State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1146: PSPRS; EORP; CORP; modifications

PRIME SPONSOR: Senator Livingston, LD 22

BILL STATUS: Government

                               

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteMakes various changes to the statutes relating to the Public Safety Personnel Retirement System (PSPRS), Elected Officials Retirement System (EORP) and the Corrections Officer Retirement Plan (CORP).

History

PSPRS was established in order to provide a consistent, uniform and equitable statewide retirement program for the public safety personnel in Arizona.  Separate plans for Arizona's elected officials (EORP) and corrections officers (CORP) were established later on.  All three retirement plans are qualified governmental pension plans under the Internal Revenue Code.  Each system is governed by a nine-member board of trustees that is tasked with the fiduciary responsibility to serve its members and to protect the financial health of PSPRS, EORP and CORP (www.psprs.com).

Provisions

EORP

1.       Requires an elected official who became a member of the plan before July 20, 2011 to contribute seven percent of the member's gross salary. (Sec. 1)

2.       Allows an active elected official who became a member of the plan before January 1, 2012 to redeem any amount of eligible prior service without having to have accrued any minimum amount of credited service in the plan. (Sec. 2)

3.       Permits an elected official who became a member of the plan before January 1, 2012 to receive credited service for eligible prior active military service without having to have accrued any minimum amount of credited service with the plan. (Sec. 3)

4.       Stipulates that, retroactively effective from June 30, 2017, the discount rate is an amount equal to the assumed rate of return that is prescribed by the board of trustees. (Sec. 4, 16)

5.       Repeals the previous discount rate related to EORP. (Sec. 4)

6.       Contains a retroactive effective date of July 19, 2011. (Sec. 16)

PSPRS

7.       Specifies that a member's Deferred Retirement Option Plan (DROP) participation account must be credited monthly at an interest rate equal to the assumed rate of return determined by the board of trustees. (Sec. 6)

8.       Removes the previous interest rate calculation for the PSPRS credit to a member's DROP account. (Sec. 6)

9.       Repeals the requirement that DROP participants with less than 20 years of credited service make employee contributions to the system. (Sec. 7)

10.   Allows an active member who became a member of the system before January 1, 2012 to redeem any amount of eligible prior service without having to have accrued any minimum amount of credited service. (Sec. 9)

11.   Permits a member who became a member of the system before January 1, 2012 to receive credited service for eligible prior active military service without having to have accrued any minimum amount of credited service in the system. (Sec. 10)

12.   Stipulates that, retroactively effective from June 30, 2017, the discount rate is the assumed rate of return that is prescribed by the board of trustees for members enrolled in the system before July 1, 2017. (Sec. 11, 16)

13.   Authorizes the board of trustees, on or before June 30, 2019, to choose to require interest to be paid on monies returned to members of a retirement plan or system under the jurisdiction of the board, for the period of time between the transaction until a date to be determined, but not later than the effective date of this Act. (Sec. 15)

14.   Contains a retroactive effective date of July 19, 2011. (Sec. 16)

CORP

15.   Allows a member who became a member before January 1, 2012 to redeem eligible prior military service without having to have accrued any minimum amount of credited service. (Sec. 12)

16.   Permits an active member who became a member of the plan before January 1, 2012 to redeem any amount of eligible prior service without having to have accrued any minimum amount of credited service. (Sec. 13)

17.   Specifies that, retroactively effective from June 30, 2017, the discount rate is the assumed rate of return that is prescribed by the board of trustees for members enrolled in the system before July 1, 2017. (Sec. 14, 16)

18.   Contains a retroactive effective date of July 19, 2011. (Sec. 16)

Miscellaneous

19.   Contains an emergency clause. (Sec. 17)

20.   Makes technical and conforming changes. (Sec. 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14)

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23.   ---------- DOCUMENT FOOTER ---------

24.   Fifty-fourth Legislature                       SB 1146

25.   First Regular Session                            Version 1: Government

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27.   ---------- DOCUMENT FOOTER ---------