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Gila County delays payment on $375,263 PSPRS shortfall pending actuarial answers
Summary
County staff reported a $375,263 unfunded actuarial accrued liability in the sheriff’s PSPRS trust fund; after supervisors pressed for an explanation of last year’s $502,057 surplus, the board voted to delay funding and asked PSPRS to meet the board for a work session.
The Gila County Board of Supervisors on March 17 voted to postpone paying a $375,263 unfunded actuarial accrued liability in the sheriff’s public‑safety pension trust while staff seeks a fuller explanation from the Public Safety Personnel Retirement System (PSPRS).
County staff told the board the PSPRS report showed a shortfall of $375,263. Finance staff noted that the same fund showed an excess of $502,057 the prior year and that PSPRS staff could not explain the swing. “We are seeing a shortfall in one of the three funds in the amount… $375,263,” the county finance representative told the board. She added that last year the fund had an excess and that PSPRS labeled the unexplained items under a catch‑all “other” category.
Supervisors debated three options presented by staff: (a) fund the $375,263 now, (b) wait for the next actuarial report to see whether the current fiscal‑year performance changes the liability, or (c) fund a larger amount than the stated shortfall. Several supervisors urged patience. “If it swings that much, rather than give them money, my preference would be just to wait,” one supervisor said, noting past year‑to‑year volatility.
The board voted to adopt the “wait and see” approach (policy B) and directed staff to schedule a work session that includes PSPRS representatives so supervisors can ask questions about the actuarial calculations and the composition of the “other” category. The board recorded a majority vote to postpone immediate payment while preserving the option to revisit funding after the December actuarial reports are released.
County officials also discussed the county’s constrained fiscal situation and competing priorities, including flood response and a proposed $18 million bonding proposal that would increase annual debt service projections. Finance staff said there is no statutory penalty for waiting and reminded the board that the county will receive updated actuarial reports in December following the fiscal year close.
The board’s next opportunity to revisit the matter will be after the next actuarial reports are available and following the planned PSPRS work session.
