PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
2001 PROPOSED LEGISLATION

May 18, 2001

 The Legislature adjourned sine die on May 10, 2001.  The effective date for non-emergency bills is August 9, 2001

 

Bills marked in green have been passed 

H.B. 2008 County and State park rangers; membership; PSPRS

County park rangers who are certified peace officers and Arizona state park rangers and managers who are certified peace officers would be entitled to become members of the Public Safety Personnel Retirement System. This bill would authorize the appropriate employer to begin the process of having the members of this eligible group to become a member of the PSPRS. For the state, any joinder would require legislative appropriation.

Action: Assigned House Retirement and Government Operations; Approp.; Hearing 1/9/01; Held 1/9/01; Passed 1/16/01; to approp.; passed approp. 3/7/01; Passed House; Ready for Senate; Assigned Senate Finance, approp.; Hearing appropriations 3/27/01; passed; Hearing finance 4/2/01; Passed; Ready for floor action; Senate COW approved 4/26/01; House concurred in Senate amendments 5/1/01, 57-1; Ready for Governor; Signed by Governor 5/7/01, Laws 2001, Chapter 353.

H.B. 2013 Fire fighter cancer insurance; eligibility

This bill would remove the requirement that a fire fighter have at least five years of credited service in the Public Safety Personnel Retirement System before becoming eligible for the benefits under the fire fighter cancer insurance program.

Action: Assigned House Retirement and Government Operations; Hearing 1/9/01; Passed 1/9/01;Passed House 57-0 1/23/01; To Senate; Assigned Senate Government; Hearing 2/5/01; Passed 2/5/01; Senate COW approved 2/21/01; Passed Senate 3/14/01 28-2; Ready for Governor; Signed by Governor 3/19/01,  Laws 2001, Chapter 13.

H.B. 2111 state retirement service credits; transfers

This bill would allow a person who left their retirement contributions on account with the system but who has terminated employment to transfer or buy back service credits from another state retirement system or plan. The transfer or buy back must be in a form so as to not cause either retirement system or plan to incur any unfunded accrued liability.

Action:  Assigned House Retirement and Government Operation approp.; Hearing 1/16/01; Passed 1/16/01; to approp;  Hearing 2/19/01, no action; Hearing 2/19/01 passed approp. 2/19/01; Passed House 2/27/01 60-0; Assigned to Senate Fin.; Hearing 3/12/01; passed 3/12/01; Passed Senate 25-5 4/4/01; Ready for Governor; Filed into law without Governor's signature, 4/17/01, Laws 2001, Chapter 123.

H.B. 2159 state employees; retirees; health insurance

This bill would require the state department of administration for its’ full-time employees and the Arizona state retirement system for its’ group retiree health insurance program in procuring health and accident coverage to only enter into statewide contracts and not contracts on a regional basis.

Action: Assigned House Retirement and Government Operations; finance-insurance; Hearing 1/23/01; Held; Hearing 1/30/01; Held:Hearing 3/6/01, a strike everything amendment on an unrelated topic will be offered at this hearing.  Therefore, we will no longer be following this bill.

H.B. 2164 Retirees; health insurance subsidies
Retroactively effective to July 1, 2001, this proposed bill would increase the maximum monthly subsidy to each eligible retiree and survivor of the PSPRS, CORP, and EORP. The bill as amended provides for the following increase in subsidy:

MEMBER

DEPENDENT

Not Medicare Eligible

Medicare Eligible

All Not Medicare Eligible

All Medicare Eligible

One with Medicare

Public Safety Personnel Retirement System

Current

$82.50

$82.50

$130.00

$130.00

$130.00

Proposed

$150.00

$100.00

$260.00

$170.00

$215.00

Elected Officials' Retirement Plan

Current

$60.00

$60.00

$85.00

$85.00

$85.00

Proposed

$150.00

$100.00

$260.00

$170.00

$215.00

Corrections Officer Retirement Plan

Current

$95.00

$65.00

$175.00

$115.00

$145.00

Proposed

$150.00

$100.00

$260.00

$170.00

$215.00

 

Action: Assigned House Retirement and Government Operations; approp.; Hearing 1/23/01; Held; Hearing; 2/6/01; passed 2/6/01 with amendments, to approp.; Hearing 2/19/01, held; Hearing 2/26/01, passed approp. 2/27/01; Passed House 3/12/01 50-0; ready for Senate; Assigned Senate Finance, approp.; Hearing approriations 3/27/01; passed; Hearing Senate Finance 4/9/01; Passed; Ready for floor action; Passed Senate COW with amendments 4/27/01; Passed Senate 28-1 4/30/01; House refused to concur in Senate Amendments 4/30/01, conference committee created; House adopted conference committee report 5/2/01, 54-0; Senate adopted report 28-2; Ready for Governor; Signed by Governor 5/8/01 Laws 2001, Chapter 383.

H.B. 2169 Supplemental defined contribution plans

Identical to S.B. 1100.  See the summary for S.B. 1100.

Action: Assigned House Retirement and Government Operations; Hearing 1/23/01;Held; Hearing 1/30/01; Passed 1/30/01; Passed House 2/14/01, 57-1; Assigned Senate Finance; Hearing 4/2/01, A strike everything amendment on un unrelated topic is scheduled to be offered.  Therefore, we will no longer be following this bill.

H.B. 2239 PSPRS; fire fighters; asset transfers

Under this bill, a fire district with twenty-five or more fire fighters who elects to enter into the Public Safety Personnel Retirement System may transfer monies from the fire fighters’ relief and pension fund to help pay for the unfunded liability created by joining the Public Safety Personnel Retirement System. This bill is a temporary law that expires December 31, 2002.

Action: Assigned House Retirement and Government Operations; approp.; Hearing 1/23/01; Passed 1/23/01;  

H.B. 2255 state retired employees; health insurance

This proposed bill would increase the maximum monthly subsidy to each eligible retiree and survivor of the PSPRS, CORP, and EORP. The bill leaves the proposed increases as blanks:

MEMBER

DEPENDENT

Not Medicare Eligible

Medicare Eligible

All No Medicare Eligible

All Medicare Eligible

One with Medicare

Public Safety Personnel Retirement System

Current

$82.50

$82.50

$130.00

$130.00

$130.00

Proposed

$

$

$

$

$

Elected Officials' Retirement Plan

Current

$60.00

$60.00

$85.00

$85.00

$85.00

Proposed

$

$

$

$

$

Corrections Officer Retirement Plan

Current

$95.00

$65.00

$175.00

$115.00

$145.00

Proposed

$

$

$

$

$

Action: Assigned House approp.;

H.B. 2333 retirees; health insurance; tax equity

This proposed bill would increase the maximum monthly subsidy to each eligible retiree and survivor of the PSPRS, CORP, and EORP. The bill also provides that if the member does not enroll in the Arizona State Retiree Group Insurance Program or their employer’s retiree insurance program the member would receive the subsidy amount through an increase in their monthly retirement pension.

MEMBER

DEPENDENT

Not Medicare Eligible

Medicare Eligible

All Not Medicare Eligible

All Medicare Eligible

One with Medicare

Public Safety Personnel Retirement System

Current

$82.50

$82.50

$130.00

$130.00

$130.00

Proposed

$110.00

$95.00

$205.00

$145.00

$175.00

Elected Officials' Retirement Plan

Current

$60.00

$60.00

$85.00

$85.00

$85.00

Proposed

$110.00

$95.00

$205.00

$145.00

$175.00

Corrections Officer Retirement Plan

Current

$95.00

$65.00

$175.00

$115.00

$145.00

Proposed

$110.00

$95.00

$205.00

$145.00

$175.00

This bill also would provide that any EORP or PSPRS member who was employed before September 15, 1989 and who retired after October 31, 2000 but before November 1, 2001, would be entitled to receive a tax equity benefit allowance consisting of two per cent of the member’s base benefit retroactive to the date of retirement. This bill would be a permanent fix to the tax equity problem. The tax equity benefit allowance is intended to offset the state income tax that is imposed upon certain Arizona retirees due to the U.S. Supreme Court decision in Davis v Michigan effective retroactive to September 15, 1989 which caused the Arizona state legislature to amend the state income tax scheme for all retirees. Because of the amended legislation, all Arizona residents who are receiving a pension, after the first $2,500 in pension, are subject to state income tax on that pension. Previously, a retiree of the PSPRS or EORP was not subject to state tax on the pension amount received.

Action: Assigned House Retirement and Government Operations, approp.; Hearing 3/6/01 A strike everything amendment will be offered at this hearing on an unrelated topic.  Therefore, we will no longer be following this bill.

H.B. 2334 PSPRS; deferred retirement; twenty years

This bill would amend the eligibility for a member to enter the deferred retirement option plan (DROP). Under the bill, a member with twenty years of credited service could elect to enter the DROP. Currently, the requirement is that the member must have twenty-five years of credited service for DROP eligibility.

Action: Assigned House Retirement and Government Operations, approp.; Hearing 3/6/01 A strike everything amendment will be offered at this hearing on an unrelated topic.  Therefore, we will no longer be following this bill.  But see S.B. 1151.

H.B. 2335 PSPRS; fire districts; private corporations

This bill would allow a fire district to allow paid full-time fire fighters employed by the fire district pursuant to a contract with a corporation to become an eligible group with the Public Safety Personnel Retirement System.

Action: Assigned House Retirement and Government Operations, approp.; Hearing 1/23/01; Held; withdrawn from retirement and gov. op; assigned to mil-vet committee 2/8/01; Hearing 2/16/01, this bill was used as a strike-everything amendment for a subject that is not related to retirement.  We will no longer be following this bill.  

S.B. 1012 Tax equity benefit increase; PSPRS; EORP

Identical to S.B. 1149, see the summary for S.B. 1149.

Action: Assigned Senate Finance; Hearing 1/15/01;Held 1/15/01;

S.B. 1036 PSPRS; deferred retirement option plan

This bill is a technical clean up bill which amends last year’s bill implementing the DROP program that is effective July 1,2001. The bill clarifies that on the date the member elects to participate in DROP, his PSPRS benefits and employee and employer contributions cease. The member’s effective date of participation in DROP would be the first date of the following month. Thus for example, a member could elect to participate in DROP on June 28, 2001 and his effective date of participation in DROP would be July 1, 2001 with his frozen pension amount credited to his account on July 31, 2001. The bill also clarifies the penalties that would accrue if the member decided to continue employment as a police officer or fire fighter with his employer after his designated period in the DROP. Specifically, no interest would be paid, no further pension would be credited to the DROP account, the accumulated monies in the DROP account would not be paid until termination of employment and no credited service would be accrued in the system.

Action: Assigned Senate Finance; Hearing 1/15/01; Passed 1/15/01, to Rules; Ready for floor action; Passed Senate 27-2; ready for House; Assigned House Retirement and Government Operations; Hearing 3/20/01; Passed 3/20/01; Passed House 60-0, 4/3/01; Ready for Governor; Signed by Governor 4/6/01 Laws 2001, Chapter 59.

S.B. 1100 supplemental defined contribution plans

This bill would repeal the defined contribution retirement plan option which requires term-limited state elected officials and exempt state employees to chose either a defined contribution plan (DC plan) or the state’s defined benefit plan (DB plan) at the time of employment. This bill would also repeal the special 5% money purchase plan that only legislative employees are eligible to elect. Both of these plans would be replaced by a supplemental defined contribution plan. Under this supplemental plan, any person who is eligible for one of the four state retirement systems or plans would remain a member of that system or plan but would have the option of contributing further employee monies into a supplemental defined contribution plan. The employee could contribute an amount beginning at one per cent of salary and increase this amount annually in one percent increments as allowed by federal tax laws. Under this bill, an employer could elect to match all or any portion of the employees’ contribution for that employer’s budget cycle. The supplemental defined contribution plan is designed to provide for further retirement savings at the election of the employee.

A DC plan is different from a DB plan in that under a DC plan, contributions are accrued in an individual’s personal account and the person has the responsibility for investing that money. The money on account at the time of retirement under a DC plan is what the person is entitled to as his retirement pension. Under a DB plan, the person does not make investment decisions regarding his contributions but instead is promised a pension based upon his years of service and salary. Under a DB plan, the pension amount is guaranteed, provided that the member meets the retirement eligibility requirements. The major difference between a DC plan and a DB plan is that under a DC plan the investment risk is shifted from the employer to the employee.

Action:  Assigned Senate Finance; Hearing 2/26/01; Passed 2/26/01 with amendments; Passed Senate 3/12/01 18-10; ready for House; Assigned House Retirement & Government Operations, ways & means; Hearing 3/20/01; Held; Hearing 3/27/01; Held; Hearing 4/3/01; Passed; withdrawn from ways & means; Ready for floor action; Passed COW 4/10/01; Passed House 55-0 4/11/01; Ready for Senate action on House amendments; Passed Senate 4/26/01; Ready for Governor; Signed by Governor 5/1/01 Laws 2001, Chapter.280

S.B. 1106 retiree health insurance study committee

This bill would create a legislative study committee on retiree health insurance.  The committee would examine availability of health insurance for retirees throughout the state and premium costs for such insurance.  The committee would also examine the reasons for the premium costs for such coverage.  The committee would make a report to the legislative leadership and the governor by November 1, 2002. 

Action:  Assigned Senate Finance; Hearing 1/29/01; Held;

S.B. 1107 retirees; health insurance; subsidies

Retroactively effective to July, 1 2001, this proposed bill would temporarily increase the maximum monthly subsidy to each eligible retiree and survivor of the PSPRS, CORP, and EORP who live in a nonservice area. A nonservice area would be defined as an area in this state where either the ASRS, the department of administration, if a state employee, or the employee's employer does not offer a health care services organization (HMO) for which the retiree is eligible.  This temporary increase in subsidies for these people would last through June 30, 2003.   

FOR PERSONS LIVING IN A NON SERVICE AREA ONLY:

MEMBER

DEPENDENT

Not Medicare Eligible

Medicare Eligible

All Not Medicare Eligible

All Medicare Eligible

One with Medicare

Public Safety Personnel Retirement System

Current

$82.50

$82.50

$130.00

$130.00

$130.00

Proposed

$300.00

$170.00

$600.00

$350.00

$470.00

Elected Officials' Retirement Plan

Current

$60.00

$60.00

$85.00

$85.00

$85.00

Proposed

$300.00

$170.00

$600.00

$350.00

$470.00

Corrections Officer Retirement Plan

Current

$95.00

$65.00

$175.00

$115.00

$145.00

Proposed

$300.00

$170.00

$600.00

$350.00

$470.00

Action:  Assigned Senate Finance; approp.; Hearing 2/12/01; Passed 2/12/01; Hearing approp. 3/6/01; passed approp. 3/12/01; Passed Senate 3/15/01 25-4; Ready for House; Assigned House Financial Institutions & Insurance, approp.; Hearing 4/4/01;  Passed with amendments; Hearing approp. 4/18/01; Passed 4/18/01; ready for rules; Ready for floor action; Passed House 4/25/01 54-2; Ready for Senate action on House amendments; Senate concurred in House Amendments, 5/1/01; Ready for Governor; Signed by Governor 5/7/01, Laws 2001, Chapter 376..

S.B. 1149 Retirement; PSPRS, EORP; Tax equity

This bill would provide that any EORP or PSPRS member who was employed before September 15, 1989 and who retired after October 31, 2000 but before November 1, 2001,  would be entitled to receive a tax equity benefit allowance consisting of two per cent of the member’s base benefit retroactive to the date of retirement. The tax equity benefit allowance is intended to offset the state income tax that is imposed upon certain Arizona retirees due to the U.S. Supreme Court decision in Davis v Michigan effective retroactive to September 15, 1989 which caused the Arizona state legislature to amend the state income tax scheme for all retirees. Because of the amended legislation, all Arizona residents who are receiving a pension, after the first $2,500 in pension, are subject to state income tax on that pension. Previously, a retiree of the PSPRS or EORP was not subject to state tax on the pension amount received.

Action:  Assigned Senate Finance; Hearing 1/22/01; Passed 1/22/01; Passed Senate 20-9; ready for House; Assigned to House Retirement & Government Operations; Hearing 4/3/01; Passed; 4/12/01 additionally assigned to House appropriations; Hearing approp. 4/18/01; Passed 4/18/01; ready for floor action; Passed House COW 4/23/01; Passed House 4/24/01 49-5; Ready for Governor; Signed by Governor 5/1/01, Laws 2001, Chapter 282.

S.B. 1150 PSPRS; retirees; health insurance subsidy

This proposed bill would increase the maximum monthly subsidy to each eligible retiree and survivor of the  CORP in an amount that was left blank in the introduced bill.

Action:  Assigned Senate Finance; Hearing 1/22/01; Held;

S.B. 1151 PSPRS; deferred retirement; twenty years

This bill would amend the eligibility for a member to enter the deferred retirement option plan (DROP). Under the bill, a member with twenty years of credited service could elect to enter the DROP. Currently, the requirement is that the member must have twenty-five years of credited service for DROP eligibility.

Action:  Assigned Senate Finance; Hearing 1/22/01; Passed 1/22/01; Senate COW failed to approve 14-14; On remand, Passed COW 17-8; Passed Senate 2/7/01 24-6; ready for House; Assigned House Retirement and Government Operations; approp.; Hearing 3/27/01; Passed with amendment delaying implementation to 7/1/04; Hearing approp. 4/18/01; Passed 4/18/01; ready for rules; Passed House COW 4/24/01 with floor amendment removing delayed implementation; Passed House 4/25/01 58-0; Ready for Senate action on House amendments; Senate concurred in House Amendments 5/1/01; Ready for Governor; Signed by Governor 5/7/01, Laws 2001, Chapter 349.  Notwithstanding the provisions of the bill, this bill will become effective on August 9, 2001.  

S.B. 1184 public retirees; health insurance; subsidies

This bill would permit a retiree under either the Arizona State Retirement System, the Public Safety Personnel Retirement System, the Corrections Officer Retirement Plan or the Elected Officials' Retirement Plan to receive a temporary increase in the member's pension equal to the health insurance subsidy currently provided by law.  This provision would be effective January 1, 2002 and would expire December 31, 2006.  

Action:  Assigned to Senate Finance;

S.B. 1211 PSPRS; fire fighters; asset transfer;

Under this bill, a fire district with twenty-five or more fire fighters who elects to enter into the Public Safety Personnel Retirement System may transfer monies from the fire fighters’ relief and pension fund to help pay for the unfunded liability created by joining the Public Safety Personnel Retirement System. This bill is a temporary law that expires December 31, 2006.

Action: Assigned Senate Finance; Hearing 1/29/01; Passed 1/29/01; Passed Senate 2/5/01 29-0; ready for House; Assigned House Retirement & Government Operations; Hearing 3/20/01; Passed 3/20/01; Passed House 60-0, 4/2/01; Ready for Governor; Signed by Governor 4/11/01 Chapter 97.

S.B. 1230 defined contribution plan: employee contributions

Under this bill, exempt state officers and elected officials who are subject to term limits who elect to go into the defined contribution plan in lieu of their defined benefit plan could contribute more to the DC plan.  The bill allows beginning July 1, 2002 that such an employee could contribute up to the maximum employee contribution allowed by federal law.

Action:  Assigned to Senate Finance; Hearing 1/29/01; Held;

S.B. 1295 retirement benefits; defined contribution supplement

Nearly identical to S.B. 1100.  See the summary for S.B. 1100.

Action:  Assigned to Senate Finance; Hearing 2/26/01; Passed 2/26/01 with amendments; Senate COW approved 3/12/01; Passed Senate 3/14/01 24-5; Ready for House; Assigned House Retirement & Government Operations; Hearing 3/27/01; Passed; Ready for floor action; Passed House 4/26/01 56-0; Ready for Senate action on House amendments; Senate refused to concur in House Amendments 4/27/01, conference committee created; Conference committee adopted report which amended normal retirement for full-time dispatchers in the CORP to be 25 years; House adopted conference committee report 5/3/01 52-0, Senate adopted report 20-7; Ready for Governor; Signed by Governor 5/8/01 Laws 2001, Chapter 380.

S.B. 1399 supplemental defined contribution plans

Identical to S.B. 1100.  See the summary for S.B. 1100.

Action:  Assigned to Senate Finance; Hearing 3/5/01  A strike everything amendment on an unrelated topic will be offered at this hearing.  Therefore, we will no longer be following this bill.

S.B. 1482 schools; teacher investigations

Among other things, this bill would allow certified peace officers employed by the board of education to become members of the Public Safety Personnel Retirement System.

Action: Assigned to Senate education; Hearing 2/22/01; Held; Hearing 3/1/01; passed; Passed Senate 3/14/01 27-3; ready for House; Assigned House education; Hearing 4/2/01; Passed with amendment to delete ability to enter the PSPRS, therefore, we will no longer be following this bill.

S.B. 1567 health insurance subsidies; public retirees

This proposed bill would increase the maximum monthly subsidy to each eligible retiree and survivor of the PSPRS, CORP, and EORP as follows:

MEMBER

DEPENDENT

Not Medicare Eligible

Medicare Eligible

All Not Medicare Eligible

All Medicare Eligible

One with Medicare

Public Safety Personnel Retirement System

Current

$82.50

$82.50

$130.00

$130.00

$130.00

Proposed

$125.00

$95.00

$235.00

$175.00

$205.00

Elected Officials' Retirement Plan

Current

$60.00

$60.00

$85.00

$85.00

$85.00

Proposed

$125.00

$95.00

$235.00

$175.00

$205.00

Corrections Officer Retirement Plan

Current

$95.00

$65.00

$175.00

$115.00

$145.00

Proposed

$125.00

$95.00

$235.00

$175.00

$205.00

FOR PERSONS LIVING IN A NON SERVICE AREA ONLY (until December 31, 2006): A non service area is defined as an area in this state in which the Arizona State Retirement  System or the state Department of Administration or the member's employer does not have a managed care program for which the retired member or survivor is eligible.

MEMBER

DEPENDENT

Not Medicare Eligible

Medicare Eligible

All Not Medicare Eligible

All Medicare Eligible

One with Medicare

Public Safety Personnel Retirement System

Current

$82.50

$82.50

$130.00

$130.00

$130.00

Proposed

$300.00

$175.00

$600.00

$350.00

$470.00

Elected Officials' Retirement Plan

Current

$60.00

$60.00

$85.00

$85.00

$85.00

Proposed

$300.00

$170.00

$600.00

$350.00

$470.00

Corrections Officer Retirement Plan

Current

$95.00

$65.00

$175.00

$115.00

$145.00

Proposed

$300.00

$170.00

$600.00

$350.00