ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

 

HB 2329: procurement; director; technical correction

S/E: CORP; employee enrollment; membership; election

Sponsor: Representative Payne, LD 27

Committee on Military Affairs & Public Safety

Summary of the Strike-Everything Amendment to HB 2329

Overview

Permits corrections and detention employees in this state to elect to participate in either the Corrections Officer Retirement Plan (CORP) or the Public Safety Personnel Defined Contribution Retirement Plan (PSPDCP).

History

CORP is a defined benefits plan administered by the Public Safety Personnel Retirement System (PSPRS). A defined benefits plan promises a specified monthly benefit at retirement; the benefit is calculated based on a formula of salary and service. The contribution rate to CORP is calculated based on 66.7% of the normal cost plus 50% of specified unfunded accrued liability, which means that its contribution rate fluctuates year-to-year (A.R.S. Title 38, Chapter 5, Article 7).

PSPDCP is a defined contribution plan administered by Nationwide Retirement Solutions. A defined contributions plan does not promise a specific amount of benefits at retirement. PSPDCP is a tax-deferred qualified retirement plan; contributions are matched by the employer up to 5%. Contributions to this plan are invested, and the benefit is determined based on contributions and investment earnings (A.R.S. Title 38, Chapter 5, Article 4.1).

Pursuant to A.R.S. § 38-8810.01, specified corrections and detention employees (Officers) hired on or after July 1, 2018 are enrolled in PSPDCP. Prior to July 1, 2018, corrections officers and detention officers were permitted to elect to participate in either CORP or PSPDCP.

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteProvisions

1.   Permits Officers hired on or after July 1, 2025 to elect to participate in either CORP or PSPDCP. (Sec. 3)

2.   Directs the PSPRS Board of Trustees to provide Officers hired on or after July 1, 2025 education and information about CORP and PSPDCP during their first 60 days of employment. (Sec. 3)

3.   States that the participation of Officers in either CORP or PSPDCP begins 90 days after the start of employment. (Sec. 3)

4.   Provides that unless an Officer elects otherwise within 90 days after beginning employment, he is automatically enrolled in CORP by default. (Sec. 3)

5.   Specifies that an Officer's election between CORP and PSPDCP is irrevocable for the remainder of his employment, unless he is subsequently in a position that allows for a new election. (Sec. 3)

6.   Stipulates that if an Officer is rehired after a termination more than six months previous, then he may make a new election between CORP or PSPDCP. (Sec. 3)

7.   Grants Officers hired on or after July 1, 2018 and before the effective date of this Act a period, of 90 days after the effective date of this Act, to make an irrevocable election to switch from PSPDCP to CORP. (Sec. 4)

8.   Specifies Officers hired on or after July 1, 2018 and before the effective date of this Act who do not make an election will continue to participate in PSPDCP. (Sec. 4)

9.   Makes technical and conforming changes. (Sec. 1, 2, 3)

 

 

 

 

 

 

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                        HB 2329

Initials NM    Page 0 Military Affairs & Public Safety

 

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