Payson council adopts PSPRS funding policy, adds $600,000 payment to target full funding by 2036

The Payson Common Council on June 25 adopted an annual pension funding policy for the Public Safety Personnel Retirement System (PSPRS) that accepts the system's actuarial valuation, sets a target of 100% funding by June 30, 2036, and includes an extra $600,000 payment for fiscal year 2026.

The policy matters because PSPRS liabilities drive a large and growing portion of the town's personnel costs; the council's $600,000 supplemental payment is intended to reduce the town's unfunded liability and slow increases in the town's annual required contribution (ARC).

Dana Ohansian, Payson's finance director, told the council the town formally accepts PSPRS's actuarial figures for the year and described the recommended policy. "This agenda item is an annual funding policy that's brought before the council regarding the PSPRS retirement fund," Ohansian said, summarizing the state requirement and the town's plan. Ohansian told the council the actuarial valuation lists the town's assets at about $28,200,000 and liabilities at about $47,200,000, leaving an unfunded liability of roughly $19,000,000. He said the voluntary $600,000 payment would be made in FY26 to help reach full funding by 2036.

Councilmember Charlie Bell said he planned to vote against the measure, arguing the town's past supplemental payments had not reduced the liability quickly enough. "I want I'm gonna vote against it because we've been paying this amount... we've been slipping backwards," Bell said. Other council members and staff explained how PSPRS structures ARC calculations and how additional one-time payments reduce principal and can lower future ARC rates.

After discussion, a motion to approve the pension funding policy and authorize posting it to the town website passed 6-1. The council did not record individual roll-call votes in the public transcript; the chair announced "Motion passes 6 to 1." The policy document sets the formal funded-ratio goal (100% by 06/30/2036) and records the town's acceptance of the actuarial numbers.

Council members outlined ways to accelerate progress outside this vote, including applying one-time revenues to principal and paying ARC for vacant public-safety positions when feasible. Ohansian and other staff noted the ARC itself is recalculated annually and that salary increases or added staffing can raise the town's annual contribution even as principal is paid down.

The council's packet materials attached the actuarial valuation and an explanatory schedule; the transcript records the presentation, debate and the final motion. The council instructed staff to post the adopted policy to the town website as required by state law.