Increases

As a participant in CORP as a Tier 1, 2 or 3 DB Memberbenefits that are available to you vary depending on your Membership Tier:

Increases for Tier 1, 2 and 3 DB Members

In accordance with Proposition 125 passed by the State of Arizona voters in November 2018, the Cost of Living Adjustment (COLA) increases for correction officer retirees and survivors will be determined based on the Consumer Price Index (CPI) for the metropolitan Phoenix-Mesa area for the calendar year ending prior to each July payout and will be capped at 2%.  Since this proposition became law, it overrides all prior increase calculation methods for correction officer retirees.  The law also stated that CORP must prefund this COLA, which meant that the first time that a COLA may be granted, could occur with the July 1, 2020 benefit check, contingent on the CPI.  The law also specified that the COLA will be prorated for members in their first year of retirement based on their retirement date.  

The following table provides examples of how the increase is calculated for members in their first year of retirement:

Example 1: Effective retirement date 7/1/2019

# of months retired: 12

Example 2: Effective retirement date 1/1/2020

# of months retired: 6

Example 3: Effective retirement date 6/1/2020

# of months retired 1

Example 4: Effective retirement date  7/1/2020

Base benefit

$1,000.00

Base benefit

$1,000.00

Base benefit

$1,000.00

Not eligible for the increase this year since the member was not retired prior to the effective date of the increase

2% COLA

     $20.00

2% COLA

    $20.00

2% COLA

     $20.00

Eligible for the full increase

Eligible for 6 months of the increase

Formula: $20 / 12 (months) x 6 (months) = $10.00

Eligible for 1 month of the increase

Formula: $20 / 12 (months) x 1 (month) = $1.67

New base

$1,020.00

New base

$1,010.00

New base

$1,001.67

 

Additional Increase Requirements for Tier 3 DB Members

The increase will be payable after 7 years of retirement, or at age 60, whichever comes first, and will be determined based on the funding level of the CORP.

 Funding Level

Increase 

 70% to < 80% 

1.0% cap 

  80% to < 90% 

1.5% cap

90% or more

2.0% cap

 

Funding Levels

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 and for personal account information, you may access your account online via Members Only.