Contribution Reporting

Payroll Submission

The new Employer Portal is now open and available to all employers!  The link for the new Employer Portal is https://members.psprs.com.  The portal is used to submit your contribution files to PSPRS.  Employers can also look up new members to determine tiers and contribution rates, and can use the Portal to notify PSPRS when a new employee is hired or when an existing employee 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.

Contribution Reporting

Employers who participate in our Plans are required by law to enroll and report pensionable wages on all eligible employees.  Accurate reporting of member contributions is critical to ensure that your members receive proper credited service, as well as establish appropriate salary information in determining their future pension benefit.  Employer payroll departments are required to calculate and withhold contributions on member’s pensionable wages.  Both employee and employer contributions must be reported using our Employer Payroll Portal.  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.

Contribution Rates by Plan - PSPRS, CORP or EORP

Contribution rates for employee and employers are either established by statute and/or may be actuarially determined each fiscal year, which begins each July 1st.  In order to properly report wages and withhold contributions, employers and local boards will need to determine an employee's Membership Tier by Plan (PSPRS, CORP or EORP) and the employer will also need to Determine the Pensionable Compensation (see table below).  To view the funding levels and contribution rates by Plan, see the Actuarial Valuations page.

PSPRS Membership Tiers

Tier 1 Members

DB Plan Only

Tier 2 Members¹

DB Plan + DC Plan (hybrid) for Non-Social Security positons

Tier 3 Members¹

DB Plan + DC Plan (hybrid) for Non-Social Security positons

Hired into a PSPRS position before January 1, 2012

Hired into a PSPRS position on/after January 1, 2012

Hired into a PSPRS position on/after July 1, 2017

¹Pension Reform under SB1428 (2016)

For an outline of the differences between the membership tiers, benefit eligibility, options, and other System-related information, see PSPRS Matrix of Plan Provisions.  This outline does not apply to the CORP or EORP membership.

PSPRS Tier 1, 2 and 3 Employee and Employer Contribution Rate Spreadsheet

  • PSPRS (Tier 1, 2 and 3 Employee and Employer Rates for Fiscal Year 2018/19)

PSPRS Tier 1 Employee Contribution Rates for July 1, 2018 to June 30, 2019 (FY 2018/19)

Membership Date prior to 7/20/2011

DB Plan Only

Membership Date on or after 7/20/2011 through December 31, 2011

DB Plan Only

 7.65%¹

 11.65%¹

PSPRS Tier 2 Employee Contribution Rates for July 1, 2018 to June 30, 2019 (FY 2018/19)

DB Plan Only

DB Plan + DC Plan (hybrid) for Non-Social Security positons

11.65%

14.65% (11.65% DB + 3.0% DC)


PSPRS Employee and Employer Historical Contribution Rates

  • PSPRS (Tier 3 Employee Rates for Fiscal Year 2017/18)
  • PSPRS (Tier 1, 2 and 3 Employer Rates for Fiscal Year 2017/18)
  • PSPRS (Tier 3 Employer Rates for Fiscal Year 2016/17)

¹PSPRS Tier 1  Employee Contribution Rate Changes

As a result of 2011 S.B. 1609, employee contribution rates were gradually increased starting in FY 2011/2012 from 7.65% up to 11.65% until approximately April 2017. However, as a result of subsequent court rulings, employee contribution rates were rolled back to 7.65% for employees whose PSPRS membership date is prior to July 20, 2011. For Tier 1 Members with a membership date on or after July 20, 2011 and through December 31, 2011, the employee contribution rate will remain based on the Tier 2 Membership since these members became a member after the effective date of the legislation pursuant to SB1609 (2011).  For Tier 1 Members that qualified, the excess contributions, plus interest, have been returned to the employers and will need to be issued back to the employees from the employers. 

CORP Membership Tiers

Tier 1 Members

DB Plan Only

Tier 2 Members

DB Plan Only

Tier 3 Members²

DB and DC Plans

Hired into a CORP position before January 1, 2012

Hired into a CORP position on/after January 1, 2012

Hired into a CORP position on/after July 1, 2018

²Pension Reform under SB1442 (2017)

For an outline of the differences between the membership tiers, benefit eligibility, options, and other System-related information, see CORP Matrix of Plan Provisions.  This outline does not apply to the PSPRS or EORP membership.

CORP Employee Contribution Rates for July 1, 2018 to June 30, 2019 (FY 2018/19)

Tier 1 and 2 Members

DB Plan Only

Tier 3 Members

DB and DC Plans

Non-dispatcher 8.41%

 Dispatcher 7.96%

All Correction/Detention contribute to the DC Plan:  Contributions begin upon hire date; complete Membership Form provided by your Employer.

Probation/Surveillance that elect DC Plan:  Make election within first 90 days; see New Members Page under CORP.

Defined Contribution (DC) Plan:  An election amount by the member from 5% to as much as the IRS limit; default rate is 7.0%.  All members in the DC Plan will also pay 0.7% to the DC disability plan.

Probation/Surveillance that elect DB Plan:  Make election within first 90 days; see New Members Page under CORP.

Defined Benefit (DB) Plan:  Rates may change each fiscal year. The rate for FY 2018/19 is 9.90%.

CORP Employer Contribution Rates

  • CORP (Fiscal Year 2018/19)
  • CORP (Fiscal Year 2017/18)
  • CORP (Fiscal Year 2016/17)


EORP Membership Tiers

Tier 1 Members

DB Plan Only

Tier 2 Members

DB Plan Only

Tier 3 Members

DC Plan (EODCRS) Only

Hired into an EORP position before January 1, 2012

Hired into an EORP position on/after January 1, 2012

Newly appointed or elected officials on/after January  1, 2014

EORP Employee Contribution Rates for July 1, 2018 to June 30, 2019 (FY 2018/19)

Tier 1 Members³

DB Plan Only

Tier 2 Members

DB Plan Only

Tier 3 Members

DC Plan (EODCRS) Only

7.0% for those hired before July 20, 2011³

 
13.0% for those hired on or after July 20, 2011³

13.0%

EODCRS Disability .125%

EODCRS Contribution 8%

For additional rates (including employer requirements) and Retirement Path information, see EODCRS

³EORP Employee Contribution Rate Changes

As a result of SB 1609 (2011), employee contribution rates were gradually increased starting in FY 2011/2012 from 7% up to 13% until approximately April 2017. However, as a result of subsequent court rulings, employee contribution rates were rolled back to 7% for the Tier 1 Members For, Tier 1 Members with a membership date on or after July 20, 2011 and through December 31, 2011, the employee contribution rate will remain based on the Tier 2 Membership since these members became a member after the effective date of the legislation pursuant to SB1609 (2011).  For Tier 1 Members that qualified, the excess contributions, plus interest, have been returned to the employers and will need to be issued back to the employees from the employers.  

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 the result of combining the amortized unfunded liabilities 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 ReportFor 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
  • 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 2018, the compensation limit is $275,000.  Once a Tier 1 or 2 member reaches $275,000 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 2018 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 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. 

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 service, even though they are not contributing to the plan.  The nonpayment reason code is "CL".