February 7, 2017
Public Safety Personnel Retirement System
State of Arizona
February 7, 2017
Contact: Christian Palmer
Phone: 602-296-3736
PSPRS releases pension reform campaign schedule
Education campaign for employers and local board
ARIZONA – The Public Safety Personnel Retirement System released its monthly schedule for a campaign to educate employers and local boards of the requirements associated with implementing pension reforms that become effective July 1, 2017.
The reforms include a third public safety employee tier as well as the replacement of the long-standing permanent benefit increase (PBI) for retirees with an annual cost-of-living-adjustment based on inflationary increases as identified by the U.S. Department of Labor.
The law changes also create a logistical requirement that existing systems and processes in place for reporting payroll and employee/employer contributions be upgraded to handle additional demands. Such changes are a vital component of the education campaign, as is informing employers and local boards about benefit changes for employees hired after June 30, 2017. These changes include the availability of a mixed defined benefit and defined contribution retirement plan, as well as a 401k-style that requires a 9 percent employer matching contribution.
Details of the campaign can be viewed below, but PSPRS reminds employers, local boards and members that the education campaign is subject to change as necessary. Please check the PSPRS website (www.psprs.com) for the most up-to-date version of this plan. A downloadable version is available at the bottom of this communication.
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January, 2017
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Webinar—Overview of Senate Bill 1428 1/10/17
Webinar—Tier 2 Defined Contribution Opt-Out Process 1/31/17
Email Newsletter to Local Boards and Employer
• Overview of SB 1428 Provisions
• Tier 2 Defined Contribution Opt-Out Process
• Upcoming educational opportunities
• Cost of Living Adjustments 1/26/17
Email to Employers
• New Payroll File Format and Data Requirements 1/31/17
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February, 2017
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Outreach Meetings—Largest Employers, Member Organizations
• Provide Updates on Progress of 1428
• Provide Updates on Tier 2 DC Opt-Out Process
• Garner Feedback on Outstanding Issues
Educational Video—Broad Reform Overview
• Tier 3 Benefit Provisions
• DB vs. DC vs. Hybrid Plans
• COLA
Resources for Tier 2 Members—Opt-Out Process
Email Newsletter to Local Boards and Employers
• Tier 3 Defined Benefit vs. Defined Contribution Plans
• Hybrid Plan
• Announce Local Board/Employer Training Events Offered Across Arizona
• Announce Employer and Employee Contribution Rates Effective 7/1/17
Website—Create a “Toolkit” Page Dedicated to SB 1428 Information
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March, 2017
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Local Board & Employer Training Session—Pima Community College 3/30/17
• New Plan Provisions
• PSPRS Operational Changes (enrollment, payroll, payments, etc.)
• Tier 2 Opt-Out Details
• DB/DC/Hybrid Differences
• Tools for Educating Employees
Educational Video—Tier 2 Opt-Out Process
Brochure for Tier 3 New Members—Plan Options (DB, DC, Hybrid)
Email Newsletter to Local Boards and Employers
• Tier 3 Defined Benefit vs. Defined Contribution Plans
• Hybrid Plan
• Announce Local Board/Employer Training Events Offered Across Arizona
• Announce Employer and Employee Contribution Rates Effective 7/1/17
Decision Tree Aid—Determining Which Tier a New Member Belongs In
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April, 2017
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Local Board & Employer Training Sessions—Flagstaff
—Burton Barr Library (Phx.) 4/06/17 4/13/17
• New Plan Provisions
• PSPRS Operational Changes (enrollment, payroll, payments, etc.)
• Tier 2 Opt-Out Details
• DB/DC/Hybrid Differences
• Tools for Educating Employees
Email Newsletter to Local Boards and Employers
• Additional Details on Plan Provisions—Tier 3
• Defined Contribution Details (contribution rates, investments, etc.)
• Decision Tree—How to Place New Employees in Proper Tiers
Educational Video—Tier 3 Benefit Provisions
Educational Video—Tier 3 Member Financial Guidance
Webinars (2)—Tier 2 Member Opt-Out Process (for members) TBD
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May, 2017
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Webinar—Employers and Local Boards 5/16/17
• Summary of Local Board Training Sessions
• New Enrollment Processes
• New Payment Processes
• How to Determine Which Tier New Members Belong To
• Online Resources
Enrollment Manual for Employers
Educational Video—Enrollment Procedures and Requirements
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June, 2017
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Member Handbook Updated
Local Board Retirement Instruction Manual Updated
Information Packet for Tier 3 Members
Publish Webpage Dedicated to Tier 3 Members
• Side-by-Side Comparison of Plan Options
• Member Handbook—Plan Provisions
• Videos on Defined Benefit vs. Defined Contribution and Plan Provisions
Update Tier 3 Forms on Website
Webinar—Legislative Update
Pension Reform Education Campaign Schedule (Downloadable)
Thank you for visiting PSPRS Online.
