Member Benefits

As a participant in PSPRS, the benefits that are available to you vary depending on your Membership Tier:

Retirement Benefits
Deferred Annuity
Disability Pension
Deferred Retirement Option Plan (DROP)
Health Insurance Premium Benefit (Subsidy)
Public Safety Cancer Insurance Policy Program (CIP)
Survivor Benefits

Retirement Benefits Eligibility and Calculation

For Tier 1, 2 and 3 DB Members, your retirement benefit is payable to you for your lifetime and is calculated using a formula that takes into consideration factors such as:

Which Membership Tier you belong to,
Your total credited service,
Your monthly average salary; and
In some instances, your age

Membership Tier 1 - Normal Retirement Defined Benefit (DB) Plan

If a member attains the requirements for a retirement benefit, the member must make application by Applying for Benefits prior to termination of employment.

Age	Service	Calculation
62	15 years	Average monthly benefit compensation x 50% for the first 20 years of credited service. The benefit is reduced by 4% for each year of credited service under 20 years.
Not required	20 years of credited service	Average monthly benefit compensation x 50% for the first 20 years of credited service.
Not required	20 years of service with less than 20 years of credited service	Average monthly benefit compensation x 50% for the first 20 years of credited service. The benefit is reduced by 4% for each year of credited service under 20 years.
Not required	20 to 24.99 years of credited service	Average monthly benefit compensation x 50% for the first 20 years of credited service plus 2% of the average monthly benefit compensation for each year of credited service between 20 and 24.99.
Not required	25 or more years of credited service	Average monthly benefit compensation x 50% for the first 20 years of credited service plus 2.5% of the average monthly benefit compensation for each year of credited service above 20 years up to a maximum of 80% of the average monthly benefit compensation.

Membership Tier 2 - Normal Retirement Defined Benefit (DB) Plan

If a member attains the requirements for a retirement benefit, the member must make application by Applying for Benefits prior to termination of employment. However, if a member attains the service requirement, but not the age requirement, the member may elect to leave their contributions on account until reaching the age requirement and may then elect to receive a retirement benefit by Applying for Benefits.

Age	Service	Calculation
52.5	15 years of service	Average monthly benefit compensation x credited service x multiplier (below).
52.5	25 or more years of service	Average monthly benefit compensation x 62.5% for the first 25 years of credited service plus 2.5% of the average monthly benefit compensation for each year over 25 years of credited service up to a maximum of 80% of the average monthly benefit compensation. The benefit is reduced by 4% for each year of credited service under 25 years with a pro-rata reduction for any fractional years.

Membership Tier 2 (hybrid) Defined Contribution (DC) Plan for Non-Social Security Positions

Employee contributions and earnings are immediately vested and fully vested after ten years of service with employer contributions vesting at a rate of 10% per year. For members participating in the 401(a) Defined Contribution (DC) Plan, please visit Nationwide Retirement Solutions.

Membership Tier 3 Defined Benefit (DB) Plan

Age

Credited Service

Calculation

52.5

Early Retirement

15 years of credited service

Actuarially reduced benefit based on the average monthly benefit compensation x credited service x multiplier (below).

Normal Retirement

15 or more years of credited service

Average monthly benefit compensation x credited service x multiplier (below) up to a maximum of 80% of the average monthly benefit compensation.

Plus Membership Tier 3 (hybrid) Defined Contribution (DC) Plan for Non-Social Security Positions

Membership Tier 3 Defined Contribution (DC) Plan Only

By statute, PSPRS is required to make benefit education services available to members and has contracted with Public Safety Financial/Galloway for this purpose. PSPRS does not endorse any fee-based asset management services for our members. Additionally, members may always choose their own financial and investment counseling. Public Safety Financial/Galloway can be contacted by phone at (480) 325-8668, in-person at 1138 N. Alma School Rd., Suite 201, Mesa, AZ 85201, or online at https://galloway911.com.

Multiplier for Tier 2 and Tier 3

Credited Service	Multiplier
15 to 16.99	1.5%
17 to 18.99	1.75%
19 to 21.99	2.0%
22 to 24.99	2.25%
25 or more	2.50%

Deferred Annuity

Once a member attains the age requirement for a deferred annuity, the member must make application by Applying for Benefits.

Membership Tier 1

Inactive members (not making contributions to the System) who have at least 10 years of credited service may elect to receive a Deferred Annuity at the age of 62. This annuity is a lifetime monthly payment that is actuarially equivalent to the member’s accumulated contributions in the System plus an equal amount paid by the employer. This annuity is not a retirement benefit; it is an annuity and, because of this, annuitants are not entitled to survivor benefits, benefit increases, subsidy (premium benefit), or participation in the group health insurance program.

Membership Tier 2

and

Membership Tier 3

DB Members Only

A deferred annuity is not available; however, if a member attains the service requirement, but not the age requirement, the member may elect to leave their contributions on account until reaching the age requirement and may then elect to receive a retirement benefit.

Note: “Inactive” members (not making contributions to the Plan), please see death benefit information in the “Inactive Members” section of Survivor Benefits.

For an outline of the differences between the membership tiers, benefit eligibility, options, and other System-related information, click for the PSPRS Matrix of Plan Provisions.

Additional Resources

For additional resources, Plan summary, guide books and forms, you may access our Forms & Resources webpage and for the latest news and information, we encourage you to Sign Up for News and Updates. To estimate future benefits, you may access your Members Only online account, or contact your Local Board for an estimate, or retirement packet. If you are not certain who the Local Board contact person is, please Contact Us, or visit our Applying for Benefits webpage for retirement information.

Public Safety Personnel