefit of 80% of
Average Monthly Benefit Compensation):
Credited Service
15 years, but less than 17
17 years, but less than 19
19 years, but less than 22
22 years, but less than 25
25+ years
Benefit Multiplier
1.50%
1.75%
2.00%
2.25%
2.50%
Tier 3: Benefit multiplier (below) times Average Monthly Benefit
Compensation times Credited Service (maximum benefit of 80% of
Average Monthly Benefit Compensation):
Credited Service
15 years, but less than 17
17 years, but less than 19
19 years, but less than 22
22 years, but less than 25
25+ years
Benefit Multiplier
1.50%
1.75%
2.00%
2.25%
2.50%
FOSTER & FOSTER
36

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Form of Benefit
For married retirees, an annuity payable for the life of the member
with 80% continuing to the eligible spouse upon death. For
unmarried retirees, the normal form is a single life annuity.
Early Retirement
Date
Benefit
Form of Benefit
Only applicable to Tier 3 members
Attainment of age 52.5 and 15 years of Credited Service.
Actuarial equivalent of Normal Retirement benefit.
Same as Normal Retirement
Disability Benefit - Accidental (duty-related)
Eligibility
Total and permanent disability incurred in performance of duty.
Benefit Amount
A maximum of:
a. ) 50% of Average Monthly Benefit Compensation, and;
b. ) The monthly retirement pension that the Member is
entitled to receive if he or she retired immediately.
Disability Benefit - Ordinary (not duty-related)
Eligibility
Total and permanent disability not incurred in performance of duty.
Benefit Amount
Normal Retirement pension that the member is entitled to receive,
prorated based on Credited Service earned over the required Credited
Service for Normal Retirement (maximum ratio of 1).
Disability Benefit - Other
Temporary
Benefit equals 1/12 of 50% of compensation during year preceding
date of disability. Payments terminate after 12 months.
Catastrophic
Benefit equals 90% of Average Monthly Benefit Compensation. After
60 months member receives greater of 62.5% Average Monthly
Benefit Compensation and accrued normal pension.
Pre-Retirement Death Benefit
Service Incurred
Payable following death of active member
100% of Average Monthly Benefit Compensation, reduced by child's
pension.
FOSTER & FOSTER
37

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as afJune 30, 2025 - Scottsdale Police Dept. (025)
Non-Service Incurred
80% of benefit based on calculation for accidental disability
retirement.
Child's Pension
Guardian's Pension
Accumulated Contributions
10% of pension for each child (maximum 20% paid) based on
calculation for accidental disability retirement. Payable to dependent
child under age 18 (23 if full-time student).
Same as spouse's pension. Payable (along with child's pension) when
no spouse is being paid and there is at least one child under 18 (23, if
full-time student).
Any contributions remaining upon the death of the last beneficiary
shall be paid as a lump sum.
Vesting (Termination)
Vesting Service Requirement
Tier 1:10 years.
Non-Vested Benefit
Tiers 2 & 3:15 years.
Tier 1: Lump sum payment of accumulated contributions, plus
additional amount based on years of Credited Service.
Service
Less than 5 years
5 years
6 years
7 years
8 years
9 years
10+ years
Additional % of Contributions
0%
25%
40%
55%
70%
85%
100%
Vested Benefit
Tiers 2 & 3: Lump sum payment of accumulated contributions, with
interest at rate determined by the Board.
Tier 1: Deferred retirement annuity based on two times member's
accumulated contributions, deferred to age 62. Member is not
entitled to survivor benefits, benefit increases, or group health
insurance subsidy.
Tiers 2 & 3: Calculated same as normal retirement pension. Payable
if contributions left in fund until reach age requirement. Member is
entitled to survivor benefits, benefit increases, and group health
insurance subsidy.
Cost-of-Living Adjustment
Payable to retired member or survivor of retired member
Tiers 18i 2: Compound cost-of-living adjustment on base benefit. First
FOSTER & FOSTER
38

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
payment is made on July 1, 2018, with annual adjustments effective
every July 1 thereafter. Adjustment does not apply while in DROP.
Cost-of-living adjustment will be based on the average annual
percentage change in the Metropolitan Phoenix-Mesa Consumer Price
Index published by the United States Department of Labor, Bureau of
Statistics. Maximum increase of 2%.
Tier 3: Compound cost-of-living adjustment on base benefit beginning
earlier of first calendar year after the 7th anniversary of retirement or
when the retired member reaches 60 years of age.
A cost-of-living adjustment shall be paid on July 1 each year that the
funded ratio for members hired on or after July 1,2017 is 70% or more.
The cost-of-living adjustment will be based on the average annual
percentage change in the Metropolitan Phoenix-Mesa Consumer Price
Index published by the United States Department of Labor, Bureau of
Statistics. The cost-of-living adjustment will not exceed:
2%, if funded ratio for members who are hired on or after July
1, 2017 is 90% or more;
•
1.5%, if funded ratio for members who are hired on or after
July 1, 2017 is 80-90%;
1%, if funded ratio for members who are hired on or after July
1, 2017 is 70-80%.
Deferred Retirement Option Plan (DROP)
Eligibility
DROP Period
Tier 1 and 20 years of Credited Service.
Maximum 84 months.
Member Contributions
Benefit Amount
Cease upon DROP entry.
Calculated based on Credited Service and average monthly
compensation as of the beginning of the DROP period, credited to
DROP participation account for DROP period.
Interest on DROP
Participation Account
Beginning Year
July 1, 2016
July 1, 2018
July 1, 2022
Interest Rate
7.40%
7.30%
7.20%
FOSTER & foster
39

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Payment of DROP
Participation Account
Payment Monthly Benefit
Payable as lump sum distribution to Public Safety Personnel
Defined Contribution Retirement Plan at earlier of 1) end of DROP
period, 2) at termination, or 3) five years.
System commences payment of benefit amount at the earlier of 1)
the end of the DROP period and 2) at termination
Post-Retirement Health Insurance Subsidy
Eligibility
Maximum Subsidy Amounts (monthly)
Retired member or survivor who elect health coverage provided by
the state or participating employer.
Member Only With Dependents
Medicare Eligible
$100
$170
One w/ Medicare
N/A
$215
Not Medicare Eligible
$150
$260
Contributions
Employee
Employer
Tiers 1 & 2: 7.65% (effective July 1, 2023).
Tier 3; 50% of total contribution, which is Normal Cost plus a level-
dollar amortization of unfunded actuarial accrued liability over a
closed period not to exceed 10 years.
Tiers 1 & 2: Normal Cost plus amortization of unfunded actuarial
accrued liability over a closed period not to exceed 20 years (subject
to one-time election to extend to closed period not to exceed 30
years).
Changes Since the Prior Valuation
None.
Tier 3: 50% of total contribution, which is Normal Cost plus a level-
dollar amortization of unfunded actuarial accrued liability over a
closed period not to exceed 10 years.
FOSTER & FOSTER
40

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Actuarial Funding Policy
A pension plan funding policy describes how pension funding will improve for underfunded plans or maintain
funded benefits for funded plans over time for those benefits defined in Arizona Revised Statutes (ARS). Those
benefits defined in ARS are to be equitably managed and administered by the Arizona Public Safety Personnel
Retirement System (PSPRS agency).
This Actuarial Funding Policy identifies the funding objectives and elements of the actuarial funding policy set
by the Board for the PSPRS agency. The Board adopted this Funding Policy to help ensure the systematic
funding of future benefit payments for members of the retirement systems as established by the legislature.
This policy covers all retirements systems administered by the Board; The Public Safety Personnel Retirement
System (PSPRS); the Correction Officers Retirement Plan (CORP); and the Elected Officials Retirement Plan
(EORP).
To achieve the systematic funding of future benefits, metrics are identified to measure the progress, or the
lack of progress, over time to identify trends. These trends inform the continuation of the current policies or
identify areas of needed research for consideration.
This funding policy is reviewed annually and adopted by the Board in accordance with ARS 38-863.02. This
policy was reviewed and adopted by the Board in September 2025.
PSPRS Statement of Purpose
The Purpose of the Public Safety Personnel Retirement System is to provide uniform, consistent, and equitable
statewide retirement programs for those who have been entrusted to our care.
Funding Objectives
1. Maintain adequate assets so that current plan assets, plus future contributions and investment earnings,
are sufficient to fund all benefits expected to be paid to members and their beneficiaries.
a.
Corollary la: Current and future contributions should be calculated based upon assumptions that
reflect the Board's best estimate of future experience and methods that appropriately allocate
costs to address generational equity.
b.
Corollary lb: While the shorter-term objective is to fully fund the Actuarial Accrued Liability (AAL)
that estimates benefits earned as of the valuation date, contributions should target the long-term
Present Value of Benefits (PVB) to fund all benefits and help offset risks.
c.
As closed plans mature, the target funding should be 110% of AAL or 100% of PVB, whichever is
greater.
POSTER & FOSTER
41

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
2.
Maintain public policy goals of accountability and transparency through stakeholder communication and
education. Each policy element is clear in intent and effect, and each should be considered in a balanced
approach to determine how and when the funding requirements of the plan will be met.
a. Corollary 2a: Board shall provide stakeholders with separate reports and tools to help explain
current results as well as to help model future funding requirements.
3.
Promote intergenerational equity. Defined benefit pensions are designed with a long-term perspective
and designed to minimize contribution volatility that cannot avoid some level of generational cost shift.
However, the goal is that each generation of members and employers (taxpayers) should, to the extent
possible, incur the cost of benefits for the employees who provide services to them, rather than shifting
those costs to other generations of members and employers (taxpayers).
a. Corollary 3a: A systematic reduction of the Unfunded Actuarial Accrued Liability (UAAL) over a
reasonable time period is paramount to achieving this objective.
Consideration can be given to reduce volatility, to the extent possible, of employer and employee contribution
rates as long as the integrity of the objectives listed above is not compromised.
Elements of Actuarial Funding Policy
1. Actuarial Cost Method
a. The Entry Age Normal level percent of pay actuarial cost method of valuation shall be used in
determining the AAL and Normal Cost. Differences in the past between assumed experience and
actual experience ("actuarial gains and losses") shall become part of the AAL. The Normal Cost
shall be determined on an individual basis for each active member.
2.
Asset Smoothing Method
a.
The investment gains or iosses of each valuation period, resulting from the difference between
the actual investment return and assumed investment return, shall be recognized annually in levei
amounts over five years (Tier 3) or seven years (Tiers 1 and 2) in calculating the Actuarial Value of
Assets (AVA).
b. The AVA so determined shall be subject to a 20% corridor relative to the Market Value of Assets
(MVA).
3. Amortization Method (Unfunded Amounts)
a.
The AVA is subtracted from the computed AAL. Any unfunded amount is amortized as a level
percent of payroll over a closed period.
b. The unfunded liabilities, for EORP and Tiers 1 & 2 for both PSPRS and CORP, determined in the
6/30/2019 actuarial valuation will become the initial layer for each employer beginning with the
6/30/2020 actuarial valuation and amortized using the current closed year period for that
empioyer and continue to decrease each year.
i. The payroll growth rate assumption used to amortize the PSPRS Unfunded Liability will be
decreased by 0.75% each year with the intention of ultimately achieving 0.0%.
foster & FOSTER
42

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as of June 30, 2025 - Scottsdale Police Dept. (025)
ii. The payroll growth rate used to amortize the Correction Officers Retirement Plan (CORP)
Unfunded Liability will be reduced by 0.5% until 0.0% is reached.
iii. The payroll growth rate used to amortize the Elected Officials Retirement Plan (EORP)
Unfunded Liability will be 0.0%.
c.
Gains and losses, for EORP and Tiers 1 & 2 for both PSPRS and CORP, for each employer beginning
with the 6/30/2020 actuarial valuation will be amortized as a new layer over the same
amortization period as the regular unfunded liability to a minimum of 15 years. Once the
amortization period for each employer decreases to 15 years, each subsequent year's gains and
losses will be amortized as a new 15-year closed layer.
i. The payroll growth rate used to amortize the unfunded liability for all Plans under this
paragraph will be 0.0% (i.e. level-dollar amortization).
d. Tier 3 amortization methods are established in ARS 38-843.G and ARS 38-891.K.
4.
Amortization Method (Overfunded Amounts)
a. The AVA is subtracted from the target funding level (greater of 110% of AALor 100% of PVB). Any
overfunded amount is amortized as a level dollar amount over an open 10-year period.
5. Tier 3 Rate Calculation
a.
Tier 3 is distinct from Tiers 1 & 2 in PSPRS and CORP as the contributions are a shared percentage
(50/50 split for PSPRS: for CORP, employer 1/3 and member 2/3 of the normal cost plus 50 percent
each, member and employer, of the UAAL amortization) for employers and members based on
the actuarially calculated rate. To reduce the impact of volatility to rates, the Tier 3 rates will be
smoothed over a 3-year rolling period based on the actuarially calculated rates for each year's
actuarial valuation.
i.
Beginning with the 6/30/2023 valuation, the prospective Tier 3 rates set by the Board of
Trustees are planned to be a rolling average of the actuarial calculated Tier 3 rates using
the 6/30/2023, 6/30/2022 and 6/30/2021 rates in the initial process.
ii.
As assumptions may be updated year-to-year, the prior calculated rates are not updated
for those changes, the prior calculated rates are used to smooth in the new rates.
b. At the May 2023 Board Meeting, the Board changed the assumed rate of return for CORP Tier 3,
which was at 7.2%, to match the 7.0% assumed rate of return for PSPRS Tier 3. The Board
committed to continue to monitor market conditions and directions with the intent to ultimately
adopt a single assumed rate of return for all investments for retirement systems/plans
administered by PSPRS agency.
foster & FOSTER
43

Arizona Public Safety Personnel Retirement System
Actuarial Valuatior) as of June 30, 2025 - Scottsdale Police Dept. (025)
6.
Assumed Rate of Return (ARR)
a. At the May 2023 Board Meeting, the Board changed the assumed rate of return for CORP Tier 3,
which was at 7.2%, to match the 7.0% assumed rate of return for PSPRS Tier 3. The Board will
continue to monitor market conditions and directions with the intent to ultimately adopt a single
assumed rate of return for all investments for retirement systems/plans administered by PSPRS
agency.
7. EORP Floor Considerations
a. Establish a "floor" for EORP based on the immediately previous valuation by adjusting payroll
growth, amortization periods of the original layer or other possible options, to improve funding
in maintaining contribution levels opposed to reducing employer contributions.
Metrics TO Monitor Funding Objectives
1. Appropriateness of Assumptions - Gain/Loss Experience (Corollary la)
a.
Metric: Do the cumulative gain/loss layers over the prior five years exceed 8% of plan assets?
b. Measurement: History of annual gain/loss (split by asset and liability experience) and five-year
cumulative results will be tracked.
c.
Action Plan: This metric assumes that a full experience study is performed at least every five years so
objective of measurement is to monitor interim experience. If the metric answer is yes, a review of
the sources or causes of gains and losses should be analyzed and presented to the Advisory
Committee to provide a recommendation to the Board of Trustees. The analysis and presentation are
intended to provide a basis for consideration if assumption changes are warranted between full
experience studies.
2.
Funding Targets (Corollary lb)
a.
Metric: Has the funded status, on both an AAL and PVB basis when compared to the MVA, increased
over a five-year period?
b. Measurement: History of funded status measures will be tracked.
c.
Action Plan: If the answer is no and not readily explainable (e.g., significant assumption change), a
review of the reason(s) for the decrease should be researched and presented to the Advisory
Committee to provide a recommendation to the Board of Trustees. The analysis and presentation
are intended to provide a basis for consideration if changes to assumptions and/or methods are
warranted between full experience studies.
3. Communication with Stakeholders (Corollary 2a)
a.
Metric: Have reports and budgeting tools been provided to stakeholders in a timely fashion?
b. Measurement: Yes/No answer based on input from PSPRS administrator. (An annual standard survey
of stakeholders - 3 to 5 questions.)
c.
Action Plan: If the answer is no, and periodically regardless (e.g., every three years), PSPRS staff will
revisit this metric to report to the Advisory Committee to provide a recommendation to the Board of
Trustees if current reports / tools are sufficient and if the delivery timing is appropriate.
FOSTER & FOSTER
44

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as of June 30, 2025 - Scottsdale Palice Dept. (025)
4. Timely Recognition of Costs (Corollary 3a)
a. Metric: Has the percentage of unfunded liability subject to negative amortization decreased over a
five-year lookback period?
b. Measurement: History of unfunded liability subject to negative amortization as a percentage of total
unfunded liability vyill be tracked.
c.
Action Plan: If the answer is no, and not readily explainable (e.g., adopted assumption changes being
phased in are anticipated to address negative amortization), a review of the reason(s) for negative
amortization should be researched and presented to the Advisory Committee to provide a
recommendation to the Board of Trustees. The analysis and presentation are intended to provide a
basis for consideration if changes to assumptions and/or methods are warranted between full
experience studies.
FOSTER & FOSTER
45

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept (025)
Supplementary Information
Glossary
Accrued Benefit
The benefit earned as of a specific date based on the provisions of
the pian and the member's age, service, and salary as of that date.
Actuarial Accrued Liability
The portion of the anticipated future benefits allocated to years
prior to the valuation date determined according to the plan's
Actuarial Cost Method.
Actuarial Value of Assets
The asset value used in the valuation to determine contribution
requirements. It represents the plan's Market Value of Assets (see
below), with adjustments according to the plan's Actuarial Asset
Method. These adjustments produce a "smoothed" value that is
likely to be less volatile from year to year than the Market Value of
Assets.
Actuarial Assumptions
Assumptions regarding the occurrence of future events affecting
plan costs. These assumptions include rates of investment earnings,
changes in compensation, rates of mortality, withdrawal,
disablement, and retirement as well as statistics related to marriage
and family composition.
Actuarial Cost Method
A method of determining the portion of the cost of a plan to be
allocated to each year; sometimes referred to as the "actuarial
funding method." Each cost method allocates a certain portion of
the actuarial present value of benefits between the Actuarial
Accrued Liability and future normal costs to ensure the plan is
adequately and systematically funded.
Actuarial Gain or Loss
The change in Unfunded Actuarial Accrued Liability resulting from
experience different from Actuarial Assumptions. Gains decrease
the Unfunded Actuarial Accrued Liability and losses increase the
Unfunded Actuarial Accrued Liability.
FOSTER & FOSTER
46

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Actuarial Present Value
The estimated amount of funds required as of a specified date to
provide a payment or series of payments in the future. It is
determined by discounting future payments at predetermined rates
of interest, and by probabilities of payments between the specified
date and the expected date of payment.
Amortization Payment
The portion of the plan contribution designated to pay interest and
reduce the outstanding principal balance of Unfunded Actuarial
Accrued Liability. If the amortization payment is less than the
accrued interest on the Unfunded Actuarial Accrued Liability the
outstanding principal balance will increase.
Decrements
Events which result in the termination of membership in the system
such as retirement, disability, withdrawal, or death.
Entry Age Normal Cost Method
Under this method, the normal cost is the sum of the individual
normal costs for all active participants. For an active participant,
the normal cost is the participant's normal cost accrual rate,
multiplied by the participant's current compensation.
The normal cost accrual rate equals:
(i) the present value of future benefits for the participant,
determined as of the participant's entry
age, divided by
(ii) the present value of the compensation expected to be paid to
the participant for each year of the participant's anticipated future
service, determined as of the participant's entry age.
In calculating the present value of future compensation, the salary
scale is applied both retrospectively and prospectively to estimate
compensation in years prior to and subsequent to the valuation
year based on the compensation used forthe valuation.
The accrued liability is the sum of the individual accrued liabilities
for all participants and beneficiaries. A participant's accrued liability
equals the present value, at the participant's attained age, of future
benefits less the present value at the participant's attained age of
the individual normal costs payable in the future. A beneficiary's
accrued liability equals the present value, at the beneficiary's
FOSTER & FOSTER
47

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
attained age, of future benefits. The unfunded accrued liability
equals the total accrued liability less the actuarial value of assets.
Under this method, the entry age used for each active participant is
the participant's age at the time he or she would have commenced
participation if the plan had always been in existence under current
terms, or the age as of which he or she first earns service credits for
purposes of benefit accrual under the current terms of the plan.
Funded Ratio
A measure of the ratio of the plan assets to liabilities of the system.
Typically, the assets used in the measure are the Actuarial Value of
Assets as determined by the asset valuation method. The Funded
Ratio depends not only on the financial strength of the plan but also
on the asset valuation method used to determine the assets and on
the Actuarial Cost Method used to determine the liabilities.
Interest Rate
The assumed long-term rate of return on plan assets.
Market Value of Assets
The fair market value of plan assets as of the valuation date.
Normal Cost
The current year's cost for benefits yet to be funded. Under the
Entry Age Normal cost method, it is determined for each participant
as the present value of future benefits, determined as of the
Member's entry age, amortized as a level percentage of
compensation over the anticipated number of years of
participation, determined as of the entry age.
Present Value of Benefits
The single sum value on the valuation date of all future benefits to
be paid to current plan participants.
Projected Annual Payroll
The projected annual rate of pay for the fiscal year following the
fiscal year beginning on the valuation date of all covered Members.
Projected Benefits
The benefits expected to be paid in the future based on the
provisions of the plan and the Actuarial Assumptions. The projected
values are based on anticipated future advancement in age and
accrual of service as well as increases in salary paid to the
participant.
FOSTER & FOSTER
48

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as of June 30, 2025 - Scottsdale Police Dept. (025)
Total Annual Payroll
The projected annual rate of pay for the fiscal year beginning on the
valuation date of all covered Members.
Ultimate Cost
The total cost to the plan once the last benefit has been paid. The
Ultimate Cost equals
Benefit Payments
Plus: Expenses
Less: Investment Income
The Ultimate Cost is independent of the Actuarial Cost Method
selected.
Unfunded Actuarial Accrued
Liability
The difference between the Actuarial Accrued Liability and the
Actuarial Value of Assets. Under the Entry Age Normal Actuarial
Cost Method, an actuarial gain or loss, based on actual versus
expected UAAL, is determined in conjunction with each valuation
of the plan.
FOSTER & FOSTER
49

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Discussion of Risk
ASOP No. 51, Assessment and Disclosure of Risk Associated with Measuring Pension Obligations and
Determining Pension Plan Contributions, states that the actuary should identify risks that, in the actuary's
professional judgment, may reasonably be anticipated to significantly affect the plan's future financial
condition.
Throughout this report, actuarial results are determined using various actuarial assumptions. These results
are based on the premise that all future plan experience will align with the plan's actuarial assumptions;
however, there is no guarantee that actual plan experience will align with the plan's assumptions. It is possible
that actual plan experience will differ from anticipated experience in an unfavorable manner that will
negatively impact the plan's funded position.
Below are examples of ways in which plan experience can deviate from assumptions and the potential impact
of that deviation. Typically, this results in an actuarial gain or loss representing the current-year financial
impact on the plan's unfunded liability of the experience differing from assumptions; this gain or loss is
amortized over a period of time determined by the plan's amortization method. When assumptions are
selected that adequately reflect plan experience, gains and losses typically offset one another in the long term,
resulting in a relatively low impact on the plan's contribution requirements associated with plan experience.
When assumptions are too optimistic, losses can accumulate over time and the plan's amortization payment
could potentially grow to an unmanageable level.
•
Investment Return: When the rate of return on the Actuarial Value of Assets falls short of the
assumption, this produces a loss representing assumed investment earnings that were not realized.
Further, it is unlikely that the plan will experience a scenario that matches the assumed return in each
year as capital markets can be volatile from year to year. Therefore, contribution amounts can vary in
the future.
•
Salary Increases: When a plan participant experiences a salary increase that was greater than
assumed, this produces a loss representing the cost of an increase in anticipated plan benefits for the
participant as compared to the previous year. The total gain or loss associated with salary increases
for the plan is the sum of salary gains and losses for all active participants.
•
Payroll Growth: The plan's payroll growth assumption, if one is used, causes a predictable annual
increase in the plan's amortization payment in order to produce an amortization payment that
remains constant as a percentage of payroll if all assumptions are realized. If payroll increases less
than the plan's payroll growth assumption, the plan's amortization payment can increase significantly
as a percentage of payroll even if all assumptions other than the payroll growth assumption are
realized.
•
Demographic Assumptions: Actuarial results take into account various potential events that could
happen to a plan participant, such as retirement, termination, disability, and death. Each of these
potential events is assigned a liability based on the likelihood of the event and the financial
consequence of the event for the plan. Accordingly, actuarial liabilities reflect a blend of financial
FOSTER & FOSTER
50

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
consequences associated with various possible outcomes (such as retirement at one of various
possible ages). Once the outcome is known (e.g. the participant retires) the liability is adjusted to
reflect the known outcome. This adjustment produces a gain or loss depending on whether the
outcome was more or less favorable than other outcomes that could have occurred.
• Contribution risk: This risk results from the potential that actual employer contributions may deviate
from actuarially determined contributions, which are determined in accordance with the Board's
funding policy. The funding policy is intended to result in contribution requirements that if paid when
due, will result in a reasonable expectation that assets will accumulate to be sufficient to pay plan
benefits when due. Contribution deficits, particularly large deficits and those that occur repeatedly,
increase future contribution requirements and put the plan at risk for not being able to pay plan
benefits when due.
iMPAa OF Plan Maturity on Risk
For newer pension plans, most of the participants and associated liabilities are related to active members who
have not yet reached retirement age. As pension pians continue in operation and active members reach
retirement ages, liabiiities begin to shift from being primarily related to active members to being shared
amongst active and retired members. Plan maturity is a measure of the extent to which this shift has occurred.
It is important to understand that plan maturity can have an impact on risk toierance and the overail risk
characteristics of the plan. For example, closed plans with a large amount of retired iiability do not have as
long of a time horizon to recover from losses (such as losses on investments due to lower than expected
investment returns) as plans where the majority of the liability is attributabie to active members. For this
reason, less tolerance for investment risk may be warranted for highly mature closed plans with a substantial
inactive liability. Similarly, mature closed plans paying substantial retirement benefits resulting in a small
positive or net negative cash flow can be more sensitive to near term investment volatiiity, particularly if the
size of the fund is shrinking, which can resuit in less assets being availabie for investment in the market.
To assist with determining the maturity of the pian, we have provided some reievant metrics in the table
following titled "Plan Maturity Measures and Other Risk Metrics". For a better understanding of the overall
Plan and the impact of these risks, please refer to the consolidated PSPRS valuation report.
Low Default Risk Obligation Measure
ASOP No. 4, Measuring Pension Obiigations and Determining Pension Pian Costs or Contributions, was revised
as of December 2021 to inciude a "iow-defauit-risk obiigation measure" (LDROM). This liability measure is
consistent with the determination of the actuarial accrued liability shown on page 8 in terms of member data,
plan provisions, and assumptions/methods, including the use of the Entry Age Normal Cost Method, except
that the interest rate is tied to low-default-risk fixed income securities. The S&P Municipal Bond 20 Year Fligh
Grade Rate Index (daily rate closest to, but not later than, the measurement date) was selected to represent
a current market rate of low risk but longer-term investments that could be included in a low-risk asset
portfolio. The interest rate used in this valuation was 4.81%, resulting in an LDROM of $699,193,756 for Tiers
1 and 2 and $16,407,173 for Tier 3. The LDROM should not be considered the "correct" liability measurement;
FOSTER & FOSTER
51

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
it simply shows a possible outcome if the Board elected to hold a very low risk asset portfolio. The Board
actually invests the pension plan's contributions in a diversified portfolio of stocks and bonds and other
investments with the objective of maximizing investment returns at a reasonable level of risk. Consequently,
the difference between the plan's Actuarial Accrued Liability disclosed earlier in this section and the LDROM
can be thought of as representing the expected taxpayer savings from investing in the plan's diversified
portfolio compared to investing only in high quality bonds.
The actuarial valuation reports the funded status and develops contributions based on the expected return of
the plan's investment portfolio. If instead, the plan switched to investing exclusively in high quality bonds, the
LDROM illustrates that reported funded status would be lower (which also implies that the Actuarially
Determined Contributions would be higher), perhaps significantly. Unnecessarily high contribution
requirements in the near term may not be affordable and could imperil plan sustainability and benefit security.
FOSTER & foster
52

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Police Dept. (025)
Plan Maturity Measures and Other Risk Metrics - Tiers 1 & 2
6/30/2025
6/30/2024
6/30/2023
6/30/2022
6/30/2021
Support Ratio
Total Actives
180
198
208
233
264
Total Inactives
442
433
432
416
393
Actives/Inactives
40.7%
45.7%
48.1%
56.0%
67.2%
Asset Voutility Ratio
Market Value of Assets (MVA)
391,414,066
354,175,518
311,301,098
276,286,557
251,852,293
Total Annual Payroll
25,254,587
27,453,266
26,028,427
26,626,223
28,209,506
MVA/Total Annual Payroll
1,549.9%
1,290.1%
1,196.0%
1,037.6%
892.8%
Accrued Liability (AL) Ratio
Inactive Accrued Liability
372,124,274
350,425,721
340,573,593
313,844,644
284,113,139
Total Accrued Liability
510,433,977
494,346,687
468,660,944
440,579,491
418,072,646
Inactive AL/Total AL
72.9%
70.9%
72.7%
71.2%
68.0%
Funded Ratio
Actuarial Value of Assets (AVA)
376,495,535
350,527,124
317,039,433
283,808,091
230,247,748
Total Accrued Liability
510,433,977
494,346,687
468,660,944
440,579,491
418,072,646
AVA/Total Accrued Liability
73.8%
70.9%
67.6%
64.4%
55.1%
Net Cash flow Ratio
Net Cash Flow^
Market Value of Assets (MVA)
Net Cash Flow / MVA
(1,552,829)
391,414,066
(0.4%)
11,253,641
354,175,518
3.2%
12,705,637
311,301,098
4.1%
35,622,559
276,286,557
12.9%
11,475
251,852,293
0.0%
^ Determined as total contributions minus benefit payments. Administrative expenses are typically included but are considered part of the net interest rate
assumption for this plan.
FOSTER & FOSTER
53

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30,2025 - Scottsdale Police Dept. (025)
Plan Maturity Measures and Other Risk Metrics - Tier 3 ^
6/30/2025
6/30/2024
6/30/2023
6/30/2022
Support Ratio
Total Actives
142
122
101
78
Total Inactives
28
25
22
21
Actives/Inactives
507.1%
488.0%
459.1%
371.4%
Asset Volatility Ratio
Market Value of Assets (MVA)
11,027,484
7,721,818
5,008,447
3,116,801
Total Annual Payroll
15,335,871
12,530,583
9,532,156
6,606,234
MVA/Total Annual Payroll
71.9%
61.6%
52.5%
47.2%
Accrued Liability (AL) Ratio
Inactive Accrued Liability
414,044
329,426
299,386
184,757
Total Accrued Liability
9,325,666
6,392,848
4,158,880
2,532,270
Inactive AL/Total AL
4.4%
5.2%
7.2%
7.3%
Funded Ratio
Actuarial Value of Assets (AVA)
10,495,095
7,493,261
4,998,506
3,175,063
Total Accrued Liability
9,325,666
6,392,848
4,158,880
2,532,270
AVA/Total Accrued Liability
112.5%
117.2%
120.2%
125.4%
Net Cash flow Ratio
Net Cash Flow 1
2,207,699
1,996,905
1,534,778
1,132,376
Market Value of Assets (MVA)
11,027,484
7,721,818
5,008,447
3,116,801
Net Cash Flow/MVA
20.0%
25.9%
30.6%
36.3%
6/30/2021
68
15
453.3%
2,108,415
5,060,446
41.7%
55,263
1,690,825
3.3%
1,859,875
1,690,825
110.0%
837,059
2,108,415
39.7%
^ Determined as total contributions minus benefit payments. Administrative expenses are typically included but are considered part of the net interest rate
assumption for this plan.
^ Tier 3 results are shown for the Risk Sharing group, where applicable.
^ FOSTER & FOSTER
54

Arizona Public Safety Personnel
Retirement System
SCOTTSDALE FIRE DEPT. (223)
Actuarial Valuation
As of June 30, 2025
Contributions Applicable to the Plan/
Fiscal Year Ending June 30, 2027
FOSTER & FOSTER
ACTUARIES AND CONSULTANTS
ATTACHMENT 3

piFOSTER & FOSTER
ACTUARIES AND CONSULTANTS
November 2025
Board of Trustees
Arizona Public Safety Personnel Retirement System
Re:
Actuarial Valuation as of June 30, 2025 for Scottsdale Fire Dept. (223)
Dear Members of the Board,
This report details the annual actuarial valuation of the Arizona Public Safety Personnel Retirement System
(PSPRS) as of June 30, 2025. The valuation was performed to measure the plan's liability and funding levels
and to determine the actuarially appropriate funding requirements for the applicable plan year. This report
was prepared for use by the Board and those designated or approved by the Board. Use of the results for
other purposes may not be applicable and could produce significantly different results.
Data and Assumptions
In preparing this report, we have relied on personnel, plan design, and asset information supplied by PSPRS.
In our opinion, the assumptions used in the valuation, as adopted by the Board, represent reasonable
expectations of anticipated fund experience. Other sets of assumptions and methods could also be reasonable
and could produce materially different results. While we cannot verify the accuracy of all this information, the
supplied information was reviewed for consistency and reasonableness. As a result of this review, we have no
reason to doubt the substantial accuracy of the information and believe that it has produced appropriate
results. This information, along with any adjustments or modifications, is summarized in various sections of
this report.
Disclosures and Limitations
Future actuarial measurements may differ significantly from the current measurements presented in this
report due to factors such as the following: plan experience differing from that anticipated by the economic
or demographic assumptions; changes in economic or demographic assumptions; increases or decreases
expected as part of the natural operation of the methodology used for these measurements (such as the end
of an amortization period); and changes in plan provisions or applicable law. Due to the limited scope of this
report, we did not provide an analysis of these potential differences.
The computed contribution rates shown in the "Contribution Results" section should be considered minimum
contribution rates that comply with the Board's funding policy and Arizona Statutes. Users of this report
should be aware that contributions made at that rate do not guarantee benefit security. Given the importance
of benefit security to any retirement system, we suggest that contributions to the System in excess of those
presented in this report be considered.
The funding percentages and unfunded accrued liability as measured based on the actuarial value of assets
will differ from similar measures based on the market value of assets. These measures, as provided, are
13420 Parker Commons Blvd, Suite 104 Fort Myers, FL 33912 • (239) 433-5500 • www.foster-foster.com

appropriate for determining the adequacy of future contributions, but may not be appropriate for the purpose
of settling a portion or all of its liabilities.
This valuation assumes the continuing ability of the participating employers to make the contributions
necessary to fund this plan. A determination regarding \whether or not the participating employers are
actually able to do so is outside our scope of expertise. Consequently, we did not perform such an analysis.
In performing the analysis, we used third-party software to model (calculate) the underlying liabilities and
costs. These results are reviewed in the aggregate and for individual sample lives. The output from the
software is either used directly or input into internally developed models to generate the costs. All internally
developed models are reviewed as part of the process. As a result of this review, we believe that the models
have produced reasonable results. We do not believe there are any material inconsistencies among
assumptions or unreasonable output produced due to the aggregation of assumptions.
AauARiAL Certification
The valuation has been conducted in accordance with all applicable laws and regulations, as well as generally
accepted actuarial principles and practices, including the applicable Actuarial Standards of Practice as issued
by the Actuarial Standards Board; specifically No. 6 for Measuring Retiree Group Benefit Obligations/No. 4 for
Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, No. 23 for Data Quality,
No. 27 for Selection of Economic Assumptions for Measuring Pension Obligations, No. 35 for Selection of
Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations, No. 44, Selection and
Use of Asset Valuation Methods for Pension Valuations, and No. 51, Assessment and Disclosure of Risk
Associated with Measuring Pension Obligations.
In our opinion, the Minimum Required Contribution set forth in this report constitutes a reasonable actuarially
determined contribution under Actuarial Standard of Practice No. 4.
The undersigned are familiar with the immediate and long-term aspects of pension/OPEB valuations and meet
the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions
contained herein. All of the sections of this report are considered an integral part of the actuarial opinions.
To our knowledge, no associate of Foster & Foster, Inc. working on this report has any direct financial interest
or indirect material interest in the Arizona Public Safety Personnel Retirement System, nor does anyone at
Foster & Foster, Inc. act as a member of the PSPRS Board of Trustees. Thus, there is no relationship existing
that might affect our capacity to prepare and certify this actuarial report.
Respectfully submitted,
Foster & Foster, Inc.
Bradley Rlilei/richs, FSA, EA, MAAA
Paul M. Baugher, FSArEA, MAAA

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian Report as of June 30, 2025 - Scottsdale Fire Dept. (223)
Table of Contents
Summary..............................................................................................................................
Contribution Results.........................................................................................................
Development of Employer Contributions-Tiers 1 & 2 Members............................
Development of Employer Contributions -Tier 3 Defined Benefit (DB) Members.
Development of Contributions - Tier 3 Defined Contribution (DC) Members.......
Contribution Rate Summary.........................................................................................
Impact of Additional Contributions..............................................................................
Historical Summary of Rates........................................................................................
Liability Support.................................................................................................................
Liabilities and Funded Ratios by Benefit - Tiers 1 & 2................................................
Liabilities and Funded Ratios by Benefit - Tier 3.........................................................
Derivation of Experience (Gain)/Loss..........................................................................
Amortization of Unfunded Liabilities - Tiers 1 & 2.....................................................
Amortization of Unfunded Liabilities - Tier 3..............................................................
Asset Support......................................................................................................................
Member Statistics...............................................................................................................
Statistical Data - Active Members................................................................................
Statistical Data - Inactive Members.............................................................................
Active Age, Service and Pay Distributions-Tiers 1 & 2.............................................
Active Age, Service and Pay Distributions - Tier 3.....................................................
Age Distributions - Inactive Members........................................................................
Actuarial Assumptions and Methods...............................................................................
Plan Provisions..................................................................................................................
Actuarial Funding Policy..................................................................................................
Supplementary information..............................................................................................
Glossary..........................................................................................................................
Discussion of Risk..........................................................................................................
....5
....8
....8
....9
...10
,..11
..12
...13
..14
...14
,..15
,..16
,..17
..17
..18
..23
,..23
,..24
..25
...26
,..27
..28
..35
..41
..46
,..46
,..50

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian Repart as of June 30, 2025 - Scottsdale Fire Dept. (223)
Summary
The regular annual actuarial valuation of the Arizona Public Safety Personnel Retirement System for the
Scottsdale Fire Dept., performed as of June 30, 2025, has been completed and the results are presented in
this Report. The purpose of this valuation is to:
•
Compute the employers' recommended contribution rates for the fiscal year ending June 30, 2027.
This information is contained in the section entitled "Contribution Results".
•
Compute the liabilities associated with benefits likely to be paid on behalf of current retired and active
members and compare accumulated assets with the liabilities to assess the funded condition. This
information is contained in the section entitled "Liability Support."
Valuation Date
Applicable to Fiscal Year Ending
June 30, 2025
2027
June 30, 2024
2026
Employer Contribution Requirements (as a percentage of payroll)
Tiers 1 & 2 Members
Pension
Health
Total
29.98%
0.14%
30.12%
28.89%
0.21%
29.10%
Tier 3 Members ^
Pension
Health
Total
9.34%
0.11%
9.45%
9.09%
0.13%
9.22%
Funded Status
Tiers 1 8t 2 Members
Pension
Health
Total
81.0%
129.7%
81.5%
83.5%
128.3%
84.0%
Tier 3 Members
Pension
Health
Total
97.1%
167.6%
97.8%
102.6%
168.9%
103.4%
^ The Tier 3 rates shown are the calculated rates as of the valuation date and do not reflect any Legacy costs that the
employer must also contribute.
FOSTER & FOSTER
5

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian Report as of June 30, 2025 - Scottsdale Fire Dept. (223)
Changes From Prior Year
Changes in the results from the prior year's valuation can be illustrated in the following tables along with high-
level explanations for the entire System below:
Contribution Rate
Tiers 1 & 2
Tier 3 Members
Contribution Rate Last Valuation
Asset Experience
Payroll Base
Liability Experience
Additional Contribution
Assumption/Method Change
Compensation Limit Update
Other
Contribution Rate This Valuation
Pension
28.89%
(0.40%)
(2.44%)
3.16%
0.00%
0.03%
0.00%
0.74%
29.98%
Health
0.21%
(0.01%)
0.02%
(0.06%)
0.00%
0.00%
0.00%
(0.02%)
0.14%
Pension
9.09%
(0.15%)
0.00%
0.41%
0.00%
0.00%
0.67%
(0.68%)
9.34%
Health
0.13%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
(0.02%)
0.11%
Funded Status
Tiers 1 & 2
Tier 3 Members
Funded Status Last Valuation
Asset Experience
Liability Experience
Additional Contribution
Assumption/Method Change
Compensation Limit Update
Other
Funded Status This Valuation
Pension
83.5%
0.5%
(3.7%)
0.0%
0.0%
0.0%
0.7%
81.0%
Health
128.3%
1.0%
7.6%
0.0%
0.0%
0.0%
(7.2%)
129.7%
Pension
102.6%
1.8%
(5.0%)
0.0%
0.0%
0.0%
(2.3%)
97.1%
Health
168.9%
3.4%
(0.6%)
0.0%
0.0%
0.0%
(4.1%)
167.6%
Asset Experience - Asset gains and losses (relative to the assumed earnings rate) are smoothed over seven
years for Tiers 1 and 2 and over five years for Tier 3. The return on the market value of assets for the year
ending June 30, 2025 was 11.0% for Tiers 1 and 2 and 12.5% for Tier 3. On a smoothed, actuarial value of
assets basis, the average return was 7.9% for Tiers 1 and 2 and 9.2% for Tier 3. The returns exceeded the 2024
assumed earnings rate for Tiers 1 and 2 of 7.2% and the 2024 assumed earnings rate for Tier 3 of 7.0%.
FOSTER & FOSTER
6

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Fire Dept. (223)
Payroll Base - Under the current amortization policy for Tiers 1 and 2, the contribution rate is developed as a
level percentage of payroll. Payroll for this purpose includes members of this plan and the defined
contribution plan's members that would have been in this plan. To the extent that actual payroll is
lower/greater than last year's projected payroll, the contribution rate will increase/decrease as a result.
Liability Experience - Experience overall was unfavorable, with key sources of loss coming from inactive
mortality, actual COLAs, and other data changes.
Additional Contribution - Monies contributed in excess of the required contribution rate in order to pay down
the unfunded liability.
Assumption / Method Change - The Board continued the decrease in the payroll growth assumption from
1.50% to 0.75%.
Compensation Limit Update - The Tier 3 compensation limit was updated, as scheduled, with a sizable
increase over expectation.
Other - This is the combination of all other factors that could impact liabilities year-over-year, with the
primary sources being changes in benefits for continuing inactives. Tier 3 members were also impacted by
the increase in the compensation limit.
S iFOSTER & FOSTER
7

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Fire Dept. (223)
Contribution Results
Development OF Employer Contributions - Tiers 1& 2 Members
Valuation Date
Applicable to Fiscal Year Ending
Pension
Normal Cost
Total Normal Cost
Employee Cost
Employer (Net) Normal Cost
Amortization of Unfunded Liability
Total Employer Cost (Pension)
Health
Normal Cost
Amortization of Unfunded Liability
Total Employer Cost (Health)
Total Employer Cost (Pension + Health)
Alternate Contribution Rate (ACR) ^
Underlying Payroll (as of valuation date)
June 30, 2025
2027
June 30, 2024
2026
Rate
22.21%
(7.65%)
14.56%
15.42%
29.98%
0.27%
(0.13%)
0.14%
30.12%
15.42%
Dollar
$ 4,773,925
(1,644.328)
3,129,597
3.314.450
6,444,047
58,035
(27.943)
30,092
6,474,139
21,334,477
Rate
22.34%
(7.65%)
14.69%
14.20%
28.89%
0.31%
(0.10%)
0.21%
29.10%
14.20%
Dollar
$ 4,544,187
(1.556.089)
2,988,098
2,888.427
5,876,525
63,057
(20,341)
42,716
5,919,241
20,040,427
The results above are based on the current amortization schedule approved by the Board of Trustees for your
individual plan (see "Actuarial Assumptions and Methods").
^The Alternate Contribution Rate is the sum of the positive amortization rates for Tiers 1 & 2 Pension and Health (subject
to an 8% minimum) and is charged when retirees return to active status.
FOSTER & FOSTER
8

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Fire Dept. (223)
Development of Employer Contributions-Tier 3 Defined Benefit (DB) Members
Valuation Date
Applicable to Fiscal Year Ending
Pension
Totai Normal Cost
Amortization of Unfunded Liability
Total Pension Cost
June 30, 2025
2027
Rate
18.47%
0.20%
18,67%
Dollar
$ 2,419,421
26,198
2,445,619
June 30, 2024
2026
Rate
18.17%
0.00%
18.17%
Dollar
$ 1,475,106
0
1,475,106
Health
Total Normal Cost
Amortization of Unfunded Liability
Total Health Cost
0.22%
0.00%
0.22%
28,818
0
28,818
0.25%
0.00%
0.25%
20,296
0
20,296
Total
Calculated Tier 3 Required EE/ER Individual Cost
Funding Policy Tier 3 Required EE/ER Individual
Cost ^
ER Legacy Cost of Tiers 1 & 2 Amort of Unfunded
Liabilities ^
Funding Policy Tier 3 ER Defined Benefit Cost
Underlying Payroll (as of valuation date)
9.45%
9.41%
15.42%
24.83%
1,237,219
1,232,634
2,019,896
3,252,530
13,001,681
9.22%
9.49%
14.20%
23.69%
747,701
770,432
1,152,807
1,923,239
7,998,384
‘ The "Funding Policy" cost was adopted in 2023 and first reflected in the June 30, 2023 valuation. This cost is a 3-year
rolling average of the actual calculated costs. The total cost is split equally between employer and employee, in
compliance with state statutes. Note that pension and health monies are split differently for the two parties based on
IRS requirements. More information on this breakout is included in the "Historical Summary of Rates".
^ Pursuant to ARS § 38-843(B), the amortization of positive unfunded liabilities for Tiers 1 8i 2 shall be applied to all Tier
3 payroll on a level percent basis. However, while it is statutorily required to present the rates in this manner, these are
the minimums where alternate methods for paying down that unfunded liability is at the discretion of each employer.
Further, to understand the effects of reform in relation to Tier 3, compare the total rate of Tier 3 before application of
those legacy costs.
FOSTER & FOSTER
9

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Fire Dept (223)
Development of Contributions - Tier 3 Defined Contribution (DC) Members
Valuation Date
Applicable to Fiscal Year Ending
Tier 2 & 3 DB / Non-Social Security
Employee Cost
Employer Cost ^
June 30, 2025
2027
Rate Dollar
3.00%
3.00%
June 30,2024
2026
Rate
3.00%
3.00%
Dollar
Tier 3 DC Only
Employee Cost
Employee Health Subsidy Program Cost
Employee Disability Program Cost
Total Employee Cost
9.00%
0.18%
1.60%
10.78%
$ 8,316
166
1,478
9,960
9.00%
0.20%
1.54%
10.74%
$ 12,846
285
2.198
15,329
Employer Cost
9.00%
8,316
Employer Health Subsidy Program Cost
0.18%
166
Employer Disability Program Cost
1.60%
1,478
Total Employer Cost (before Legacy)
10.78%
9,960
ER Legacy Cost of Tiers 1 & 2 Amort of Unfunded
Liabilities
15.42%
14,249
Total Employer Cost (with Legacy)
26.20%
24,209
Underlying Payroll (as of valuation date)
91,716
9.00%
0.20%
1.54%
10.74%
14.20%
24.94%
12,846
285
2.198
15,329
20,268
35,597
140,621
1 Employer rate is 4% for Tier 2 members for a period of time depending on the individual's membership date.
^ Pursuant to ARS § 38-843(B), the amortization of positive unfunded liabilities for Tiers 1 & 2 shall be applied to all Tier
3 payroll on a level percent basis. However, while it is statutorily required to present the rates in this manner, these are
the minimums where alternate methods for paying down that unfunded liability is at the discretion of each employer.
Further, to understand the effects of reform in relation to Tier 3, compare the total rate of Tier 3 before application of
those legacy costs.
FOSTER & FOSTER
10

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Fire Dept. (223)
Contribution Rate Summary
Tierl
Tier 2
Tier 3
Membership Date On or After
Participates in Social Security
Available Retirement Plan ^
7/1/1968
N/A
DB Only
7.65%
Employee Contribution Rate
PSPRS DB Rate
PSPRS DC Rate
Employer Health Subsidy Program Cost
PSPDCRP Disability Program Rate
Total EE Contribution Rate
7.65%
1/1/2012
Yes No
DB Only Hybrid
7.65%
7.65%
3.00%
7.65% 10.65%
7/1/2017
Yes
No
N/A
DB Only
Hybrid
DC Only
9.41%
9.41%
3.00%
9.00%
0.18%
1.60%
9.41%
12.41%
10.78%
14.83%
15.29%
Employer Contribution Rate
PSPRS DB Normal Cost
PSPRS DB Tier 1 & 2 Legacy Cost ^
PSPRS DC Rate
Employer Health Subsidy Program Cost
PSPDCRP Disability Program Rate
Total ER Contribution Rate
30.12%
Employer Alternate Contribution Rate ^
15.42%
14.83% 14.83%
15.29% 15.29%
3.00%
30.12% 33.12%
15.42%
15.42%
9.41%
9.41%
15.42%
15.42% 15.42%
3.00%
9.00%
0.18%
1.60%
24.83%
27.83% 26.20%
15.42%
15.42% 15.42%
Exhibit summarizes employee and employer contributions based on Statute and the results of June 30, 2025
actuarial valuation. Pension and health components are combined, where applicable.
^ Employers that pay into Social Security on behalf of their members do not participate in the Hybrid Plan.
^ Per statute (ARS § 38-843(B)), any positive unfunded liability for Tiers 1 and 2 is to be applied to all Tier 3 (DB and DC)
payrolls
^The Alternate Contribution Rate is the sum of the positive amortization rates for Tiers 1 & 2 Pension and Health (subject
to an 8% minimum) and is charged when retirees return to active status.
FOSTER & FOSTER
11

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Fire Dept. (223)
Impact of Additional Contributions
Impact On
Funded Status - June 30, 2025
FYE 2027 Contribution Rate
$0
$1,000
$2,000
$3,000
81.0% 81.4% 81.8% 82.2%
29.98% 29.68% 29.38% 29.08%
Additional Contribution (000s)
$4,000
$5,000
$6,000
$7,000
$8,000
82.7%
83.1%
83.5%
83.9%
84.3%
28.78%
28.48%
28.19%
27.89%
27.59%
$9,000
$10,000
84.7%
85.1%
27.29%
26.99%
Table shows the hypothetical change in the funded status and contribution rate from the June 30, 2025 actuarial valuation results for Tiers 1 & 2 if
an additional contribution of the amount shown had been made to the Fund on June 30, 2025. This illustration can help estimate the impact of
contributing additional monies to the fund in the future.
FOSTER & FOSTER
12

Arizona Public Safety Personnel Retirement System
Actuarial Valuation Report as of June 30, 2025 - Scottsdale Fire Dept. (223)
Historical Summary of Rates
Pension
Health
Tiers 1 & 2
(Employer)
Tiers ^
(Employer)
Tiers
(Employee)
Valuation
Date June 30
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
Fiscal Year
Ending June 30
2023
2024
2025
2026
2027
2023
2024
2025
2026
2027
2023
2024
2025
2026
2027
Normal
Cost
13.57%
14.43%
15.13%
14.69%
14.56%
10.33%
10.25%
9.67%
9.22%
9.13%
10.33%
10.25%
9.67%
9.49%
9.38%
Unfunded
Amortization
9.60%
9.47%
12.61%
14.20%
15.42%
0.00%
0.00%
0.00%
0.00%
0.03%
0.00%
0.00%
0.00%
0.00%
0.03%
Total
23.17%
23.90%
27.74%
28.89%
29.98%
10.33%
10.25%
9.67%
9.22%
9.16%
10.33%
10.25%
9.67%
9.49%
9.41%
Normal
Cost
0.34%
0.34%
0.33%
0.31%
0.27%
0.20%
0.20%
0.14%
0.27%
0.25%
0.20%
0.20%
0.14%
0.00%
0.00%
Unfunded
Amortization
(0.10%)
0.00%
0.00%
(0.10%)
(0.13%)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Total
0.24%
0.34%
0.33%
0.21%
0.14%
0.20%
0.20%
0.14%
0.27%
0.25%
0.20%
0.20%
0.14%
0.00%
0.00%
^ All Tier 3 rates shown (employer and employee) are Board approved Funding Policy rates. Starting in 2023, these rates are a 3-year rolling average of calculated
EE/ER rates. Does not reflect Legacy costs that the employer must also contribute.
FOSTER & FOSTER
13

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Liability Support
Liabilities and Funded Ratios by Benefit - Tiers 1 & 2
Pension
Actuarial Present Value of Benefits (PVB)
Retirees and Beneficiaries
DROP Members
Vested Members
Active Members
Total Actuarial Present Value of Benefits
Actuarial Accrued Liability (AAL)
All Inactive Members
Active Members
Total Actuarial Accrued Liability
Actuarial Value of Assets (AVA)
Unfunded Actuarial Accrued Liability
PVB Funded Ratio (AVA / PVB)
AAL Funded Ratio (AVA / AAL)
Health
Actuarial Present Value of Benefits (PVB)
Retirees and Beneficiaries
DROP Members
Active Members
Total Present Value of Benefits
Actuarial Accrued Liability (AAL)
All Inactive Members
Active Members
Total Actuarial Accrued Liability
Actuarial Value of Assets (AVA)
Unfunded Actuarial Accrued Liability
PVB Funded Ratio (AVA / PVB)
AAL Funded Ratio (AVA / AAL)
June 30,2025
$ 77,700,458
46,405,975
4,012,353
149.488.447
277,607,233
128,118,786
114.623.459
242,742,245
196,635,706
46,106,539
70.8%
81.0%
$ 508,080
592,174
1.700.381
2,800,635
1,100,254
1.321.755
2,422,009
3,142,153
(720,144)
112.2%
129.7%
June 30, 2024
$ 67,417,913
41,894,943
3,655,809
137.316.825
250,285,490
112,968,665
102.409.420
215,378,085
179,933,092
35,444,993
71.9%
83.5%
$ 417,362
537,337
1.726.592
2,681,291
954,699
1.304.208
2,258,907
2,897,925
(639,018)
108.1%
128.3%
Health liabilities were increased by $7,106 underthe lateral transfer methodology. Pension liabilities were not
impacted.
FOSTER & FOSTER
14

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Liabilities and Funded Ratios by Benefit - Tier 3
June 30,2025 June 30, 2024
Pension
Actuarial Present Value of Benefits (PVB)
Retirees and Beneficiaries
Vested Members
Active Members
Total Actuarial Present Value of Benefits
Actuarial Accrued Liability (AAL)
All Inactive Members
Active Members
Total Actuarial Accrued Liability
Actuarial Value of Assets (AVA)
Unfunded Actuarial Accrued Liability
PVB Funded Ratio (AVA / PVB)
AAL Funded Ratio (AVA / AAL)
$ 617,586
348,461
45,780,499
46,746,546
966,047
7,199,565
8,165,612
7,925,171
240,441
17,0%
97.1%
$ 612,234
242,434
26.491.053
27,345,721
854,668
4,384,782
5,239,450
5,374,734
(135,284)
19.7%
102.6%
Health
Actuarial Present Value of Benefits (PVB)
Retirees and Beneficiaries
Active Members
Total Present Value of Benefits
Actuarial Accrued Liability (AAL)
All Inactive Members
Active Members
Total Actuarial Accrued Liability
Actuarial Value of Assets (AVA)
Unfunded Actuarial Accrued Liability
PVB Funded Ratio (AVA / PVB)
AAL Funded Ratio (AVA / AAL)
$ 0
522,111
522,111
0
90.988
90.988
152,501
(61,513)
29.2%
167.6%
$ 0
364,796
364,796
0
66,064
66,064
111,566
(45,502)
30.6%
168.9%
The liabilities shown on this page are the liabilities for Scottsdale Fire Dept. Tier 3 members.
FOSTER & FOSTER
15

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Derivation of Experience (Gain)/Loss
(1)
Unfunded Actuarial Accrued Liability as of June 30,2024
(2)
Normal Cost Developed in Last Valuation
(3)
Actual Contributions
(4)
Expected Interest On (1), (2), and (3)
Expected Unfunded Actuarial Accrued Liability as of June
30, 2025: (l)+(2)-(3)+(4)
Changes to UAAL Due to Assumptions, Methods and
Benefits
(7)
Change to UAAL Due to Actuarial (Gain)/Loss
(8)
Unfunded Actuarial Accrued Liability as of June 30, 2025
(5)
(6)
FOSTER & FOSTER
Tiers 1 & 2
Pension
35,444,993
2,988,098
7,542,380
2,500,376
33,391,087
0
12.715.452
46,106,539
Health
(639,018)
63,057
68,946
(43,908)
(688,815)
0
(31.329)
(720,144)
Tier 3
Pension
(135,284)
737,959
983,489
8,602
(372,212)
0
612.653
240,441
Health
(45,502)
10,554
28,956
(3,541)
(67,445)
0
5.932
(61,513)
16

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Amortization of Unfunded Liabilities - Tiers 1 & 2
Date Established Outstanding Balance Years Remaining
Pension
Health
6/30/2019
6/30/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Total
6/30/2019
6/30/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Total
2J94,119
14,246,610
4,604,912
7,049,742
4,972,928
12.438.228
46,106,539
0
0
0
0
0
(341.518)
(341.518)
11
11
12
13
14
15
10
10
10
10
10
10
Amortization Rate
1.01%
5.20%
1.59%
2.31%
1.56%
3.75%
15.42%
0.00%
0.00%
0.00%
0.00%
0.00%
(0.13%)
(0.13%)
Amortization of Unfunded Liabilities - Tier 3
Date Established Outstanding Balance Years Remaining
6/30/2018
Pension
Health
6/30/2019
6/30/2020
6/30/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Total
6/30/2018
6/30/2019
6/30/2020
6/30/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Total
446
836
35,682
(53,237)
(89,603)
(113,766)
97,630
362.453
240,441
40
(951)
(1,277)
(2,064)
(6,848)
(8,320)
(22,188)
(19.905)
(61,513)
3
4
5
6
7
8
9
10
3
4
5
6
7
8
9
10
Amortization Rate ^
0.00%
0.00%
0.06%
(0.08%)
(0.12%)
(0.14%)
0.11%
0.37%
0.20%
0.00%
0.00%
0.00%
0.00%
(0.01%)
(0.01%)
(0.02%)
(0.02%)
0.00%
^ By Statute, negative total amortization rates are not subtracted in Tier 3 rate calculations.
FOSTER & FOSTER
17

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Asset Support
Statement of Changes in Fiduciary Net Position for Year Ended June 30,2025
Tiers 1 & 2
Tier 3
Pension
Health
Additions
Contributions
Member Contributions
Employer Contributions
Health Insurance Contributions
Total Contributions
Investment Income
Net Increase in Fair Value
Interest and Dividends
Other Income
Less Investment Expenses
Net Investment Income
Non-investment Income
Transfers In
Total Additions
$ 108,640,873
$ 0
1,069,823,308
0
________0
4.098.668
1,178,464,181
4,098,668
1,390,120,909
259,062,270
150,210,467
(35.364.426)
1,764,029,220
0
34,877,805
6,499,811
3,767,860
(728.394)
44,417,082
0
288,360
0
2,942,781,761
48,515,750
Pension
$ 61,005,633
59,252,766
0
120,258,399
45,105,036
8,405,753
4,873,856
(1.147.464)
57,237,181
0
206,733
177,702,313
Health
$ 0
0
1.553.978
1.553.978
1,105,501
206,021
119,427
(23.087)
1,407,862
0
0
2,961,840
Deductions
Distributions to Members
Benefit Payments
Health Insurance Subsidy
Refund of Contributions
Total Distributions
Administrative Expenses
Transfers Out
Other
Total Deductions
1,218,594,305
0
12.178.168
1,230,772,473
7,838,369
67,338
0
18,660,709
0
18,660,709
201,658
0
0 0
1,238,678,180
18,862,367
852,434
0
2.803.612
3,656,046
254,475
0
0
3,910,521
0
6,480
0
6,480
6,392
0
0
12,872
Net Increase / (Decrease)
1,704,103,581
29,653,383
173,791,792
2,948,968
Net Position Held in Trust
Prior Valuation
Beginning of the Year Adjustment
End of the Year
15,933,751,686
411,840,936
398,698,171
11,044,818
0
0
0
0
17,637,855,267
441,494,319
572,489,963
13,993,786
FOSTER & FOSTER
18

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Development of Pension Actuarial Value of Assets - Tiers 1 & 2
A. Investment Income
Al. Actual Investment Income
A2. Expected Amount for Immediate Recognition
A3. Amount Subject to Amortization
$ 1,756,190,851
1,145,387,569
610,803,282
B. Amortization Schedule
2025 Experience (A3 / 7)
2024 Experience
2023 Experience
2022 Experience
2021 Experience
2020 Experience
2019 Experience
Totai Amortization
2025
87,257,612
62,439,795
10,197,720
(204,451,249)
238,978,744
(68,882,158)
(22,859,275)
Year Ended June 30
2026
2027
2028
87,257,612
87,257,612
87,257,612
62,439,795
62,439,795
62,439,795
10,197,720
10,197,720
10,197,720
(204,451,249)
(204,451,249)
(204,451,249)
238,978,744
238,978,745
(68,882,160)
2029
87,257,612
62,439,795
10,197,717
2030
87,257,612
62,439,792
2031
87,257,610
102,681,189
125,540,462
C. Actuarial Value of Assets
Cl. Actuarial Value of Assets, June 30, 2024
C2. Non-investment Net Cash Fiovy
C3. Preliminary Actuarial Value of Assets, June 30, 2025; (A2 + B + Cl + C2)
C4. Market Value of Assets, June 30, 2025
194,422,623
(44,556,122)
159,895,124
149,697,404
87,257,610
Employer
Total
15,769,616,678
(52,087,270)
16,965,598,166
17,637,855,267
C5. Final Actuarial Value of Assets, June 30, 2025 (C3 Within 20% Corridor of C4)
16,965,598,166
204,427,341
196,635,706
D. Rates of Return
Dl. Market Value Rate of Return
D2. Actuarial Value Rate of Return
11.0%
7.9%
FOSTER & FOSTER
19

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Development of Health Actuarial Value of Assets - Tiers 1 & 2
A. Investment Income
Al. Actual Investment Income
$ 44,215,424
A2. Expected Amount for Immediate Recognition
29,137,425
A3. Amount Subject to Amortization
15,077,999
Year Ended June 30
B. Amortization Schedule 2025
2026
2025 Experience (A3 / 7)
2,154,000
2,154,000
2024 Experience
1,556,610
1,556,610
2023 Experience
193,035
193,035
2022 Experience
(6,416,469)
(6,416,469)
2021 Experience
9,257,478
9,257,478
2020 Experience
(2,898,713)
(2,898,716)
2019 Experience
(1,075,572)
Total Amortization
2,770,369
3,845,938
2027
2,154,000
1,556,610
193,035
(6,416,469)
9,257,481
2028
2,154,000
1,556,610
193,035
(6,416,471)
2029
2,154,000
1,556,610
193,036
2030
2,154,000
1,556,608
2031
2,153,999
6,744,657
C. Actuarial Value of Assets
Cl. Actuarial Value of Assets, June 30, 2024
C2. Non-investment Net Cash Flow
C3. Preliminary Actuarial Value of Assets, June 30, 2025: (A2 + B -p Cl + C2)
C4. Market Value of Assets, June 30, 2025
C5. Final Actuarial Value of Assets, June 30, 2025 (C3 Within 20% Corridor of C4)
(2,512,826)
Total
406,302,544
(14,562,041)
423,648,297
441,494,319
423,648,297
3,903,646
3,710,608
Employer
2,153,999
3,274,515
3,142,153
D. Rates of Return
Dl. Market Value Rate of Return
D2. Actuarial Value Rate of Return
10.9%
8.0%
FOSTER & FOSTER
20

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Development of Pension Actuarial Value of Assets - Tiers 3
A. Investment Income
Al. Actual Investment Income
$ 56,982,706
A2. Expected Amount for Immediate Recognition
31,928,044
A3. Amount Subject to Amortization
25,054,662
B. Amortization Schedule 2025
2026
2025 Experience (A3 / 5)
5,010,932
5,010,932
2024 Experience
3,027,823
3,027,823
2023 Experience
885,521
885,521
2022 Experience
(3,259,379)
(3,259,381)
2021 Experience
3,551,938
Total Amortization
9,216,835
5,664,895
Year Ended June 30
2027
5,010,932
3,027,823
885,520
2028
5,010,932
3,027,823
2029
5,010,934
8,924,275
8,038,755
5,010,934
C. Actuarial Value of Assets
Cl. Actuarial Value of Assets, June 30, 2024
C2. Non-investment Net Cash Flow
C3. Preliminary Actuarial Value of Assets, June 30, 2025: (A2 + B + Cl + C2)
C4. Market Value of Assets, June 30, 2025
D. Rates of Return
Dl. Market Value Rate of Return
D2. Actuarial Value Rate of Return
12.5%
9.2%
FOSTER & FOSTER
Total
386,897,139
116,809,086
544,851,104
572,489,963
C5. Final Actuarial Value of Assets, June 30, 2025 (C3 Within 20% Corridor of C4)
544,851,104
Employer
8,327,194
7,925,171
21

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Development of Health Actuarial Value of Assets - Tiers 3
A. Investment Income
Al. Actual Investment Income
$ 1,401,470
A2. Expected Amountfor Immediate Recognition
826,384
A3. Amount Subject to Amortization
575,086
B. Amortization Schedule 2025
2026
2025 Experience (A3 / 5)
115,017
115,017
2024 Experience
84,292
84,292
2023 Experience
23,872
23,872
2022 Experience
(101,792)
(101,790)
2021 Experience
128,961
Total Amortization
250,350
121,391
Year Ended June 30
2027
2028
115,017
115,017
84,292
84,290
23,870
2029
115,018
223,179
199,307
115,018
C. Actuarial Value of Assets
Total
Cl. Actuarial Value of Assets, June 30, 2024
10,710,659
C2. Non-investment Net Cash Flow
1,547,498
C3. Preliminary Actuarial Value of Assets, June 30, 2025: (A2 + B + Cl + C2)
13,334,891
C4. Market Value of Assets, June 30, 2025
13,993,786
C5. Final Actuarial Value of Assets, June 30, 2025 (C3 Within 20% Corridor of C4)
13,334,891
D. Rates of Return
Dl. Market Value Rate of Return
D2. Actuarial Value Rate of Return
11.9%
9.4%
FOSTER & FOSTER
Employer
160,036
152,501
22

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Member Statistics
Statistical Data-Active Members
Actives
Number
Average Current Age
Average Age at Employment
Average Past Service
Average Annual Salary
Actives (transferred)
Number
Average Current Age
Average Age at Employment
Average Past Service
Average Annual Salary
Total Number (Active)
June 30, 2025
June 30, 2024
Tiers 1 & 2
133
48.6
30.4
18.2
$148,249
6
36.7
25.3
11.4
$100,833
139
Tier 3
138
31.0
28.4
2.6
$84,014
6
34.5
31.1
3.5
$79,165
144
Tiers 1 & 2
142
47.8
30.5
17.3
$132,208
5
36.6
25.8
10.8
$83,681
147
Tier 3
95
31.1
28.3
2.8
$75,688
4
37.4
32.8
4.6
$75,363
99
FOSTER & FOSTER
23

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Statistical Data - Inactive Members
Retirees
Number
Average Current Age
Average Annual Benefit
Drop Retirees
Number
Average Current Age
Average Annual Benefit
Beneficiaries
Number
Average Current Age
Average Annual Benefit
June 30, 2025
Tiers 1 & 2
42
60.2
$63,205
37
58.5
$71,479
5
58.2
$51,886
Tier 3
0
N/A
N/A
N/A
N/A
N/A
0
N/A
N/A
June 30, 2024
Tiers 18i 2
41
59.4
$62,076
36
58.4
$70,539
5
57.2
$38,362
Tier 3
0
N/A
N/A
N/A
N/A
N/A
0
N/A
N/A
Disability Retirees
Number
Average Current Age
Average Annual Benefit
43
57.3
$54,350
1
44.0
$36,520
36
56.9
1
43.0
$50,238
$36,520
iNAaivE / Vested
Number
Average Current Age
Average Accumulated
Contributions
Total Number (Inactive)
Former Members (Transferred)
4
43.5
131
12
13
32.6
$44,176
$10,238
14
13
6
43.1
124
11
10
33.0
$53,800
$12,406
11
10
FOSTER & FOSTER
24

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Active Age, Service and Pay Distributions-Tiers 1 & 2
Age
<20
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Total
0-4
0
0
0
0
0
0
0
0
0
0
0
0
Past Service
5-9
0
0
0
9
2
4
1
0
0
0
0
16
10-14
0
0
0
3
8
12
0
1
0
0
0
24
15-19
0
0
0
0
0
12
6
4
1
1
0
24
20-24
0
0
0
0
0
2
15
24
24
3
0
68
25-29
0
0
0
0
0
0
1
4
1
1
0
7
30+
0
0
0
0
0
0
0
0
0
0
0
0
Total Count
0
0
0
12
10
30
23
33
26
5
0
139
Total Pay
0
0
0
1,453,497
1,494,233
4,400,180
3,614,161
4,905,960
3,797,668
656,408
0
20,322,107
Average Pay
0
0
0
121,125
149,423
146,673
157,137
148,665
146,064
131,282
0
146,202
FOSTER & FOSTER
25

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Active Age, Service and Pay Distributions - Tier 3
Age
<20
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65+
Total
0-4
0
18
47
34
16
6
2
0
0
0
0
123
5-9
0
0
3
10
5
2
1
0
0
0
0
21
Past Service
10-14
0
0
0
0
0
0
0
0
0
0
0
0
15-19
0
0
0
0
0
0
0
0
0
0
0
0
20-24
0
0
0
0
0
0
0
0
0
0
0
0
25-29
0
0
0
0
0
0
0
0
0
0
0
0
30+
0
0
0
0
0
0
0
0
0
0
0
0
Total Count
0
18
50
44
21
8
3
0
0
0
0
144
Total Pay
0
1,262,355
3,968,388
3,900,920
2,010,116
686,617
240,459
0
0
0
0
12,068,855
Average Pay
0
70,131
79,368
88,657
95,720
85,827
80,153
0
0
0
0
83,811
FOSTER & FOSTER
26

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Age Distributions - Inactive Members
Retirees, Disableds and
Beneficiaries
Age
<40
40-45
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90-94
95-99
100+
Total
Average Annual
Count
Pensions
2
76,530
2
31,653
11
56,018
14
57,849
20
58,596
22
56,362
14
67,850
5
49,171
0
0
1
37,517
0
0
0
0
0
0
0
0
91
58,106
FOSTER & FOSTER
27

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as of June 30, 2025 - Scottsdale Fire Dept. (223)
Actuarial Assumptions and Methods
Interest Rate
This is the assumed earnings rate on System assets, compounded
annually, net of investment and administrative expenses.
•
Tiers 1 & 2: 7.20% per year.
•
Tier 3: 7.00% per year.
Mortality Rate
Active Lives:
PubS-2010 Employee mortality, adjusted by a factor of 1.03 for male
members and 1.08 for female members, with generational
improvements using 85% of the most recent projection scale
(currently Scale MP-2021). 100% of active deaths are assumed to be
in the line of duty.
Inactive Lives:
PubS-2010 Healthy Retiree mortality, adjusted by a factor of 1.03
for male retirees and 1.11 for female retirees, with generational
improvements using 85% of the most recent projection scale
(currently Scale MP-2021).
Beneficiaries:
PubS-2010 Survivor mortality, adjusted by a factor of 0.98 for male
beneficiaries and adjusted by a factor of 1.06 for female
beneficiaries, with generational improvements using 85% of the
most recent projection scale (currently Scale MP-2021).
Disabled Lives:
PubS-2010 Disabled mortality, adjusted by a factor of 1.08 for male
disabled members and 1.01 for female disabled members, with
generational improvements using 85% of the most recent projection
scale (currently Scale MP-2021).
The mortality assumptions sufficiently accommodate anticipated
future mortality improvements.
Retirement / DROP Rates
These rates are used to project future decrements from the active
population due to retirement. The rates below are based on a 2022
experience study using actual plan experience.
Tier 1 - reaching age 62 before attaining 20 years of service:
Age-related rates based on age at retirement:
FOSTER & FOSTER
28

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Police - 40% assumed at age 62 and 63,35% assumed at age 64,
25% assumed at ages 65 and 66, 50% assumed at ages 67 - 69, and
100% assumed at age 70.
Fire - 25% assumed at age 62 and 63, 35% assumed at age 64, 25%
assumed at ages 65 and 66, 50% assumed at ages 67 - 69, and 100%
assumed at age 70.
Tier 1 - reaching age 62 after attaining 20 years of service:
Service-related rates based on service at retirement. See complete
tables at the end of this section.
65% are assumed to enter the DROP program while the remaining
35% are assumed to retire and commence benefits immediately.
DROP periods are assumed to be 5 years in length for future DROP
elections.
Tiers 2 & 3:
Age-related rates based on age at retirement. 50% assumed at age
53, 30% assumed at ages 54 - 59, 60% assumed at ages 60 - 63, and
100% assumed at age 64.
Disability Rate
These rates are used to project future decrements from the active
population due to disability. Complete table of rates based on age
at disability are provided at the end of this section. These rates are
based on a 2022 experience study using actual plan experience.
90% of disablements are assumed to be duty-related.
Termination Rate
These rates are used to project future decrements from the active
population due to termination. Complete table of rates based on
service at termination are provided at the end of this section. The
rates apply to members prior to retirement eligibility and are based
on a 2022 experience study using actual plan experience.
Inflation
2.50%.
Tier 3 Compensation Limit
$140,952 for calendar 2024. Assumed increases of 2.00% per year
thereafter.
Cost-of-Living Adjustment
1.85%.
FOSTER & FOSTER
29

Arizona Public Safety Personnel Retirement System
Actuarial Valuation os of June 30, 2025 - Scottsdale Fire Dept. (223)
Salary Increases
See table at the end of this section. This is an annual increase for
individual member's salary. These rates are based on a 2022
experience study using actual plan experience.
Marital Status
For active members, 85% of males and 60% of females are assumed to be
married. Actual marital status is used, where applicable, for inactive
members.
Spouse's Age
Males are assumed to be three years older than females.
Benefit Commencement
Deferred members are assumed to commence benefits as follows:
•
Tier 1: immediate refund of contributions
•
Tiers 2 & 3 (less than 15 years service): immediate refund of
contributions
•
Tier 2 (15+ years service): life annuity payable at age 52.5
•
Tier 3 (15+ years service): life annuity payable at age 55
Health Care Utilization
For active members, 70% of retirees are expected to utilize retiree
health care. Actual utilization is used for inactive members.
Funding Method
Entry Age Normal Cost Method.
Lateral Transfers
When active members transfer between employers, the new
employer's liability starts from their new date of hire with no past
service liability (i.e., all liability is accrued through normal cost). Per
PSPRS administrative decision, once the new employer's liability is
fully funded, the liability will reflect all past service liability.
Actuarial Asset Method
Each year the assumed investment income is recognized in full while
the difference between actual and assumed investment income are
smoothed over a fixed period (7 years for Tiers 1 & 2; 5 years for
Tier 3). Actuarial Assets shall not be less than 80% nor greater than
120% of the Market Value of Assets. Note that during periods when
investment performance exceeds (falls short) of the assumed rate,
the actuarial value of assets will tend to be less (greater) than the
market value of assets.
FOSTER & FOSTER
30

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Amortization Method
See Funding Policy for complete details. In short:
Tiers 1 & 2:
•
Any positive UAAL (assets less than funding policy targets) is
amortized using a layered approach according to a Level
Dollar method over a closed period of 15 years (phased into
from current period).
•
Any negative UAAL (assets greater than funding policy
targets) is amortized according to a Level Dollar method
over an open period of 10 years.
Tier 3:
Any positive UAAL (assets less than liabilities) is amortized
according to a Level Dollar method over a closed period of
10 years.
No amortization is made of any negative UAAL (assets
greater than liabilities).
Payroll Growth
0.75% per year. This is the annual increase expected on total
employer payroll.
Changes Since the Prior Valuation
The payroll growth assumption was lowered from 1.50% to 0.75%.
There were no method changes since the prior valuation.
FOSTER & FOSTER
31

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Salary Increase Rates
Age
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53+
Maricopa
Police
15.00%
14.00%
13.00%
12.00%
11.00%
10.00%
9.00%
8.00%
7.50%
7.00%
6.50%
6.00%
5.50%
5.10%
4.90%
4.70%
4.50%
4.30%
4.10%
4.00%
3.90%
3.80%
3.70%
3.60%
3.50%
3.50%
3.50%
3.50%
3.50%
3.50%
3.25%
3.25%
3.25%
3.25%
Pima
Police
12.00%
6.00%
6.00%
6.00%
6.00%
6.00%
5.50%
5.50%
5.50%
5.50%
5.25%
5.25%
5.00%
5.00%
5.00%
4.50%
4.50%
4.50%
4.00%
4.00%
4.00%
3.80%
3.60%
3.40%
3.20%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
2.75%
2.75%
Other
Police
14.00%
12.00%
10.00%
9.00%
8.00%
7.00%
6.50%
6.25%
6.00%
5.80%
5.60%
5.40%
5.20%
5.00%
4.90%
4.80%
4.70%
4.60%
4.50%
4.40%
4.30%
4.20%
4.10%
4.00%
3.90%
3.80%
3.70%
3.60%
3.50%
3.50%
3.50%
3.50%
3.50%
3.50%
Maricopa
Fire
15.00%
14.00%
13.00%
12.00%
11.00%
10.00%
9.50%
9.00%
8.50%
8.00%
8.00%
7.50%
7.00%
6.50%
6.50%
6.00%
5.50%
5.25%
5.00%
4.75%
4.75%
4.50%
4.50%
4.50%
4.50%
4.25%
4.25%
4.25%
4.00%
4.00%
3.75%
3.75%
3.75%
3.75%
Pima
Fire
12.00%
11.00%
10.00%
9.50%
9.00%
8.50%
7.50%
6.50%
5.75%
5.75%
5.50%
5.50%
5.00%
5.00%
5.00%
5.00%
5.00%
4.50%
4.50%
4.50%
4.50%
4.50%
4.00%
4.00%
4.00%
4.00%
3.75%
3.75%
3.75%
3.50%
3.50%
3.50%
3.50%
3.25%
Other
Fire
13.00%
12.00%
11.00%
10.00%
9.00%
8.00%
7.50%
7.50%
7.00%
6.50%
6.50%
6.00%
5.50%
5.50%
5.50%
5.50%
5.50%
5.00%
5.00%
5.00%
5.00%
4.50%
4.50%
4.50%
4.00%
4.00%
4.00%
3.75%
3.75%
3.75%
3.75%
3.75%
3.75%
3.75%
FOSTER & FOSTER
32

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Tier 1 Retirement Rates- reaching age 62 after attaining 20 years of service
Maricopa Pima Other Maricopa
Service
Police
Police
Police
Fire
20
28%
28%
35%
14%
21
25%
25%
35%
17%
22
15%
16%
22%
7%
23
12%
12%
12%
7%
24
8%
9%
12%
7%
25
30%
22%
25%
17%
26
42%
42%
40%
30%
27
32%
30%
28%
23%
28
32%
30%
28%
30%
29
32%
20%
28%
30%
30
35%
25%
35%
30%
31
35%
33%
30%
40%
32
60%
50%
70%
55%
33
60%
50%
70%
55%
34+
100%
100%
100%
100%
Pima
Other
Fire
Fire
20%
20%
20%
25%
13%
15%
7%
10%
7%
10%
22%
30%
26%
30%
30%
30%
30%
30%
30%
30%
30%
35%
30%
35%
30%
35%
60%
60%
100%
100%
Termination Rates
Service
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20+
Maricopa
Police
13.0%
8.0%
6.0%
4.5%
3.6%
3.3%
3.3%
3.3%
2.4%
2.4%
2.4%
1.8%
1.8%
1.3%
1.3%
0.8%
0.8%
0.8%
0.8%
0.8%
0.5%
Pima
Police
14.0%
9.0%
7.5%
7.0%
6.5%
5.0%
5.0%
4.0%
4.0%
4.0%
4.0%
3.0%
3.0%
2.0%
2.0%
1.5%
1.5%
1.0%
1.0%
1.0%
1.0%
Other
Police
13.5%
11.5%
10.5%
9.5%
9.0%
8.0%
7.0%
6.5%
6.5%
6.0%
5.0%
4.0%
4.0%
3.5%
3.0%
2.5%
2.0%
2.0%
1.8%
1.8%
1.8%
Maricopa
Fire
4.5%
3.5%
2.5%
2.0%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.0%
1.0%
1.0%
1.0%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.4%
Pima
Other
Fire
Fire
10.0%
10.5%
6.0%
8.5%
4.5%
8.0%
4.0%
8.0%
4.0%
7.0%
4.0%
5.0%
4.0%
5.0%
3.0%
4.0%
3.0%
4.0%
3.0%
3.5%
2.0%
3.0%
2.0%
2.5%
1.5%
2.0%
1.0%
1.5%
1.0%
1.4%
1.0%
1.4%
0.5%
1.4%
0.5%
1.4%
0.5%
1.4%
0.5%
0.5%
0.5%
0.5%
FOSTER & FOSTER
33

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept (223)
Disability Rates
Age
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56+
Maricopa
Police
0.050%
0.050%
0.050%
0.050%
0.050%
0.050%
0.100%
0.100%
0.100%
0.100%
0.100%
0.230%
0.230%
0.230%
0.230%
0.230%
0.450%
0.450%
0.450%
0.450%
0.450%
0.520%
0.520%
0.520%
0.520%
0.520%
0.650%
0.650%
0.650%
0.650%
0.650%
0.800%
0.800%
0.800%
0.800%
0.800%
1.000%
Pima
Police
0.050%
0.050%
0.050%
0.050%
0.050%
0.050%
0.100%
0.100%
0.100%
0.100%
0.100%
0.180%
0.180%
0.180%
0.180%
0.180%
0.350%
0.350%
0.350%
0.350%
0.350%
0.650%
0.650%
0.650%
0.650%
0.650%
0.750%
0.750%
0.750%
0.750%
0.750%
0.800%
0.800%
0.800%
0.800%
0.800%
0.850%
Other
Police
0.120%
0.120%
0.120%
0.120%
0.120%
0.120%
0.160%
0.160%
0.160%
0.160%
0.160%
0.240%
0.240%
0.240%
0.240%
0.240%
0.320%
0.320%
0.320%
0.320%
0.320%
0.550%
0.550%
0.550%
0.550%
0.550%
0.750%
0.750%
0.750%
0.750%
0.750%
0.800%
0.800%
0.800%
0.800%
0.800%
0.900%
Maricopa
Fire
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.035%
0.035%
0.035%
0.035%
0.035%
0.090%
0.090%
0.090%
0.090%
0.090%
0.150%
0.150%
0.150%
0.150%
0.150%
0.170%
0.170%
0.170%
0.170%
0.170%
0.300%
0.300%
0.300%
0.300%
0.300%
0.700%
0.700%
0.700%
0.700%
0.700%
1.100%
Pima
Fire
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.100%
0.100%
0.100%
0.100%
0.100%
0.150%
0.150%
0.150%
0.150%
0.150%
0.300%
0.300%
0.300%
0.300%
0.300%
0.420%
0.420%
0.420%
0.420%
0.420%
0.750%
0.750%
0.750%
0.750%
0.750%
0.800%
Other
Fire
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.020%
0.060%
0.060%
0.060%
0.060%
0.060%
0.140%
0.140%
0.140%
0.140%
0.140%
0.250%
0.250%
0.250%
0.250%
0.250%
0.420%
0.420%
0.420%
0.420%
0.420%
0.750%
0.750%
0.750%
0.750%
0.750%
1.000%
foster & FOSTER
34

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Plan Provisions
The following is a summary of the benefit provisions provided in Title 38, Chapters, Article 4 of the
Arizona Revised Statutes.
Membership
Full-time employees of an eligible group, prior to attaining age 65,
who are engaged to work for more than six months in a calendar
year. Tier 3 Defined Contribution members are able to elect
participation in post-retirement health insurance subsidy.
Benefit Tiers
Benefits differ for members based on their hire date:
Compensation
Tier 1: Hired before January 1, 2012
Tier 2: Hired on or after January 1, 2012 but before July 1, 2017
Tier 3: Hired on or after July 1, 2017
Compensation is the amount including base salary, overtime pay, shift
and military differential pay, compensatory time used in lieu of
overtime pay, and holiday pay, paid to an employee on a regular
payroll basis and longevity pay paid at least every six months for which
contributions are made to the System. For Tier 3 members,
compensation is limited by statutory cap ($110,000 with adjustments
by the Board).
Average Monthly Benefit
Compensation
Tier 1: The highest compensation paid to member during three
consecutive years out of the last 20 years of Credited Service, divided
by months.
Tier 2: The highest compensation paid to member during five
consecutive years out of the last 20 years of Credited Service, divided
by months.
Tier 3: The highest compensation paid to member during five
consecutive years out of the last 15 years of Credited Service, divided
by months.
Credited Service
Total periods of service, both before and after the member's date of
participation, for which the member made contributions to the fund.
FOSTER & FOSTER
35

Arizona Public Safety Personnel Retirement System
Actuarial Valuatior) as of June 30, 2025 - Scottsdale Fire Dept. (223)
Normal Retirement
Date
Tier 1: First day of month following attainment of 1) 20 years of service
or 2) 62nd birthday and completion of 15 years of service.
Tier 2: First day of month following the attainment of age 52.5 and
completion of 15 years of service.
Tier 3: First day of month following the attainment of age 55 and
completion of 15 years of service.
Benefit
Tier 1: 50% of Average Monthly Benefit Compensation, adjusted
based on Credited Service as follows (maximum benefit of 80% of
Average Monthly Benefit Compensation);
Credited Service
15 years, but less than 20
20 years, but less than 25
25+ years
Benefit Adjustment
Reduced 4% per year less than 20
Plus 2% per year between 20 and 25
Plus 2.5% per year above 20
Tier 2: Benefit multiplier (below) times Average Monthly Benefit
Compensation times Credited Service (maximum benefit of 80% of
Average Monthly Benefit Compensation):
Credited Service
15 years, but less than 17
17 years, but less than 19
19 years, but less than 22
22 years, but less than 25
25+ years
Benefit Multiplier
1.50%
1.75%
2.00%
2.25%
2.50%
Tier 3: Benefit multiplier (below) times Average Monthly Benefit
Compensation times Credited Service (maximum benefit of 80% of
Average Monthly Benefit Compensation):
Credited Service
15 years, but less than 17
17 years, but less than 19
19 years, but less than 22
22 years, but less than 25
25+ years
Benefit Multiplier
1.50%
1.75%
2.00%
2.25%
2.50%
FOSTER & FOSTER
36

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Form of Benefit
For married retirees, an annuity payable for the life of the member
with 80% continuing to the eligible spouse upon death. For
unmarried retirees, the normal form is a single life annuity.
Early Retirement
Date
Benefit
Form of Benefit
Only applicable to Tier 3 members
Attainment of age 52.5 and 15 years of Credited Service.
Actuarial equivalent of Normal Retirement benefit.
Same as Normal Retirement
Disability Benefit - Accidental (duty-related)
Eligibility
Total and permanent disability incurred in performance of duty.
Benefit Amount
A maximum of:
a. ) 50% of Average Monthly Benefit Compensation, and;
b. ) The monthly retirement pension that the Member is
entitled to receive if he or she retired immediately.
Disability Benefit - Ordinary (not duty-related)
Eligibility
Total and permanent disability not incurred in performance of duty.
Benefit Amount
Normal Retirement pension that the member is entitled to receive,
prorated based on Credited Service earned over the required Credited
Service for Normal Retirement (maximum ratio of 1).
Disability Benefit - Other
Temporary
Benefit equals 1/12 of 50% of compensation during year preceding
date of disability. Payments terminate after 12 months.
Catastrophic
Benefit equals 90% of Average Monthly Benefit Compensation. After
60 months member receives greater of 62.5% Average Monthly
Benefit Compensation and accrued normal pension.
Pre-Retirement Death Benefit
Service Incurred
Payable following death of active member
100% of Average Monthly Benefit Compensation, reduced by child’s
pension.
FOSTER & FOSTER
37

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Non-Service Incurred
80% of benefit based on calculation for accidental disability
retirement.
Child's Pension
Guardian's Pension
Accumulated Contributions
10% of pension for each child (maximum 20% paid) based on
calculation for accidental disability retirement. Payable to dependent
child under age 18 (23 if full-time student).
Same as spouse's pension. Payable (along with child's pension) when
no spouse is being paid and there is at least one child under 18 (23, if
full-time student).
Any contributions remaining upon the death of the last beneficiary
shall be paid as a lump sum.
Vesting (Termination)
Vesting Service Requirement
Tier 1:10 years.
Tiers 2 & 3:15 years.
Non-Vested Benefit
Tier 1: Lump sum payment of accumulated contributions, plus
additional amount based on years of Credited Service.
Vested Benefit
Service
Less than 5 years
5 years
6 years
7 years
8 years
9 years
10+ years
Additional % of Contributions
0%
25%
40%
55%
70%
85%
100%
Tiers 2 & 3: Lump sum payment of accumulated contributions, with
interest at rate determined by the Board.
Tier 1: Deferred retirement annuity based on two times member's
accumulated contributions, deferred to age 62. Member is not
entitled to survivor benefits, benefit increases, or group health
insurance subsidy.
Tiers 2 & 3: Calculated same as normal retirement pension. Payable
if contributions left in fund until reach age requirement. Member is
entitled to survivor benefits, benefit increases, and group health
insurance subsidy.
Cost-of-Living Adjustment
Payable to retired member or survivor of retired member
Tiers 1 & 2: Compound cost-of-living adjustment on base benefit. First
FOSTER & FOSTER
38

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
payment is made on July 1, 2018, with annual adjustments effective
every July 1 thereafter. Adjustment does not apply while in DROP.
Cost-of-living adjustment will be based on the average annual
percentage change in the Metropolitan Phoenix-Mesa Consumer Price
Index published by the United States Department of Labor, Bureau of
Statistics. Maximum increase of 2%.
Tier 3: Compound cost-of-living adjustment on base benefit beginning
earlier of first calendar year after the 7th anniversary of retirement or
when the retired member reaches 60 years of age.
A cost-of-living adjustment shall be paid on July 1 each year that the
funded ratio for members hired on or after July 1,2017 is 70% or more.
The cost-of-living adjustment will be based on the average annual
percentage change in the Metropolitan Phoenix-Mesa Consumer Price
Index published by the United States Department of Labor, Bureau of
Statistics. The cost-of-living adjustment will not exceed:
•
2%, if funded ratio for members who are hired on or after July
1, 2017 is 90% or more;
•
1.5%, if funded ratio for members who are hired on or after
July 1, 2017 is 80-90%;
•
1%, if funded ratio for members who are hired on or after July
1, 2017 is 70-80%.
Deferred Retirement Option Plan (DROP)
Eligibility
DROP Period
Member Contributions
Benefit Amount
Tier 1 and 20 years of Credited Service.
Maximum 84 months.
Cease upon DROP entry.
Calculated based on Credited Service and average monthly
compensation as of the beginning of the DROP period, credited to
DROP participation account for DROP period.
Interest on DROP
Participation Account
Beginning Year
July 1, 2016
July 1, 2018
July 1, 2022
Interest Rate
7.40%
7.30%
7.20%
FOSTER & FOSTER
39

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Payment of DROP
Participation Account
Payable as lump sum distribution to Public Safety Personnel
Defined Contribution Retirement Plan at earlier of 1) end of DROP
period, 2) at termination, or 3) five years.
Payment Monthly Benefit
System commences payment of benefit amount at the earlier of 1)
the end of the DROP period and 2) at termination
Post-Retirement Health Insurance Subsidy
Eligibility
Retired member or survivor who elect health coverage provided by
the state or participating employer.
Maximum Subsidy Amounts (monthly)
Member Only With Dependents
Medicare Eligible
$100
$170
One w/ Medicare
N/A
$215
Not Medicare Eligible
$150
$260
Contributions
Employee
Tiers 1 & 2: 7.65% (effective July 1, 2023).
Tier 3: 50% of total contribution, which is Normal Cost plus a level-
dollar amortization of unfunded actuarial accrued liability over a
closed period not to exceed 10 years.
Employer
Tiers 1 & 2: Normal Cost plus amortization of unfunded actuarial
accrued liability over a closed period not to exceed 20 years (subject
to one-time election to extend to closed period not to exceed 30
years).
Changes Since the Prior Valuation
None.
Tier 3: 50% of total contribution, which is Normal Cost plus a level-
dollar amortization of unfunded actuarial accrued liability over a
closed period not to exceed 10 years.
FOSTER & FOSTER
40

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Actuarial Funding Policy
A pension plan funding policy describes how pension funding will improve for underfunded plans or maintain
funded benefits for funded plans over time for those benefits defined in Arizona Revised Statutes (ARS). Those
benefits defined in ARS are to be equitably managed and administered by the Arizona Public Safety Personnel
Retirement System (PSPRS agency).
This Actuarial Funding Policy identifies the funding objectives and elements of the actuarial funding policy set
by the Board for the PSPRS agency. The Board adopted this Funding Policy to help ensure the systematic
funding of future benefit payments for members of the retirement systems as established by the legislature.
This policy covers all retirements systems administered by the Board: The Public Safety Personnel Retirement
System (PSPRS); the Correction Officers Retirement Plan (CORP); and the Elected Officials Retirement Plan
(EORP).
To achieve the systematic funding of future benefits, metrics are identified to measure the progress, or the
lack of progress, overtime to identify trends. These trends inform the continuation of the current policies or
identify areas of needed research for consideration.
This funding policy is reviewed annually and adopted by the Board in accordance with ARS 38-863.02. This
policy was reviewed and adopted by the Board in September 2025.
PSPRS Statement of Purpose
The Purpose of the Public Safety Personnel Retirement System is to provide uniform, consistent, and equitable
statewide retirement programs for those who have been entrusted to our care.
Funding Objectives
1. Maintain adequate assets so that current plan assets, plus future contributions and investment earnings,
are sufficient to fund all benefits expected to be paid to members and their beneficiaries.
a.
Corollary la: Current and future contributions should be calculated based upon assumptions that
reflect the Board’s best estimate of future experience and methods that appropriately allocate
costs to address generational equity.
b. Corollary lb: While the shorter-term objective is to fully fund the Actuarial Accrued Liability (AAL)
that estimates benefits earned as of the valuation date, contributions should target the long-term
Present Value of Benefits (PVB) to fund all benefits and help offset risks.
c.
As closed plans mature, the target funding should be 110% of AAL or 100% of PVB, whichever is
greater.
FOSTER & FOSTER
41

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
2.
Maintain public policy goals of accountability and transparency through stakeholder communication and
education. Each policy element is clear in intent and effect, and each should be considered in a balanced
approach to determine how and when the funding requirements of the plan will be met.
a. Corollary 2a: Board shall provide stakeholders with separate reports and tools to help explain
current results as well as to help model future funding requirements.
3.
Promote intergenerational equity. Defined benefit pensions are designed with a long-term perspective
and designed to minimize contribution volatility that cannot avoid some level of generational cost shift.
However, the goal is that each generation of members and employers (taxpayers) should, to the extent
possible, incur the cost of benefits for the employees who provide services to them, rather than shifting
those costs to other generations of members and employers (taxpayers).
a. Corollary 3a: A systematic reduction of the Unfunded Actuarial Accrued Liability (UAAL) over a
reasonable time period is paramount to achieving this objective.
Consideration can be given to reduce volatility, to the extent possible, of employer and employee contribution
rates as long as the integrity of the objectives listed above is not compromised.
Elements of Actuarial Funding Policy
1. Actuarial Cost Method
a. The Entry Age Normal level percent of pay actuarial cost method of valuation shall be used in
determining the AAL and Normal Cost. Differences in the past between assumed experience and
actual experience ("actuarial gains and losses") shall become part of the AAL. The Normal Cost
shall be determined on an individual basis for each active member.
2.
Asset Smoothing Method
a.
The investment gains or losses of each valuation period, resulting from the difference between
the actual investment return and assumed investment return, shall be recognized annually in level
amounts over five years (Tier 3) or seven years (Tiers 1 and 2) in calculating the Actuarial Value of
Assets (AVA).
b. The AVA so determined shall be subject to a 20% corridor relative to the Market Value of Assets
(MVA).
3. Amortization Method (Unfunded Amounts)
a.
The AVA is subtracted from the computed AAL. Any unfunded amount is amortized as a level
percent of payroll over a closed period.
b.
The unfunded liabilities, for EORP and Tiers 1 & 2 for both PSPRS and CORP, determined in the
6/30/2019 actuarial valuation will become the initial layer for each employer beginning with the
6/30/2020 actuarial valuation and amortized using the current closed year period for that
employer and continue to decrease each year.
i. The payroll grovArth rate assumption used to amortize the PSPRS Unfunded Liability will be
decreased by 0.75% each year with the intention of ultimately achieving 0.0%.
FOSTER & FOSTER
42

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
ii. The payroll growth rate used to amortize the Correction Officers Retirement Plan (CORP)
Unfunded Liability will be reduced by 0.5% until 0.0% is reached.
iii. The payroll growth rate used to amortize the Elected Officials Retirement Plan (EORP)
Unfunded Liability will be 0.0%.
c.
Gains and losses, for EORP and Tiers 1 & 2 for both PSPRS and CORP, for each employer beginning
with the 6/30/2020 actuarial valuation will be amortized as a new layer over the same
amortization period as the regular unfunded liability to a minimum of 15 years. Once the
amortization period for each employer decreases to 15 years, each subsequent year's gains and
losses will be amortized as a new 15-year closed layer.
i. The payroll growth rate used to amortize the unfunded liability for all Plans under this
paragraph will be 0.0% (i.e. level-dollar amortization).
d. Tier 3 amortization methods are established in ARS 38-843.G and ARS 38-891.K.
4. Amortization Method (Overfunded Amounts)
a. The AVA is subtracted from the target funding level (greater of 110% of AALor 100% of PVB). Any
overfunded amount is amortized as a level dollar amount over an open 10-year period.
5. Tier 3 Rate Calculation
a. Tier 3 is distinct from Tiers 1 & 2 in PSPRS and CORP as the contributions are a shared percentage
(50/50splitforPSPRS;forCORP, employer 1/3 and member 2/3 of the normal cost plus 50 percent
each, member and employer, of the UAAL amortization) for employers and members based on
the actuarially calculated rate. To reduce the impact of volatility to rates, the Tier 3 rates will be
smoothed over a 3-year rolling period based on the actuarially calculated rates for each year's
actuarial valuation.
i. Beginning with the 6/30/2023 valuation, the prospective Tier 3 rates set by the Board of
Trustees are planned to be a rolling average of the actuarial calculated Tier 3 rates using
the 6/30/2023, 6/30/2022 and 6/30/2021 rates in the initial process.
ii. As assumptions may be updated year-to-year, the prior calculated rates are not updated
for those changes, the prior calculated rates are used to smooth in the new rates.
b. At the May 2023 Board Meeting, the Board changed the assumed rate of return for CORP Tier 3,
which was at 7.2%, to match the 7.0% assumed rate of return for PSPRS Tier 3. The Board
committed to continue to monitor market conditions and directions with the intent to ultimately
adopt a single assumed rate of return for all investments for retirement systems/plans
administered by PSPRS agency.
FOSTER & FOSTER
43

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
6.
Assumed Rate of Return (ARR)
a. At the May 2023 Board Meeting, the Board changed the assumed rate of return for CORP Tier 3,
which was at 7.2%, to match the 7.0% assumed rate of return for PSPRS Tier 3. The Board will
continue to monitor market conditions and directions with the intent to ultimately adopt a single
assumed rate of return for all investments for retirement systems/plans administered by PSPRS
agency.
7.
EORP Floor Considerations
a. Establish a "floor" for EORP based on the immediately previous valuation by adjusting payroll
growth, amortization periods of the original layer or other possible options, to improve funding
in maintaining contribution levels opposed to reducing employer contributions.
Metrics TO Monitor Funding Objectives
1.
Appropriateness of Assumptions - Gain/Loss Experience (Corollary la)
a.
Metric: Do the cumulative gain/loss layers over the prior five years exceed 8% of plan assets?
b.
Measurement: History of annual gain/loss (split by asset and liability experience) and five-year
cumulative results will be tracked.
c.
Action Plan: This metric assumes that a full experience study is performed at least every five years so
objective of measurement is to monitor interim experience. If the metric answer is yes, a review of
the sources or causes of gains and losses should be analyzed and presented to the Advisory
Committee to provide a recommendation to the Board of Trustees. The analysis and presentation are
intended to provide a basis for consideration if assumption changes are warranted between full
experience studies.
2.
Funding Targets (Corollary lb)
a.
Metric: Has the funded status, on both an AAL and PVB basis when compared to the MVA, increased
over a five-year period?
b.
Measurement: History of funded status measures will be tracked.
c.
Action Plan: If the answer Is no and not readily explainable (e.g., significant assumption change), a
review of the reason(s) for the decrease should be researched and presented to the Advisory
Committee to provide a recommendation to the Board of Trustees. The analysis and presentation
are intended to provide a basis for consideration if changes to assumptions and/or methods are
warranted between full experience studies.
3.
Communication with Stakeholders (Corollary 2a)
a.
Metric: Have reports and budgeting tools been provided to stakeholders in a timely fashion?
b.
Measurement: Yes/No answer based on input from PSPRS administrator. (An annual standard survey
of stakeholders - 3 to 5 questions.)
c.
Action Plan: If the answer is no, and periodically regardless (e.g., every three years), PSPRS staff will
revisit this metric to report to the Advisory Committee to provide a recommendation to the Board of
Trustees if current reports / tools are sufficient and if the delivery timing is appropriate.
FOSTER a FOSTER
44

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
4. Timely Recognition of Costs (Corollary 3a)
a.
Metric: Has the percentage of unfunded liability subject to negative amortization decreased over a
five-year lookback period?
b. Measurement: History of unfunded liabiiity subject to negative amortization as a percentage of total
unfunded liability will be tracked.
c.
Action Plan: If the answer is no, and not readiiy explainable (e.g., adopted assumption changes being
phased in are anticipated to address negative amortization), a review of the reason(s) for negative
amortization should be researched and presented to the Advisory Committee to provide a
recommendation to the Board of Trustees. The analysis and presentation are intended to provide a
basis for consideration if changes to assumptions and/or methods are warranted between full
experience studies.
FOSTER & FOSTER
45

Arizona Public Safety Personnel Retirement System
Actuarial \/aluatian as of June 30, 2025 - Scottsdale Fire Dept. (223)
Supplementary Information
Glossary
Accrued Benefit
The benefit earned as of a specific date based on the provisions of
the plan and the member's age, service, and salary as of that date.
Actuarial Accrued Liability
The portion of the anticipated future benefits allocated to years
prior to the valuation date determined according to the plan's
Actuarial Cost Method.
Actuarial Value of Assets
The asset value used in the valuation to determine contribution
requirements. It represents the plan's Market Value of Assets (see
below), with adjustments according to the plan's Actuarial Asset
Method. These adjustments produce a "smoothed" value that is
likely to be less volatile from year to year than the Market Value of
Assets.
Actuarial Assumptions
Assumptions regarding the occurrence of future events affecting
plan costs. These assumptions include rates of investment earnings,
changes in compensation, rates of mortality, withdrawal,
disablement, and retirement as well as statistics related to marriage
and family composition.
Actuarial Cost Method
A method of determining the portion of the cost of a plan to be
allocated to each year; sometimes referred to as the "actuarial
funding method." Each cost method allocates a certain portion of
the actuarial present value of benefits between the Actuarial
Accrued Liability and future normal costs to ensure the plan is
adequately and systematically funded.
Actuarial Gain or Loss
The change in Unfunded Actuarial Accrued Liability resulting from
experience different from Actuarial Assumptions. Gains decrease
the Unfunded Actuarial Accrued Liability and losses increase the
Unfunded Actuarial Accrued Liability.
FOSTER & FOSTER
46

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Actuarial Present Value
The estimated amount of funds required as of a specified date to
provide a payment or series of payments in the future. It is
determined by discounting future payments at predetermined rates
of interest, and by probabilities of payments betvyeen the specified
date and the expected date of payment.
Amortization Payment
The portion of the plan contribution designated to pay interest and
reduce the outstanding principal balance of Unfunded Actuarial
Accrued Liability. If the amortization payment is less than the
accrued interest on the Unfunded Actuarial Accrued Liability the
outstanding principal balance will increase.
Decrements
Events which result in the termination of membership in the system
such as retirement, disability, withdrawal, or death.
Entry Age Normal Cost Method
Under this method, the normal cost is the sum of the individual
normal costs for all active participants. For an active participant,
the normal cost is the participant's normal cost accrual rate,
multiplied by the participant's current compensation.
The normal cost accrual rate equals:
(i) the present value of future benefits for the participant,
determined as of the participant's entry
age, divided by
(ii) the present value of the compensation expected to be paid to
the participant for each year of the participant's anticipated future
service, determined as of the participant's entry age.
In calculating the present value of future compensation, the salary
scale is applied both retrospectively and prospectively to estimate
compensation in years prior to and subsequent to the valuation
year based on the compensation used for the valuation.
The accrued liability is the sum of the individual accrued liabilities
for all participants and beneficiaries. A participant's accrued liability
equals the present value, at the participant's attained age, of future
benefits less the present value at the participant's attained age of
the individual normal costs payable in the future. A beneficiary's
accrued liability equals the present value, at the beneficiary's
FOSTER & FOSTER
47

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
attained age, of future benefits. The unfunded accrued liability
equals the total accrued liability less the actuarial value of assets.
Under this method, the entry age used for each active participant is
the participant's age at the time he or she would have commenced
participation if the plan had always been in existence undercurrent
terms, or the age as of which he or she first earns service credits for
purposes of benefit accrual under the current terms of the plan.
Funded Ratio
A measure of the ratio of the plan assets to liabilities of the system.
Typically, the assets used in the measure are the Actuarial Value of
Assets as determined by the asset valuation method. The Funded
Ratio depends not only on the financial strength of the plan but also
on the asset valuation method used to determine the assets and on
the Actuarial Cost Method used to determine the liabilities.
Interest Rate
The assumed long-term rate of return on plan assets.
Market Value of Assets
The fair market value of plan assets as of the valuation date.
Normal Cost
The current year's cost for benefits yet to be funded. Under the
Entry Age Normal cost method, it is determined for each participant
as the present value of future benefits, determined as of the
Member's entry age, amortized as a level percentage of
compensation over the anticipated number of years of
participation, determined as of the entry age.
Present Value of Benefits
The single sum value on the valuation date of all future benefits to
be paid to current plan participants.
Projected Annual Payroll
The projected annual rate of pay for the fiscal year following the
fiscal year beginning on the valuation date of all covered Members.
Projected Benefits
The benefits expected to be paid in the future based on the
provisions of the plan and the Actuarial Assumptions. The projected
values are based on anticipated future advancement in age and
accrual of service as well as increases in salary paid to the
participant.
FOSTER & FOSTER
48

Arizona Public Safety Personnel Retirement System
Actuarial Valuatian as of June 30, 2025 - Scottsdale Fire Dept. (223)
Total Annual Payroll
The projected annual rate of pay for the fiscal year beginning on the
valuation date of all covered Members.
Ultimate Cost
The total cost to the plan once the last benefit has been paid. The
Ultimate Cost equals
Benefit Payments
Plus: Expenses
Less: Investment Income
The Ultimate Cost is independent of the Actuarial Cost Method
selected.
Unfunded Actuarial Accrued
Liability
The difference between the Actuarial Accrued Liability and the
Actuarial Value of Assets. Under the Entry Age Normal Actuarial
Cost Method, an actuarial gain or loss, based on actual versus
expected UAAL, Is determined in conjunction with each valuation
of the plan.
FOSTER & FOSTER
49

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Discussion of Risk
ASOP No. 51, Assessment and Disclosure of Risk Associated with Measuring Pension Obligations and
Determining Pension Plan Contributions, states that the actuary should identify risks that, in the actuary's
professional judgment, may reasonably be anticipated to significantly affect the plan's future financial
condition.
Throughout this report, actuarial results are determined using various actuarial assumptions. These results
are based on the premise that all future plan experience will align with the plan's actuarial assumptions;
however, there is no guarantee that actual plan experience will align with the plan's assumptions. It is possible
that actual plan experience will differ from anticipated experience in an unfavorable manner that will
negatively impact the plan's funded position.
Below are examples of ways in which plan experience can deviate from assumptions and the potential impact
of that deviation. Typically, this results in an actuarial gain or loss representing the current-year financial
impact on the plan's unfunded liability of the experience differing from assumptions; this gain or loss is
amortized over a period of time determined by the plan's amortization method. When assumptions are
selected that adequately reflect plan experience, gains and losses typically offset one another in the long term,
resulting in a relatively low impact on the plan's contribution requirements associated with plan experience.
When assumptions are too optimistic, losses can accumulate over time and the plan's amortization payment
could potentially grow to an unmanageable level.
•
Investment Return: When the rate of return on the Actuarial Value of Assets falls short of the
assumption, this produces a loss representing assumed investment earnings that were not realized.
Further, it is unlikely that the plan will experience a scenario that matches the assumed return in each
year as capital markets can be volatile from year to year. Therefore, contribution amounts can vary in
the future.
•
Salary Increases: When a plan participant experiences a salary increase that was greater than
assumed, this produces a loss representing the cost of an increase in anticipated plan benefits for the
participant as compared to the previous year. The total gain or loss associated with salary increases
for the plan is the sum of salary gains and losses for all active participants.
•
Payroll Growth: The plan's payroll growth assumption, if one is used, causes a predictable annual
increase in the plan's amortization payment in order to produce an amortization payment that
remains constant as a percentage of payroll if all assumptions are realized. If payroll increases less
than the plan's payroll growth assumption, the plan's amortization payment can increase significantly
as a percentage of payroll even if all assumptions other than the payroll growth assumption are
realized.
•
Demographic Assumptions: Actuarial results take into account various potential events that could
happen to a plan participant, such as retirement, termination, disability, and death. Each of these
potential events is assigned a liability based on the likelihood of the event and the financial
consequence of the event for the plan. Accordingly, actuarial liabilities reflect a blend of financial
FOSTER & FOSTER
50

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
consequences associated with various possible outcomes (such as retirement at one of various
possible ages). Once the outcome is known (e.g. the participant retires) the liability is adjusted to
reflect the known outcome. This adjustment produces a gain or loss depending on whether the
outcome was more or less favorable than other outcomes that could have occurred.
• Contribution risk: This risk results from the potential that actual employer contributions may deviate
from actuarially determined contributions, which are determined in accordance with the Board's
funding policy. The funding policy is intended to result in contribution requirements that if paid when
due, will result In a reasonable expectation that assets will accumulate to be sufficient to pay plan
benefits when due. Contribution deficits, particularly large deficits and those that occur repeatedly,
increase future contribution requirements and put the plan at risk for not being able to pay plan
benefits when due.
Impact of Plan Maturity on Risk
For newer pension plans, most of the participants and associated liabilities are related to active members who
have not yet reached retirement age. As pension plans continue in operation and active members reach
retirement ages, liabilities begin to shift from being primarily related to active members to being shared
amongst active and retired members. Plan maturity is a measure of the extent to which this shift has occurred.
It is important to understand that plan maturity can have an impact on risk tolerance and the overall risk
characteristics of the plan. For example, closed plans with a large amount of retired liability do not have as
long of a time horizon to recover from losses (such as losses on investments due to lower than expected
Investment returns) as plans where the majority of the liability is attributable to active members. For this
reason, less tolerance for investment risk may be warranted for highly mature closed plans with a substantial
inactive liability. Similarly, mature closed plans paying substantial retirement benefits resulting in a small
positive or net negative cash flow can be more sensitive to near term investment volatility, particularly if the
size of the fund is shrinking, which can result in less assets being available for investment in the market.
To assist with determining the maturity of the plan, we have provided some relevant metrics in the table
following titled "Plan Maturity Measures and Other Risk Metrics". For a better understanding of the overall
Plan and the impact of these risks, please refer to the consolidated PSPRS valuation report.
Low Default Risk Obligation Measure
ASOP No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, was revised
as of December 2021 to include a "low-default-risk obligation measure" (LDROM). This liability measure is
consistent with the determination of the actuarial accrued liability shown on page 8 in terms of member data,
plan provisions, and assumptions/methods, including the use of the Entry Age Normal Cost Method, except
that the interest rate is tied to low-default-risk fixed income securities. The S&P Municipal Bond 20 Year High
Grade Rate Index (daily rate closest to, but not later than, the measurement date) was selected to represent
a current market rate of low risk but longer-term investments that could be included in a low-risk asset
portfolio. The interest rate used in this valuation was 4.81%, resulting in an LDROM of $339,467,744 for Tiers
1 and 2 and $13,792,986 for Tier 3. The LDROM should not be considered the "correct" liability measurement;
FOSTER & FOSTER
51

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
it simply shows a possible outcome if the Board elected to hold a very low risk asset portfolio. The Board
actually invests the pension plan's contributions in a diversified portfolio of stocks and bonds and other
investments with the objective of maximizing investment returns at a reasonable level of risk. Consequently,
the difference between the plan's Actuarial Accrued Liability disclosed earlier in this section and the LDROM
can be thought of as representing the expected taxpayer savings from investing in the plan's diversified
portfolio compared to investing only in high quality bonds.
The actuarial valuation reports the funded status and develops contributions based on the expected return of
the plan's investment portfolio. If instead, the plan switched to investing exclusively in high quality bonds, the
LDROM illustrates that reported funded status would be lower (which also implies that the Actuarially
Determined Contributions would be higher), perhaps significantly. Unnecessarily high contribution
requirements in the nearterm may not be affordable and could imperil plan sustainability and benefit security.
FOSTER & FOSTER
52

Arizona Public Safety Personnel Retirement System
Actuarial Valuation os of June 30, 2025 - Scottsdale Fire Dept. (223)
Plan Maturity Measures and Other Risk Metrics - Tiers 1 & 2
Support Ratio
Total Actives
Total Inactives
Actives / Inactives
Asset Volatility Ratio
Market Value of Assets (MVA)
Total Annual Payroll
MVA / Total Annual Payroll
6/30/2025
139
131
106.1%
204,427,341
20,322,107
1,005.9%
6/30/2024
147
124
118.5%
181,805,891
19,191,998
947.3%
6/30/2023
167
108
154.6%
162,304,402
19,731,843
822.6%
6/30/2022
197
78
252.6%
146,299,234
22,323,003
655.4%
Net Cash flow Ratio
Net Cash Flow ^
Market Value of Assets (MVA)
Net Cash Flow / MVA
2,810,065
204,427,341
1.4%
2,868,479
181,805,891
1.6%
5,058,479
162,304,402
3.1%
13,527,714
146,299,234
9.2%
6/30/2021
211
65
324.6%
138,628,147
22,406,182
618.7%
Accrued Liability (AL) Ratio
inactive Accrued Liability
128,118,786
112,968,665
95,586,822
64,624,158
49,213,912
Total Accrued Liability
242,742,245
215,378,085
197,041,521
175,460,788
150,025,034
Inactive AL/Total AL
52.8%
52.5%
48.5%
36.8%
32.8%
Funded Ratio
Actuarial Value of Assets (AVA)
196,635,706
179,933,092
165,296,223
150,282,036
126,736,264
Total Accrued Liability
242,742,245
215,378,085
197,041,521
175,460,788
150,025,034
AVA/Total Accrued Liability
81.0%
83.5%
83.9%
85.6%
84.5%
4,206,641
138,628,147
3.0%
^ Determined as total contributions minus benefit payments. Administrative expenses are typically included but are considered part of the net interest rate
assumption for this plan.
S i FOSTER & FOSTER
^
53

Arizona Public Safety Personnel Retirement System
Actuarial Valuation as of June 30, 2025 - Scottsdale Fire Dept. (223)
Plan Maturity Measures and Other Risk Metrics - Tier 3 ^
6/30/2025
6/30/2024
6/30/2023
Support Ratio
Total Actives
144
99
92
Total Inactives
14
11
6
Actives/Inactives
1,028.6%
900.0%
1,533.3%
Asset Volatility Ratio
Market Value of Assets (MVA)
8,327,194
5,538,673
3,575,797
Total Annual Payroll
13,001,681
7,998,384
6,670,368
MVA/Total Annual Payroll
64.0%
69.2%
53.6%
ACCRUED Liability (AL) Ratio
Inactive Accrued Liability
966,047
854,668
119,728
Total Accrued Liability
8,165,612
5,239,450
3,308,642
Inactive AL/Total AL
11.8%
16.3%
3.6%
Funded Ratio
Actuarial Value of Assets (AVA)
7,925,171
5,374,734
3,568,699
Total Accrued Liability
8,165,612
5,239,450
3,308,642
AVA/Total Accrued Liability
97.1%
102.6%
107.9%
Net Cash flow Ratio
Net Cash Flow 1
1,959,413
1,448,971
1,201,947
Market Value of Assets (MVA)
8,327,194
5,538,673
3,575,797
Net Cash Flow / MVA
23.5%
26.2%
33.6%
6/30/2022
69
5
1,380.0%
2,119,063
4,692,163
45.2%
65,411
2,023,236
3.2%
2,158,674
2,023,236
106.7%
813,084
2,119,063
38.4%
6/30/2021
56
3
1,866.7%
1,390,278
3,217,600
43.2%
19,927
1,207,036
1.7%
1,226,392
1,207,036
101.6%
541,470
1,390,278
38.9%
‘ Determined as total contributions minus benefit payments. Administrative expenses are typically included but are considered part of the net interest rate
assumption for this plan.
^ Tier 3 results are shown for the Risk Sharing group, where applicable.
FOSTER & FOSTER
54