As a participant in PSPRS as a Tier 1, 2 or 3 DB Member, benefits that are available to you vary depending on your Membership Tier:
Increases for Tier 1, 2 and 3 DB Members and Survivors
Cost of Living Adjustment (COLA) increase for public safety retirees and survivors is determined based on the Consumer Price Index (CPI) published by the U.S. Bureau of Labor Statistics for the metropolitan Phoenix-Mesa-Scottsdale area ending December 31 of the prior calendar year. Contingent on the CPI, up to 2% may paid as a COLA.
For NEW retirees and survivors with a retirement date after July 1 of the prior fiscal year, the increase is prorated based on the date of retirement. The following table provides examples how an increase is calculated if an increase is granted July 1, 2021:
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Example 1: Effective retirement date 7/1/2020 # of months retired: 12 |
Example 2: Effective retirement date 1/1/2021 # of months retired: 6 |
Example 3: Effective retirement date 6/1/2021 # of months retired 1 |
Example 4: Effective retirement date 7/1/2021 |
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|
Base benefit |
$1,000.00 |
Base benefit |
$1,000.00 |
Base benefit |
$1,000.00 |
Not eligible for the increase this year since the member was not retired prior to the effective date of the increase |
|
2% COLA |
$20.00 |
2% COLA |
$20.00 |
2% COLA |
$20.00 |
|
|
Eligible for the full increase |
Eligible for 6 months of the increase Formula: $20 / 12 (months) x 6 (months) = $10.00 |
Eligible for 1 month of the increase Formula: $20 / 12 (months) x 1 (month) = $1.67 |
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New base |
$1,020.00 |
New base |
$1,010.00 |
New base |
$1,001.67 |
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Please note that if a COLA is granted, it may change the monthly Federal and Arizona state income tax withholding amounts and so members are encouraged to view their Direct Deposit Notices via Members Only, showing the gross, deductions and net check.
Additional Increase Requirements for Tier 3 DB Members and Survivors
The increase will be payable after 7 years of retirement, or at age 60, whichever comes first, and will be determined based on the funding level of the PSPRS.
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Funding Level |
Increase |
|
70% to < 80% |
1.0% cap |
|
80% to < 90% |
1.5% cap |
|
90% or more |
2.0% cap |
Funding Levels
To help understand the factors and investment methodologies, please view current and prior fiscal year information in the ACFR (Annual Comprehensive Financial Reports), or the Actuarial Valuations under Annual Reports.
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.
