HomeMy WebLinkAboutMinutes - Public Safety Personnel Retirement System Board - 3/12/2024MINUTES
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
REGULAR SESSION
March 12, 2024
KACHINA CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
REGULAR SESSION AT OR AFTER 3:00 PM
CALL TO ORDER
The meeting was called to order at 3:00 p.m.
ROLL CALL
Present: David Gephart, Chairman
Roger Reynolds, Member
Weston Barkley, Member
Katherine Beck, Member
Kathleen Hernandez, Member
Staff Present:Jennifer Inboden, Local Board Secretary
Andrew Apodaca, Local Board Independent Legal Counsel
Wendy Gomez, Deputy Finance Director
Andrew Apodaca attended via Teams
CALL TO AUDIENCE - There were no speaker requests.
Notice of Possible Executive Session
Pursuant to ARS § 38-431.03 (A)(2)(3), the Board may vote to convene in executive session to discuss or
consider confidential records exempt by law from public inspection, and/or to consult with the Board's attorney for
legal advice and to consider the Board's position and to instruct the Board's attorney regarding its position in
contemplated litigation regarding Agenda Items 3-4. The Board will take action on these items in open session.
REGULAR SESSION AGENDA
1.PRESENTATION AND DISCUSSION OF THE PSPRS 2024 EMPLOYER - LOCAL BOARD
CONFERENCE
Wendy Gomez attended the 2024 Employer Local Board Conference. She reported that an actuarial
audit was performed that returned 99% accuracy. The statistics on funding status were impressive; many
municipalities have made progress. Excluding the lowest 10%, all other municipalities are 88% funded.
Their investment return for last fiscal year was 7.6%.
Newer plan members are not valuing the Defined Benefit pension plan as much as long-term members
do. PSPRS is working on recruitment and retention efforts and educating members about the value of the
Defined Benefit plan and the importance of planning for retirement.
PSPRS walked through a couple of House Bills that are in the current legislative session. One bill is a
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standard requirement to continue PSPRS and another is an administrative bill pertaining to IRS
compliance. There is a section in one of the House bills that addresses lateral transfers and the possibility
of their assets or liabilities from their former agency transferring with them to their new agency, but the
overfunded or underfunded status would stay with the former agency. The final House Bill that was
mentioned was regarding the time frame for public records requests requiring municipalities to provide
information within 5 days.
PSPRS mentioned the option for Tier 3 Defined Contribution members to take out loans from their
accounts. DC plan members also have the option to contribute higher than the default 9% rate up to the
IRS limit.
Joann Lowey gave an update on the Pension Administration System (PAS). Their intent is to implement
Phase One by the 3rd quarter of FY 2025. Wendy reported that the Town has submitted test files that
were successful.
Investment staff from PSPRS said that oftentimes a large focus is put on the investment return, but they
reported that pay changes have a bigger impact on the plan than investment returns. They reviewed how
gains and losses are amortized over seven years to keep employer rates less volatile.
PSPRS went over a modeler program that is available for employers to plug in different assumptions to
forecast rates.
Mark Rodriguez spoke about the cancer insurance program and changes regarding how employees
receive their distributions.
Member Beck asked how well OVPD is funded. Chair Gephart answered that we are 95% funded which is
a drop from 102% a year ago. He stated that we have allocated $2.5 million in additional contributions in
the current budget year to get closer to 98-100% funded.
Member Beck asked about the difference between Defined Benefit and Defined Contribution. Secretary
Inboden explained that Defined Contribution is a new option only available to Tier 3 members. The
general recommendation from PSPRS is that only members who are not planning on staying in public
safety for at least five years should elect Defined Contribution. New members have 90 days to make their
decision and they cannot revoke it beyond 90 days.
2.REVIEW AND APPROVAL OF THE NOVEMBER 16, 2023 REGULAR SESSION MEETING MINUTES
Member Beck asked if the Town's process for communicating with members regarding the possibility of
the Local Board declaring pre-existing conditions was working. Secretary Inboden confirmed that the
current process of notifying new members and giving them notice of their 30 days to respond was
working.
Motion by Chairman David Gephart, seconded by Member Katherine Beck to approve the November
16, 2023 regular session minutes.
Vote: 5 - 0 Carried
3.NEW MEMBERSHIP APPROVAL AND REVIEW FOR POSSIBLE PRE-EXISTING CONDITIONS FOR
NEW OFFICER MAXIMILIANO DOMINGUEZ AGUIRRE, HIRE DATE JANUARY 16, 2024, TIER 3 DATE
APRIL 15, 2024
Motion by Chairman David Gephart, seconded by Member Kathleen Hernandez to find that Maximiliano
Dominguez Aguirre meets all applicable PSPRS membership definitions, including the definition of
Member, A.R.S. § 38-842 (31), and all its related definitions, and regular assignment to hazardous duty,
pursuant to A.R.S. § 38-842 (42), effective on the date of his hire, January 16, 2024, with a Tier 3 date of
April 15, 2024, AND to declare the Board's finding of no pre-existing conditions as noted in the medical
examination report.
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Vote: 5 - 0 Carried
4.NEW MEMBERSHIP APPROVAL AND REVIEW FOR POSSIBLE PRE-EXISTING CONDITIONS FOR
LATERAL OFFICER ZACHARY DIETRICH WITH A HIRE DATE OF FEBRUARY 26, 2024
Motion by Member Roger Reynolds, seconded by Member Katherine Beck to find that Zachary Dietrich
meets all applicable PSPRS membership definitions, including the definition of Member, A.R.S. § 38-842
(31), and all its related definitions, and regular assignment to hazardous duty, pursuant to A.R.S. §
38-842 (42), effective on the date of his hire, February 26, 2024, AND to declare the Board's finding of
one (1) pre-existing condition as noted in the medical examination report.
Vote: 5 - 0 Carried
5.REVIEW AND APPROVAL OF RESIGNATIONS AND RETIREMENTS OF THE FOLLOWING
MEMBERS, THUS TERMINATING THEIR MEMBERSHIPS: MICHAEL RYSKE RESIGNATION
EFFECTIVE DECEMBER 1, 2023, ALEJANDRO CARRILLO RESIGNATION EFFECTIVE JANUARY 19,
2024, CHRISTOPHER OLSON RETIREMENT EFFECTIVE JANUARY 27, 2024
Motion by Chairman David Gephart, seconded by Member Roger Reynolds to approve the resignations
and to terminate the memberships of Michael Ryske and Alejandro Carrillo AND to approve the
retirement and to terminate the membership of Christopher Olson.
Vote: 5 - 0 Carried
ADJOURNMENT
Motion by Member Katherine Beck, seconded by Member Kathleen Hernandez to adjourn the meeting
at 3:33 p.m.
Vote: 5 - 0 Carried
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the
Town of Oro Valley Public Safety Personnel Retirement System Board of Oro Valley, Arizona held on the 12th day
of March, 2024. I further certify that the meeting was duly called and held and that a quorum was present.
Dated this _12th_ day of ____March______, 2024.
___________________________
Jen Inboden
Human Resources Analyst
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