Public Safety Personnel Retirement System
State of Arizona
NEWS RELEASE
Contact: Christian Palmer
Phone: 602-296-3736
PSPRS Defined Contribution Plans Surpass $1 Billion in Assets
Milestone highlights importance of defined contribution plans for system members
ARIZONA – The Public Safety Personnel Retirement System (PSPRS) is proud to announce that its defined contribution (DC) plans have achieved a significant milestone, exceeding $1 billion in assets as of the end of September. This highlight underscores the expanding role of DC plans in securing the financial futures of public safety and corrections members, elected officials and judges.
“Participation in DC plans has grown to include about two-thirds of our active membership,” said PSPRS Trustee and Phoenix Fire Department Captain Brian Moore. “Hitting $1 billion in assets signals that these plans are becoming a key long-term resource for our members’ and retirees’ financial well-being.”
The majority of PSPRS DC plan assets are held in the Public Safety Personnel Defined Contribution Retirement Plan, a 401(a) plan established in 2017 due to pension reform efforts signed into law. The DC plan was created to serve tier 2 and 3 public safety members with “hybrid” pension and defined contribution benefits and as a stand-alone option for tier 3 members. Newly hired corrections and detention officers began using the plan, which also receives members’ deferred compensation plan balances, in 2018.
Nearly 22,000 members hold DC plan accounts managed under the oversight of the PSPRS Defined Contribution Committee, chaired by Moore. Automatic contributions from members and matching contributions from employers, combined with compounding interest, contributed to the growth in plan assets.
The $1 billion asset milestone was also supported by the increasing popularity of supplemental 401(a) and 457 retirement savings options. Participation in the 457 plan has grown exponentially, with 1,900 participants recorded in 2024 compared to just four in 2020.
The PSPRS Defined Contribution Committee also oversees the Elected Officials Defined Contribution Retirement System, which has served elected officials and members of the judiciary since its 2014 inception.
Changes to individual employer contribution rates will vary, some significantly. Public safety and corrections employers are also encouraged to review contribution rate changes to the well-funded Tier 3 retirement plans.
“Our plans, particularly public safety and corrections, have made dramatic improvements over the past several years but what we’re seeing now is the steady progress that we planned for,” Townsend said. “Likewise, we’re investing time and resources into improvements like the STARS pension administration system and funding policy and system governance initiatives for the long-term success of PSPRS.”