PSPRS Defined Contribution Plans
PSPRS manages several defined contribution plans that are both included in member benefits and available as optional investment vehicles to help members save for retirement.
These plans cover certain public safety members who receive “hybrid” benefits in which they contribute towards a pension and a 401(a) defined contribution account because they do not contribute to Social Security through their employer. New public safety members and probation/surveillance officers hired by the courts can also choose defined contribution benefits instead of a pension, while 401(a) benefits are required for new corrections and detention officers along with new elected officials and members of the judiciary.
The defined contribution plans managed by PSPRS allow members to contribute on a pre-tax basis, while members also benefit from diverse investment options, including default target-date retirement funds, and low administrative fees that may be waived entirely.
The benefit available upon retirement is determined by both contributions and investment performance of the funds chosen by participants. Defined contribution plans are a proven wealth and retirement security building tool, but participants bear the risk of market volatility and economic conditions.
These plans are managed by the PSPRS Defined Contribution Committee, which is made up of active and retired members of the public safety, corrections and elected officials plans.
The committee and the PSPRS Board of Trustees selects vendors through a competitive bidding process. Nationwide Retirement Solutions is the plan recordkeeper while SageView Advisory Group serves as the committee consultant. Public Safety Financial/Galloway provides free member benefit education. PSPRS does not endorse firms for asset management services.
Employers are encouraged to advise PSPRS-plan members to consult with tax professionals to avoid exceeding IRS annual contribution limits to defined contribution retirement plans.
Below is a table of contents to assist employers in understanding PSPRS-managed defined contribution plans:
TABLE OF CONTENTS
Public Safety Personnel Defined Contribution Retirement Plan (PSPDCRP)
The PSPDCRP is a 401(a) retirement plan funded through mandatory employer and pre-tax member contributions for PSPRS and CORP participants:
Tier | Public Safety | Hire Date | Hybrid | Plan Eligibility* |
Tier 1 | DROP participants and/or 2-year extension | On or prior to Jan. 1, 2012 | No | DB (DC DROP balances only) |
Tier 2 |
| Jan. 1, 2012 – Jun.30, 2017 | Yes | DB+DC |
Tier 3 | On or after July 1, 2017 | Yes | DB+DC | |
No | DC-only |
*Please check your Social Security Section 218 agreement regarding participation or coverage
Tier | CORP | Hire Date | Hybrid | Plan Eligibility |
Tier 1 & 2 | Reverse DROP | On or prior Jun. 30, 2018 | No | DC |
Tier 3 | Corrections/Detention | On or after July 1, 2018 | No | DC-only |
Probation & Surveillance | No | DC-only | ||
Probation & Surveillance Reverse DROP | No | DC |
At separation of service, the PSPDCRP may be used by all public safety, corrections and elected official retirees to complete rollovers from workplace and personal plans such as (401(a), 401(k), 403(b), 457 and non-Roth IRAs.
For additional information, members can review the AZ PSPDCRP Plan Overview and the PSPRS Summary of Plan Provisions or the CORP Summary of Plan Provisions.
Elected Officials Defined Contribution Retirement System (EODCRS)
The EODCRS is a 401(a) funded through mandatory employer and pre-tax member contributions for the following participants:
- Appointed, elected or re-elected officials hired after January 1, 2014, who do not have current or inactive membership in PSPRS-managed pension plans or the Arizona State Retirement System.
- Retirees of PSPRS-plans and the Arizona State Retirement System who return to work in elected or appointed office may request EODCRS participation from their employer.
For additional information, members can review the AZ EODCRS Plan Overview and the EODCRS Summary of Plan Provisions.
Supplemental 401(a) retirement plan
The supplemental 401(a) retirement plan allows members of all three plans to generate additional retirement income. Many employers offer the 401(a) plan to members to take advantage of the plan’s low administrative expenses and investment options.
Members’ elected contribution rates to the 401(a) supplemental plan are irrevocable while with their current employer. Contributions to 401(a) accounts can be higher than contributions to 457 plans under IRS limits.
Employers may choose but are not required to match member contributions, which are made on a pre-tax basis. Members may incur fees and taxes should they choose to withdraw funds early. Employer contributions do not count towards the IRS limits on annual participant contributions.
457 retirement plan
The 457 retirement plan allows members of all three plans to generate additional retirement income. Many employers offer the 457 plan to members to take advantage of the plan’s low administrative expenses and investment options.
Members may change their contribution amounts, which may be made on a pre-tax or a post-tax Roth-type basis, or stop contributing at any time. Once a member leaves service, or retires, there are no penalties for early withdrawals from 457 plans under IRS guidelines.
Employers may elect but are not required to provide matching contributions to member 457 plan contributions. Both member and employer contributions to 457 plans count towards annual participant contribution limits set by the IRS. Some employers elect to provide matching contributions to the supplemental 401a plan only, rather than contributing towards members’ 457 plan contribution limits set by the IRS.
Nationwide Retirement Solutions employer enrollment
Employers can participate in all four PSPRS DC plans – the PSPDCRP, EODCRS, Supplemental 401(a), and 457 – once enrolled with Nationwide Retirement Solutions. Employers must read the Nationwide SecurePay notice and complete the NRS packet, which includes the Employers Security Administrator Request Form and Employer Data Sheet, to complete their enrollment. Completed packets may be returned by:
- Fax: 1(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 questions, contact NRS at 1(602) 266-2733, or 1(888) 224-1011.
- For payroll submission questions, contact NRS at 1(877) 496-1630, select option 3.
Nationwide Retirement Solutions member enrollment
The method for new members to enroll to create defined contribution retirement accounts with Nationwide Retirement Solutions varies depending on their type of service.
New public safety and corrections members have 90 days from their date of hire to make benefit elections and in most circumstances these elections are irrevocable. Membership and defined benefit contributions begin immediately for members of the EODCRS.
For more information on new member benefits and benefit elections please visit the new members pages below:
- Public Safety
- Corrections/detention officers
- Corrections – probation/surveillance Administrative Office of the Courts
- Elected officials
New PSPRS-managed defined contribution plan members enroll via the links below:
Public Safety Tier 3 “Hybrid” | Public Safety Tier 3 DC Only | CORP Tier 3 AOC Probation & Surveillance | CORP Tier 3 Corrections & Detention | Elected Officials & Judiciary |