The Maricopa County Board of Supervisors today unanimously took action to cancel all unfunded pension liabilities for retiring law enforcement officers.

“This is a major victory for fiscal responsibility, as other governments fall further behind in pension funding, and we are ensuring these valued public servants receive the retirement benefits they've earned,” said Chairman Jack Sellers, District 1. “I applaud my colleagues on the Board for their commitment to this important issue and the budget and finance team for their expertise in executing a pension funding strategy.”

“The cost of government sector employee pension plans has risen dramatically in recent years, limiting discretionary spending. Beginning with Budget 2023, the Board has taken advantage of low interest rates to pay down unfunded pension liabilities and redirected $500 million to the Public Safety Personnel Retirement System (PSPRS) and Corrections Officers Retirement System (CORP). Today's vote authorized the funding to pay down the remaining pension liabilities.”

“Paying off pension debt is good governance and will result in financial savings in the long run,” said Vice Chairman Thomas Galvin, District 2. “It's also a proactive step we can take to ensure our public safety heroes get the retirement benefits they deserve.”

The County is utilizing the funds to pay down pension liabilities because repayments are not subject to spending limits in the Arizona Constitution. The County anticipates the repayment period will be short. As a result of this funding strategy, the total cost to taxpayers will be less than if the Commission had done nothing.