Tier 3

Membership Date

On or after July 1, 2018

Plan Type

Defined benefits (DB) or DC plan (details for DC plan users in column to the right)

Defined contribution (DC) Plan

Wage Index

Pensionable income limit in 2025 is $83,435, per A.R.S. §38-895.01; set every three years

Average Monthly Salary

Determined by*

Highest 5 consecutive years within the last 10 years of credited service

Not Applicable

Normal Retirement

(age and service)

10 years of service and age 55 (need not be mutually attained)

All withdrawals subject to income tax, IRS rules. Member fully vested in employer contributions after 3 years of service

Multipliers

(80% max)

Age 55: 10 to <15 years: 1.25%

15 to <20 years: 1.50%

20 to <22 years: 1.75%

22 to <25 years: 2.00%

25+ years: 2.25% (max of 80%)

Not Applicable

Calculations

Average monthly salary x credited service x multiplier
= gross monthly pension

Not Applicable

Disability Benefits

All types of disability (Accidental, Total & Permanent, and Ordinary)

Disability benefits are limited to workplace related injuries (Accidental, Total & Permanent)

Disability Calculation

Varies depending upon type of disability, credited service and statute calculation

Based upon Tier 3 DB member benefit but reduced by amount equal to the monthly annuitized value of (DC) account

Line of Duty Death

Survivor benefits for eligible spouse or eligible children. Absent eligible spouse or children, the balance of member’s contributions, if any, are paid to named beneficiaries on file

Survivor benefits for eligible spouse or eligible children. Actuarially offset by balance of member’s DC account. Absent eligible spouse or children, beneficiaries receive balance of the DC account

Reverse DROP

25 years of credited service

Not Applicable

Post-Retirement Survivor Benefits

If married for at least 2 consecutive years at the time of the retiree’s death

Not Applicable

Post-Retirement Survivor Calculation

80% of the primary retiree’s gross benefit prior to death

Not Applicable

Cancer Insurance Program

Members may elect to pay an annual premium for PSPRS Cancer Insurance Program 
coverage if their employer participates in the program. The program provides eligible retired officers with payments for cancer diagnoses and reimbursements for treatment-related expenses.