ARIZONA HOUSE OF REPRESENTATIVES Fifty-fourth Legislature Second Regular Session
	Senate: FIN DP 9-0-1-0 | 3^rd Read 25-0-5-0

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SB 1329: defined contribution; health subsidy; disability

Sponsor:  Senator Livingston, LD 22

Committee on Government

Overview

Outlines requirements for retired participants in the Public Safety Personnel Retirement System (PSPRS) defined contribution plan and their participation in group health and accident coverage.

History

Current statute allows a retired participant of the PSPRS defined contribution retirement plan to elect to obtain group health and accident coverage provided by the Arizona Department of Administration (ADOA), but requires them to pay the premium for the selected coverage and stipulates that they are not eligible for certain benefits (A.R.S. § 38-651.01).

The monthly amount that a member who meets the requirements for an ordinary disability pension receives is an amount that is equal to a fraction times the member's normal pension that is computed according to statute if the member had 20 years of credited service.  This fraction is obtained by dividing the member's actual years of credited service, not to exceed 20 years of credited service, by 20 (A.R.S. § 38-845).

Provisions

1. Removes the following related to a retired participant in the PSPRS defined contribution retirement plan who elects to obtain group health and accident coverage by ADOA:

a) The requirement to pay the premium for the selected coverage; and

b) Their eligibility for benefits pursuant to statute. (Sec. 1)

2. Stipulates that, for a PSPRS member, the accidental disability pension must be a monthly amount that equals not less than 50% of their average monthly benefit compensation. (Sec. 2)

3. Modifies the monthly calculation for a PSPRS member who meets the requirements for ordinary disability by dividing the member's actual years of credited service by the member's required credited service for the applicable normal retirement date, rather than 20. (Sec. 2)

4. States that a retired participant of the PSPRS defined contribution retirement plan who meets the statutorily prescribed requirements of the normal retirement date:

a) Is eligible for the payments prescribed in statute related to group health and accident coverage; and

b) May elect to purchase individual health care coverage and receive a payment through their former employer. (Sec. 3, 4)

5. Specifies that all restrictions outlined in statute apply to a retired participant who makes such an election. (Sec. 3, 4)

6. Defines participant of the public safety personnel defined contribution retirement plan. (Sec. 3, 4).

7. Makes technical and conforming changes. (Sec. 1, 3, 4)

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11.                   SB 1329

12. Initials SJ  Page 0 Government

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