After much anticipation, PSPRS has made individual Hall-Parker contribution refund amounts available to members this morning.
The information is on the Members Only portal on of the PSPRS website and and members of PSPRS-managed plans are encouraged to open an account if they haven’t already opened one.
Please note these refunds will be distributed by the City of Phoenix and the time frame for refunds is expected to vary. The fact that individual amounts – with or without applicable interest – posted does not mean the City will be able to issue immediate refunds.
PSPRS is asking that members be patient with PSPRS (their call center will not have any additional information) as well as employers, as the refund process is extremely complex and is restricted by state and federal laws. PSPRS will continue to provide updates as they arise.
Keep in mind final arrangements regarding disbursement of the refunds still has to be coordinated between the City and our local Pension Board, which has representatives from the Police and Fire Departments on it.
Regarding the refunds:
- PSPRS is not actually sending money back to the City; they are providing a credit.
- The City has to come up with approximately $62, 000, 000 to cover refunds between Police and Fire personnel.
- In order for the City to have the needed funds, the City is not making payments for a few months and is holding that money to pay everyone.
- PSPRS Members probably will not receive a refund until the Fall.
- Despite speculation the City is intentionally drawing out the process, it is directly related to the City having to acquire the capital needed to make the payments and to give the members the ability to talk with their tax and investment advisors as to best practices regarding what to to with their refund.
- As of now, the only two options are to take a cash payout taxed at 28% or roll it into your Nationwide 457 (deferred compensation) account.
- Another option being considered is to portion the refund out as some people may hit their maximum contribution rate for their 457 accounts.
Please note that interest calculations have not yet been factored in to the refund amounts.
This information is the most current based on what PSPRS has put out and what we have been told by a representative from our local pension board and we will provide updates as soon as we receive them.
CLICK HERE for the update provided to PSPRS members on May 31, 2017, which includes a link to the detailed report provided to the PSPRS Board of Trustees on the Hall-Parker payments.
As always, you can contact the PLEA Office if you have any questions.