Several bills have been introduced in 2018 that would affect PSPRS members and employers. Below is a synopsis of four of those bills. Please click on the link found below the synopsis to view a complete list of proposed legislation.
HB 2097: PENSION FUNDING POLICIES--EMPLOYERS
This bill would require each governing body of a PSPRS employer to annually adopt a pension funding policy that includes a list of specific funding objectives, including how to maintain adequate assets to fund benefits payable under the PSPRS and defining the governing body's funded ratio target under the PSPRS. The governing body would also be required to post the pension funding policy on its public website.
NOTE: Signed into law.
For the Elected Officials' Retirement Plan, each retired member or survivor of a retired member would be eligible to receive a compounding cost-of-living adjustment in the base benefit based on the average annual percentage change in the metropolitan Phoenix-Mesa consumer price index, with the immediately preceding year as the base year for making the determination, up to a maximum of two percent of the retired member's or survivor's base benefit annually. Repeals statutes governing EORP benefit increases. Conditionally enacted on the state Constitution being amended by the voters at the 2018 general election.
NOTE: Signed into law.
HB 2357: EORP EMPLOYER CONTRIBUTIONS
Beginning July 1, 2018, each EORP employer would be required to make contributions on a level percent of compensation basis for all member employees sufficient to meet both the normal cost plus the actuarially determined amount required to amortize the unfunded accrued liability over a closed period of 20-30 years. In any fiscal year, an employer's contribution to EORP in combination with member contributions could not be less than the actuarially determined normal cost for that fiscal year.
SB 1251: PSPRS & CORP MODIFICATIONS
This bill includes various changes relating to PSPRS and CORP. For the purpose of the PSPRS Defined Contribution Retirement Plan, a "participant" is permitted to make a rollover contribution from a "qualified plan" or an "IRA" (both defined) that must be deposited in a separate rollover account and made immediately available for the participant to either withdraw all or any portion of the lump sum deposit or directly transfer all or any portion of the lump sum deposit to an eligible retirement plan. If a participant in the PSPRS Defined Contribution Retirement Plan is subsequently covered by the federal old age and survivors insurance system, the participant and his/her employer cannot make any contributions on his/her behalf during the period s/he is covered by the federal old age and survivors insurance system. Retroactive to January 1, 2018, the deadline for an Indian tribe to opt out of the public safety employer risk pool is extended one year to December 31, 2018. If an employee hired on or after July 1, 2018 who is eligible to participate in CORP or PSPRS depending on the employee's election is killed in the line of duty or dies from injuries suffered in the line of duty during the first 90 days of employment, the employee is considered as having been enrolled in
To view proposed and enacted legislation from current and previous sessions, click here.
Information regarding current Arizona legislative session activity, or to learn more about Arizona’s legislative process, please visit the Arizona State Legislature website at http://www.azleg.gov/. This site provides detailed information such as committee schedules, live proceedings of hearings and State House or Senate floor sessions.
The following statutes are not an official version of the Arizona Revised Statutes. If there are any differences or discrepancies, the official version will prevail.
Summary of Plan Provisions
The Administrative Office of the PSPRS provides general benefit information for members in the PSPRS, CORP, and the EORP. If there are any differences or discrepancies, the official version of the Arizona Revised Statutes will prevail.
Click here for EODCRS information.