Contribution Rates & Reporting

September 3, 2019
Attention CORP Employers:

As a result of HB 2422 effective 9/1/2019, all incoming Tier 3 Correction and Detention Officers that are required to pay into the Public Safety Personnel Defined Contribution Retirement Plan (PSPDCRP), administered by Nationwide Retirement Solutions, will now have 90 days to elect their contribution rate. 

As the employer, your process for this membership will be the same – which is, upon hire/rehire for all NEW incoming membership positions on/after 9/1/2019, you will add the Demographics for the employee in the Employer Portal and complete/return the revised CORP New Hire Notification Form (Form C1) revised 10/2019.  Once the employee is added in the portal, an email will be sent to the employee with instructions.

For additional procedure questions, Click Here.


Employers who participate in our Plans are required by law to enroll and report Pensionable Compensation for all eligible employees.  Accurate reporting of contributions is critical to ensure members receive proper credited service, as well as establish appropriate salary information in determining future retirement benefits.

Contribution Rates - Employees and Employers

Clicking on the link below will allow you to open an Excel file(s) that contains employee and employer contribution rates, based on an employee's Membership Tier in all three Plans, Public Safety, CORP and EORP.  (The Membership Tier page also includes the PSPRS and CORP Matrix of Plan Provisions.) The spreadsheets contains 5 tabs--2 for Public Safety, 2 for CORP and 1 for EORP.  Rates are found in the "Rates" tabs.  Enter your Employer ID in cell A4 to find Public Safety and CORP rates.  If you do not know your employer ID, you can find it in the "Employer ID" tabs.  EORP rates are the same for all employers, so are shown in a table.

New fiscal year rates will always begin with the first pay period ending in July of each year. 

Employers may prepay their contributions in order to take advantage of having assets invested all year, or they may make extra payments to pay down their unfunded liabilities.  If you are interested in doing either of these, please contact us ahead of time at finance@psprs.com.

Public Safety Tier 2 Members – DC Hybrid Rates

Public Safety Tier 2 members who are not covered by Social Security, in addition to their DB Plan contributions, will contribute 3% of their pensionable compensation for their entire participation in PSPRS into the DC Hybrid plan administered by Nationwide Retirement Solutions.  As an employer, you will be contributing to the DC Hybrid plan on behalf of those members and, for a limited period, the contribution rate will be set at 4% based on a tier structure of when the member began participation in PSPRS, and it will then reduce to 3%.

Current Membership (Hire) Date

4% Employer Contribution Rate

3% Employer Contribution Rate

2012

Beginning 7/1/2017 through 06/30/2024

Beginning 7/1/2024

2013 

Beginning 7/1/2017 through 6/30/2023

Beginning 7/1/2023

2014

Beginning 7/1/2017 through 6/30/2022

Beginning 7/1/2022

2015

Beginning 7/1/2017 through 6/30/2021

Beginning 7/1/2021

2016 

Beginning 7/1/2017 through 6/30/2020

Beginning 7/1/2020

Up to June 30, 2017

Beginning 7/1/2017 through 6/30/2018

Beginning 7/1/2018

On/after July 1, 2017

N/A

Beginning with first pay period

Contribution Reporting

Our Employer Payroll Portal is used to submit your contribution files to PSPRS and for employers to perform the Employee Lookup feature to determine membership tiers, contribution rates, notify PSPRS when a new employee is hired, terminates, goes on a leave, or returns to service.  The following "how to" tutorials may be helpful as you enter demographic and contribution information:

In order to view invoices that are generated when contribution files are submitted, you must be registered to use Wells Fargo's E-Bill Express.  If you have not yet registered, please contact our office at finance@psprs.com to get registered.  You do not need to pay your contributions on E-Bill Express, but you can use the E-Bill Express site to pay by ACH, electronic check or credit card.  Employers are encouraged to remit contribution payments using electronic funds transfer; however, the System will accept contribution payments made by check.  For those employers who wish to remit contribution payments by check, they must do so by mailing payments to:

PSPRS/CORP/EORP
P.O. Box 17670
Phoenix, AZ  85011-0670

By law, contribution payments are to be made no later than 10 days after the end of each employer's pay period.  Failure to remit payments on a timely basis will result in assessment of penalties and interest as provided by state statute.  Contributions withheld from member’s paychecks are done on a pre-tax basis.

Nationwide Reporting for Employers of PS, CORP and EODCRS

For employers that are required to pay into Nationwide Retirement Solutions (NRS) on behalf of employees that either elect, or mandated to participate in the Public Safety Personnel Defined Contribution Retirement Plan (PSPDCRP), the payroll (or appropriate) department will need to read the Nationwide SecurePay notice titled “Feeling overwhelmed with payroll processing” and complete the NRS Packet, which includes the Employers Security Administrator Request Form and Employer Data Sheet.  Upon completion of the packet, return the forms either by:

  • Fax: (877) 677-4329, attention Automation Technical Support
  • Email: NRSCONTR@nationwide.com, or
  • Mail: Nationwide, P.O. Box 182797, Columbus, OH  43218

Failure to return the packet in a timely manner may result in delays in processing contributions.

For standard questions, contact NRS at (602) 266-2733, or (888) 224-1011.
For payroll submission questions, contact NRS at (877) 496-1630, option 3.

Nationwide Employee Enrollment Process

PS Tier 3 and CORP Tier 3 AOC Probation and Surveillance Officers: Nationwide enrollment is processed via Members Only portal.

Correction and Detention:  Nationwide enrollment is processed via CORP Plan Enrollment Form.

EODCRS: Employers will need to provide the newly appointed or elected officials (on/after January 1, 2014) that participate in the Elected Officials’ Defined Contribution Retirement System (EODCRS) with a EODCRS Nationwide Participation Agreement.

Alternate Contribution Rate (ACR)

Legislation passed in 2011 which requires employers to pay an Alternate Contribution Rate (ACR) when they employ a PSPRS, CORP or EORP retiree.  This rate is strictly charged to the employer as a way to lessen any potential actuarial impact caused by hiring a retiree in a position that would normally be filled with a contributing employee.

The ACR is individually set for each participating employer group and determined each year during the System’s annual actuarial valuation. The ACR is meant to help pay the unfunded liability amortization payment, and is calculated by combining the amortized unfunded liability contribution rates for both the cost of pension and health, with a minimum amount of 8% in PSPRS and 6% in CORP.  Employers can access this information from the Contribution Requirement section in their annual Individual Actuarial Valuation Report.  For the EORP ACR and Retirement Path information, see EODCRS.

Employers must report ACR data and payments using their normal payroll reporting processes to the System.  This would include uploading data through the Employer Payroll Portal.  Employers who submit late ACR payments are subject to interest being charged against those payments.

For more information on contribution reporting and payment remittance, please contact our Active Members Department.

Determining Pensionable Compensation

In order to properly report wages and withhold contributions, employers need to understand what is considered compensation.

Compensation for PSPRS Members

What is included as pensionable compensation

What is NOT included as pensionable compensation

  • Base salary
  • Shift differential pay
  • Military differential pay
  • Holiday pay
  • Overtime pay
  • Sick time used
  • Vacation time used
  • Compensation time used
  • Pay earned by third party contracts between public agencies
  • Longevity payments, as long as it is paid at least every 6-months
  • Lump sum payments of accrued unused vacation time
  • Lump sum payments of accrued unused sick time
  • Lump sum payments of accrued unused compensatory time
  • Uniform allowances, car allowances or other fringe type benefit payments

 

Compensation for CORP Members

What is included as pensionable compensation

What is NOT included as pensionable compensation

  • Base salary
  • Shift differential pay
  • Military differential pay
  • Holiday pay
  • Sick time used
  • Vacation time used
  • Compensation time used
  • Lump sum payments of accrued unused vacation time
  • Lump sum payments of accrued unused sick time
  • Lump sum payments of accrued unused compensatory time
  • Overtime is not considered base salary
  • Uniform allowances, car allowances or other fringe type benefit payments

Compensation for EORP Members

What is included as pensionable compensation

What is NOT included as pensionable compensation

  • Gross Salary
  • Lump sum payments of accrued unused vacation time
  • Lump sum payments of accrued unused sick time
  • Lump sum payments of accrued unused compensatory time
  • Uniform allowances, car allowances or other fringe type benefit payments

Pensionable Compensation Limits

The legislature has set limits to the amount of compensation that is considered “pensionable compensation.”  For all tier 1 and 2 members, the compensation limit mirrors the limits set for 401(a) plans by the Internal Revenue Service.  For 2019, the compensation limit is $280,000.  Once a Tier 1 or 2 member reaches $280,000 in pensionable wages, both employee and employer contributions (including legacy contributions) cease for the rest of the year.  In accordance with statute, the compensation limit is monitored on a fiscal year basis.

For Public Safety Tier 3 members, the compensation limit in 2019 is $110,000, per A.R.S. §38-843.04.  The limit applies to both Tier 3 DB members and DC members.  Once a Tier 3 Public Safety member reaches $110,000 in pensionable compensation, all employee and employer contributions cease for the rest of the year.

For Tier 3 corrections officers, the compensation limit in 2019 is $70,000, per A.R.S. §38-895.01.  The limit applies to both Tier 3 DB members and DC members.  Once a Tier 3 corrections officer reaches $70,000 in pensionable compensation, all employee and employer contributions cease for the rest of the year.

For both Public Safety and CORP, the limit will be adjusted every 3 years based on the average change in a specific wage index.  The compensation limit for Tier 3 members is monitored on a calendar year basis, not a fiscal year basis, based on pay period ending dates that fall within that calendar year.

Once a member reaches the pensionable compensation limit, our system will no longer allow you to submit contributions for the rest of the year.  Please use the demographic tool to change the member's status to "Compensation Limit Reached" so that the member will continue to accrue credited service, even though they are not contributing to the plan.  The nonpayment reason code is "CL".