Increases

As a participant in CORP, the benefits that are available to you vary depending on your Membership Tier, as well as there are many factors that determine if an increase will be paid – such as monies available, rate of return, funding level for CORP, your membership date and other eligibility requirements.  However, it is important to be aware that Arizona voters will be asked to reform the permanent benefit increase (PBI) structure for CORP (and EORP) on the November 2018 ballot with a cost-of-living-adjustment (COLA) model similar to Proposition 124 for public safety retirees, which voters passed in 2016.  If the increase reform is supported by the Arizona voters, it would replace the following/current PBI structure.

Permanent Benefit Increase (PBI)

All eligible retirees and survivors with a membership date prior to July 20, 2011 received a PBI of 1.76% in December 2017, retroactive to July 1, 2017.  For members with a membership date on/after July 20, 2011, there was no increase available on July 1, 2017 due to the PBI requirements.

The following chart is provided outlining how increases are granted based on your membership date and the eligibility requirements: 

Tier 1: For Retirees with an effective membership date prior to July 20, 2011

Tier 1 and Tier 2:  For retirees with an effective membership date on/after July 20, 2011 (new rules effective July 1, 2013)

If the rate of return of the net assets for the preceding June 30 for the System is above 9%, one-half of the excess earnings above 9% will be placed into a reserve account to issue to the base benefit for the eligible retirees and beneficiaries, If these conditions are met, you must meet 1 of the Eligibility Requirements and the maximum increase is 4% of your base benefit.

If the rate of return for the System is above 10.5% for the preceding June 30 and the funding level for each of the Plans is at least 60% or greater, the System will be able to grant an increase based on a Funded Ratio.  If these conditions are met, you must meet 1 of the Eligibility Requirements.

Eligibility Requirements

Regardless of age, you (or a survivor) are eligible if you were receiving  benefits on or before July 31 of the past 2 years,

or

You are at least 55 on July 1 of the current year and you were receiving benefits on or before July 31 of the previous year.

Retirees (or a survivor) is 55 or older on July 1 of the current year and is receiving benefits, or

If the retiree is under 55 on July 1 of the current year and receiving benefits on or before July 31 of the two previous years, or

If the retiree is receiving an accidental disability or a catastrophic disability retirement benefit.

Please note that since increases are determined using current year data (ending fiscal year June 30), the System will not know the result if an increase is available, or the amount, until September/October of each year; however, if granted, it will be paid retroactive to July 1.

To help you understand the factors and investment methodologies, you may view current and prior fiscal year information in the CAFR (Comprehensive Annual Financial Report), or the Actuarial Valuations under Annual Reports.

Additional Services

For additional benefit information, you may access the CORP Member Handbook. For personal account information, you may Create a Members Only Account online and then access it at Members Only.