Tucson City Manager Michael Ortega is changing the way the City has been paying into Arizona's underfunded Public Safety Personnel Retirement System (PSPRS) for police and fire pensions. In an effort to save on interest payments, the City will pay about $40 million of its $54 million pension bill upfront, instead of making a smaller payment every two weeks. The money will come from the City's cash flow and reserves, which will be replenished over the year, Ortega said.
Next year's PSPRS bill is expected to be at least $81 million. The fund took a hit in recent years, losing assets during the recession.