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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
public retirement systems; administration
Purpose
Requires a Public Safety Personnel Retirement System (PSPRS) employer participating in the Public Safety Cancer Insurance Policy Program (CIP) to pay CIP premiums and to include premium amounts as wages subject to federal and state income and employment taxes. Requires certain PSPRS Board annual reports to be provided by December 1, rather than December 31.
Background
A PSPRS employer that employs firefighters or peace officers must participate in the CIP (A.R.S. § 38-642). The CIP is a welfare benefit plan intended to pay expenses incurred in the treatment of cancer as provided in the insurance policy secured or established by the PSPRS Board. CIP coverage is intended to be excluded as gross income for employees and retirees (A.R.S. § 38-643).
In the administration, management and operation of PSPRS, the Elected Officials' Retirement Plan (EORP) and the Corrections Officer Retirement Plan (CORP), the PSPRS Board is responsible for providing statutorily required annual reports to certain entities by December 31 of each year (A.R.S. §§ 38-803; 38-832; 38-840.01; 38-848; 38-848.02; 38-866; and 38-883).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a PSPRS employer who is required to participate in the CIP, to the extent required to exclude coverage as gross income, to pay the CIP premiums and to include participating firefighter and peace officer premium amounts as wages subject to federal and state income and employment taxes.
2. Requires the following PSPRS Board annual reports to be provided by December 1, rather than December 31:
a) the final report on the EORP contribution rate for the ensuing fiscal year;
b) the report on the status of the Elected Officials' Defined Contribution Retirement System (EODCRS);
c) the detailed report on the EODCRS Disability Program operation and investment performance and the contribution rate for the ensuring fiscal year;
d) the final report on the PSPRS contribution rate for the ensuing fiscal year;
e) the report on the PSPRS funding status, rate of return and shared cost structure of employees and employers;
f) the status of the Public Safety Personnel Defined Contribution Retirement Plan; and
g) the final report on the CORP contribution rate for the ensuing fiscal year.
3. Includes a simple retirement account and a Roth individual retirement account, each of which must satisfy U.S. Internal Revenue Code requirements, in the definition of eligible retirement plan.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
January 18, 2022
MG/slp