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Contribution Rates & Reporting

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Employers who participate in our plans are required by law to enroll and report pensionable compensation for all eligible employees based on an employee’s membership tier in each plan – Public Safety, CORP, EORP and EODCRS.  Accurate reporting of contributions is critical to ensure members receive proper credited service, as well as establish appropriate salary information in determining future retirement benefits.

Contribution Rates – Employees and Employers

To locate current employee, employer and alternate contribution rates (ACR):

For a convenient list of all applicable PSPRS-managed plan aggregate employer and member contribution rates please see the following required reporting documents:

Fiscal Year Reporting Documents
2024 – 2025 (pay periods July 1, 2024 to June 30, 2025)  Download PDF
2023 – 2024 (pay periods July 1, 2023 to June 30, 2024)  Download PDF
2022 – 2023 (pay periods July 1, 2022 to June 30, 2023)  Download PDF
2021 – 2022 (pay periods July 1, 2021 to June 30, 2022)  Download PDF
2020 – 2021 (pay periods July 1, 2020 to June 30, 2021)  Download PDF
2019 – 2020 (pay periods July 1, 2019 to June 30, 2020)  Download PDF
2018 – 2019 (pay periods July 1, 2018 to June 30, 2019)  Download PDF

NOTE: Employers may prepay their contributions in order to take advantage of having assets invested all year, or they may make extra payments to pay down their unfunded liabilities. If interested, please contact [email protected].

Public Safety Tier 2 Members – DC Hybrid Rates

Public Safety Tier 2 members who are not covered by Social Security, in addition to their DB plan contributions, will contribute 3% of their pensionable compensation for their entire participation in PSPRS into the DC hybrid plan administered by Nationwide Retirement Solutions.  As an employer, you will be contributing to the DC hybrid plan on behalf of those members and, for a limited period, the contribution rate will be set at 4% based on a tier structure of when the member began participation in PSPRS, and it will then reduce to 3%.

Current Membership (Hire) Date

4% Employer Contribution Rate

3% Employer Contribution Rate

Calendar year 2012 Beginning July 1, 2017 through June 30, 2024 Beginning July 1, 2024
Calendar year 2013 Beginning July 1, 2017 through June 30, 2023 Beginning July 1, 2023
Calendar year 2014 Beginning July 1, 2017 through June 30, 2022 Beginning July 1, 2022
Calendar year 2015 Beginning July 1, 2017 through June 30, 2021 Beginning July 1, 2021
Calendar year 2016 Beginning July 1, 2017 through June 30, 2020 Beginning July 1, 2020
Up to June 30, 2017 Beginning July 1, 2017 through June 30, 2018 Beginning July 1, 2018
On/after July 1, 2017 N/A Beginning with first pay period

Contribution Reporting

Our Employer Payroll Portal is used to submit your contribution files to PSPRS and for employers to perform the employee lookup feature to determine membership tiers, contribution rates, notify PSPRS when a new employee is hired, terminates, goes on a leave, or returns to service. The following “how to” tutorials may be helpful as you enter demographic and contribution information:

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  [email protected]. 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. 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
3010 E. Camelback Rd., Suite 200
Phoenix, AZ 85016-4416

By statute, contribution payments are to be made no later than 10 working days after the end of each employer’s payroll date. Failure to remit payments on a timely basis will result in assessment of penalties and interest as provided by state law. Contributions withheld from member’s paychecks are done on a pre-tax basis.

Nationwide Reporting for Employers of PS, CORP and EODCRS

For employers who are required to pay into Nationwide Retirement Solutions (NRS) on behalf of employees who either elect, or mandated to participate in the Public Safety Personnel Defined Contribution Retirement Plan (PSPDCRP), the payroll (or appropriate) department will need to read the Nationwide SecurePay notice titled “Feeling overwhelmed with payroll processing” and complete the NRS packet, which includes the Employers Security Administrator Request Form and Employer Data Sheet. Upon completion of the packet, return the forms either by:
  • Fax:  (877) 677-4329, attention Automation Technical Support
  • Email:  [email protected], or
  • Mail:  Nationwide, P.O. Box 182797, Columbus, OH  43218

Failure to return the packet in a timely manner may result in delays in processing contributions.

For standard questions, contact NRS at  (602) 266-2733, or  (888) 224-1011.
For payroll submission questions, contact NRS at  (877) 496-1630, option 3.

Nationwide Employee Enrollment Process

PS Tier 3 and CORP Tier 3 AOC Probation and Surveillance Officers: Nationwide enrollment is processed via Members Only portal.

Correction and Detention:  Nationwide enrollment is processed via CORP Plan Enrollment Form.

EODCRS: Employers will need to provide the newly appointed or elected officials (on/after January 1, 2014) who participate in the Elected Officials’ Defined Contribution Retirement System (EODCRS) with a EODCRS Nationwide Enrollment form located in Forms & Resources.

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 meant to help pay the unfunded liability amortization payment, and is calculated by combining the amortized unfunded liability contribution rates 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 Report.  For 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

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
  • Overtime is not considered base salary
  • 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 2023, the compensation limit is $330,000.  Once a tier 1 or 2 member reaches $330,000 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 FY2024 is $140,952, 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 $140,952 in pensionable compensation, all employee and employer contributions cease for the rest of the year.

For tier 3 corrections officers, the compensation limit in FY2024 is $72,947, 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 $72,947 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, based on pay period ending dates that fall within that calendar year.

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