AZ PSPRS Continues to be Mismanaged
Small cities throughout Arizona continue to struggle to make minimum pension payments, required by law, to the Public Safety Personnel Retirement System (PSPRS). As reported in the 6/7/2020 Herald Review, Bisbee faces a just under $1.5 million payment into the retirement fund this year. Bisbee Mayor David Smith says PSPRS is "drastically under performing."
Various scandals have plagued the board and trustees that oversee the pension fund going back to 2014. The fund has consistently lagged the other Arizona pensions system, Arizona Retirement System (ARS), the pension fund that covers state and local elected officials and government employees, often having a return on investment of less than half compared to ARS.
Our local state elected officials, have shown no interest in reforming PSPRS.
If elected, I will push for several immediate "reforms":
- Oversight hearings by the Senate & House appropriate committees focusing on financial management of the fund.
- Necessary legislation that will reconstitute the membership of the board of trustees of the fund. The fund should be managed by professional money-managers who report on a regular basis to the participants and to the state legislature and governor.
The continuing mismanagement of PSPRS has harmed retirees who have earned a reasonable pension without the fear that the fund will be insolvent. Cities and counties throughout Arizona have been forced to pay larger and larger amounts into the fund because of poor returns. These payments take monies away from other essential municipal services.
It is time for a major change in the way PSPRS is run.
If you would like more information - google "arizona psprs scandals" and "psprs"
More information at the Arizona Republic