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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
AMENDED
PSPRS; benefit computation; return-to-work
Purpose
Conforms, to the Internal Revenue Code, the age at which a Public Safety Personnel Retirement System (PSPRS), Corrections Officer Retirement Plan (CORP) or Elected Officials' Retirement Plan (EORP) retired member's benefit payments must commence and modifies the definition of average monthly benefit compensation for a Tier 1 PSPRS member.
Background
Payment of benefits to a retired PSPRS, CORP or EORP member must commence no later than April 1 of the calendar year following the calendar year in which the member attains 70.5 years of age or the date the member terminates employment, whichever is later (A.R.S. §§ 38-808; 38-844; and 38-890).
PSPRS consists of three membership tiers:
|
Tier |
Date of Employee Hire |
|
1 |
Before January 1, 2012 |
|
2 |
January 1, 2012 – June 30, 2017 |
|
3 |
July 1, 2017 and thereafter |
Average monthly benefit compensation is the result obtained by dividing the total compensation paid to an employee during a considered period by the number of months that compensation was received. A period of nonpaid or partially paid industrial leave is included in the considered period for both a Tier 2 and Tier 3 member (A.R.S. § 38-842).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Conforms, to the Internal Revenue Code, the age at which a PSPRS, CORP or EORP retired member's benefit payments must commence by raising the age from 70.5 years old to 72 years old.
2. Requires, in the consideration period of a Tier 1 member's average monthly benefit compensation, a period of nonpaid or partially paid industrial leave to be considered based on the compensation the employee would have received in their job classification if the employee was not on industrial leave.
3. Adds a specification, for elected officials who are elected or appointed beginning January 1, 2014, and who are subject to the ASRS statutes, that the elected official must be eligible for ASRS service credit for their service.
4. Makes technical changes.
5. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Adds a specification, for the elected officials who are subject to the ASRS statutes, that the elected official must be eligible for ASRS service credit for their service.
House Action Senate Action
GOV 1/30/20 DPA 11-0-0-0 FIN 3/11/20 DPA 8-0-2
3rd Read 2/20/20 59-1-0
Prepared by Senate Research
March 12, 2020
MG/gs