Frequently Asked Questions

1. Are dispatchers automatically placed in the Corrections Officer Retirement Plan?

No. An employer must decide if they want to cover their dispatchers in the Plan and then enter into an agreement with the Fund Manager.

2. What is the definition of a "full-time dispatcher"?

The legislation did not define the term "full-time dispatcher". Since the Corrections Officer Retirement Plan (CORP) is created along the lines of the Public Safety Personnel Retirement System (PSPRS), the various local boards would determine eligibility for membership in the Plan. Since the boards do not exist at this time, management would have to determine whom they want to cover under this special retirement plan. The employer’s intent would be conveyed to the local board since the employer has control over three of the five local board members. We would expect that "full-time" would be a person who works 40 hours per week and that the definition would apply to all dispatchers. Since the eligibility for dispatchers coming into the CORP was related to the employer of an eligible group under the PSPRS, i.e. police or firefighters, we believe that the term dispatchers is limited to police or fire dispatchers.

3. Would a supervisor or communications coordinator that supervises or coordinates dispatchers be included as an eligible position?

Again, it would be up to the local board to set forth the criteria. Generally, these positions should be included if the promotional scheme envisions that a dispatcher could promote into these positions. You would not want to exclude a position from the normal promotional pattern since this would create a hardship to the employees.

4. Would all employees in eligible positions be required to be members in the CORP?

Yes, if a joinder agreement was signed. There is a provision in the law to allow a member at the initial joinder to request not to be a member of the Plan. Historically, we have only allowed someone not to come in at the time of joinder if they can show a financial detriment. The only financial detriment that we recognize however, is if the member has split service between different retirement systems. This would occur if the employee had non-dispatcher time or dispatcher time with another employer.

5. What is the average contribution rate that employers contribute to the CORP retirement Plan?

The average contribution rate for employers in the CORP is misleading since the rate is low due to the Plan being over funded. Under the 25-year plan, the normal cost for the employer in the CORP is 4.9% of salary. However, our actuaries have not provided us with the normal cost after taking into account the recent legislative enhancements. We project that these changes will increase the employer cost by about 1%. Employers coming into the Plan will incur unfunded liability to cover past service for dispatchers with that employer. Therefore, employers could expect to pay more than the normal cost until this unfunded liability is paid off.

6. What is the employee contribution rate?

The employee contribution rate is 8.5% of salary paid on a pre-tax basis.

7. Would previous service in an eligible dispatcher position with the same employer transfer to CORP? If so, what is the transfer process?

All employment with the employer in the covered position, i.e. full-time dispatcher would be covered under the CORP. The value of this time under the other retirement system would be transferred to the CORP to help pay for part of the unfunded liability.

8. Would previous service in another position with the same employer transfer to CORP? If so, what is the transfer process?

No. Neither would previous employment as a full-time dispatcher with another employer transfer at the time of joining. An employee could independently transfer this time to the Plan but would either have to pay extra monies in order to get all the time transferred or take a reduced transfer of time.

9. What is included in the CORP retirement applicable compensation for calculation of required contributions and final average compensation calculation, i.e. base salary, overtime, sick leave payouts, vacation payouts, comp time payouts, etc.?

Base salary, shift differential pay and holiday pay paid on a regular basis. No payoffs or overtime is included.

10. What are the CORP provisions for survivor benefits?

The surviving spouse of a member who dies in service or after retirement is eligible for benefits as follows:

Surviving spouse of retired member;  Four-fifths of retired member's pension at time of death. Requires two years of marriage at time of death. Terminates on death of surviving spouse. (A.R.S. §38-887)

Surviving spouse of a non-retired member; 40% of deceased member's average monthly salary. Requires two years of marriage at time of death. Terminates on death of surviving spouse. (A.R.S. §38-888)

11. What are the CORP provisions for disability retirements?

CORP has two disability retirements, see A.R.S. section 38-881, paragraphs 1 and 22. The accidental disability pension really doesn’t fit a dispatcher and the total and permanent disability is very difficult to obtain.

12. Does the Plan have a long-term disability provision?

No. An employer whose employees are covered under the Arizona State Retirement System are covered under an LTD program. By going to the CORP, these employees would forego this benefit and the employer would need to arrange independent coverage for dispatchers moving to the CORP.

13. Would a local board be required for each department, i.e. Police or Fire?

Yes. The employer would also be required to budget for and staff the local board.

14. Is the decision to join irrevocable?

Yes.