Pension Services Overview

Fiscal Year 2021/22

Mission Statement

To assist Tucson Supplemental Retirement System (TSRS) members with planning for a secure retirement; and provide monthly retirement benefits that supplement social security benefits and personal investment savings of our members and their beneficiaries.

Programs

The following programs are included in this department:

Staffing By Program


*Full Time Equivalent Employee (FTE)

Budget By Program



Department Expenses

Budget By Expense Category

Budget By Funding Source

Significant Changes

The adopted budget for Fiscal Year 2021/22 of $95,770,820 reflects a net increase of $1,147,010 from the Fiscal Year 2020/21 Adopted Budget. Major changes include the following:


  • Increase in retiree and beneficiary payments by $910,000
  • Increase in TSRS refunds by $141,000

Trends

The Tucson Supplemental Retirement System (TSRS) sets retirement rates for both employees and for the City. These rates are a direct cost to both the individual employee and the City as a whole. The funded ratio increased from June 30, 2019 to June 30, 2020 primarily due to anticipated improvement based on the current funding policy. On a market value basis, the funded ratio decreased from June 30, 2019 to June 30, 2020, due to market value investment returns less than the assumed 7.00% during the year. The Board has adopted a funding policy which rounds up the employee and City contribution rates, sets a 27.50% minimum on the City contribution rate until full funding is reached. Based on this funding policy, the System is projected to reach full funding in 2037.

Accomplishments

Based on the actuarial valuation as of June 30, 2020, the Plan has an unfunded liability of $306.5 million and a funded ratio of 73.3%. This is a slight increase in the funded ratio, from 72.8% to 73.3%, primarily due to anticipated improvement based on the current funding policy.

Future Objectives

To reduce unfunded liability and increase the funded ratio to reach the Retirement System fully funded.