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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
public safety cancer insurance
Purpose
Modifies the calculation of the administrative costs of the Public Safety Personnel Retirement System's (PSPRS's) Cancer Insurance Program (CIP).
Background
The PSPRS provides a uniform, consistent and equitable statewide retirement program to public safety personnel who are regularly assigned to hazardous duty of the type expected of peace officers and fire fighters. The PSPRS Board of Trustees (PSPRS Board) administers the CIP for participating employers. The CIP is a welfare benefit plan intended to pay expenses incurred in the treatment of cancer. The PSPRS Board may self-insure the CIP by establishing an insurance policy underwritten by the assets of the Public Safety CIP Account. By July 31 each year, the PSPRS Board must notify employers of the amount payable for the costs of the CIP and the amount charged to each employer may not exceed $180 per employee. Monies collected from employers must be deposited in the Public Safety CIP Account to pay for the cost of the CIP insurance policy and the cost of administering the CIP. The PSPRS Board may use up to 10 percent of the monies deposited in the Public Safety CIP Account each year ending July 31 to pay the costs of administering the CIP. If no monies are deposited in the Public Safety CIP Account in a given year, the PSPRS Board may use up to 5 percent of monies deposited in the Public Safety CIP Account in the most recent year in which there was a deposit to pay the costs of administering the CIP (A.R.S. ยงยง 38-642 and 38-643).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows the PSPRS Board to use up to the amount equal to or less than 10 percent of the total claims paid, averaged over the previous five years, rather than up to 10 percent of the monies deposited in the Public Safety CIP Account, to pay the costs of administering the CIP.
2. Excludes the cost of processing claims from the cost of administering the CIP for the purposes of the 10 percent cap.
3. Removes the stipulation that, if no monies are deposited in the Public Safety CIP Account in a given year, the PSPRS Board may use up to 5 percent of the monies deposited in the Public Safety CIP Account in the most recent year in which there was a deposit to pay the costs of administering the CIP.
4. Aligns the year end date with the fiscal year end for the purposes of calculating the cap on the cost of administering the CIP.
5. Makes technical changes.
6. Becomes effective on the general effective date.
House Action
PSLE 2/3/25 DP 15-0-0-0
3rd Read 2/13/25 50-0-10
Prepared by Senate Research
February 26, 2025
MG/ci