Arizona’s corrections and detention officers have relied on retirement benefits from the Corrections Officer Retirement Plan since 1986. Those hired on or after July 1, 2018, to work in state prisons, county or municipal jails, are automatically enrolled in the Public Safety Personnel Defined Contribution Retirement Plan (PSPDCRP).

The PSPDCRP is a retirement plan in which both members and employers make contributions into an individual 401(a) investment account established for each participant. Member contributions are made on a pre-tax basis and generate an employer matching contribution. The accounts are managed by Nationwide Retirement Solutions and overseen by the PSPRS Defined Contribution Committee, which consists of PSPRS trustees and members of the public safety, corrections and elected officials retirement plans.

PSPDCRP participants can allocate contributions to various investment options, including target date funds, mutual funds, index funds and bond funds. The benefit available to plan members upon retirement is determined by both contributions and investment performance of the funds chosen by participants. Defined contribution plans are a proven wealth and retirement security building tool but participants bear the risk of market volatility and economic conditions.

For additional information, participants in the 401(a) plan can visit www.psprsdcplan.com or contact Nationwide Retirement Solutions by calling 1-855-297-8228 or emailing [email protected] for assistance.

Making the choice

New corrections and detention officers must review and act on several of their options within 90 days of their hiring date. These decisions, which are irrevocable under most circumstances, must be made through the Members Only portal. PSPRS, which manages the corrections retirement plan, emails new members access instructions to the portal.

• Member contribution rate: New officers can adjust their pre-tax salary contribution to their 401(a) retirement account from the default rate of 7 percent. This amount can be raised to IRS limits or lowered as far as 5 percent.
• Health insurance subsidies: New members can choose to contribute to a health insurance subsidy. This benefit is payable monthly to members when they retire from the system to reduce their health and dental insurance costs. The decision to opt-in to contribute towards this subsidy benefit is irrevocable under IRS rules and contributions are non-refundable. Members must meet retirement eligibility requirements to receive the benefit.

All new Tier 3 members begin making pre-tax contributions to their retirement plans on their 91st day of employment. Contributing towards retirement is mandatory and managed by your employer throughout your public service career.

PSPRS/CORP has partnered with Public Safety Financial/Galloway to provide free benefit selection and retirement planning consultations to plan members. PSPRS does not endorse any firms for asset management services to plan members.

PSPRS provides resources to assist new members in making informed decisions.

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