Assigned to FIN                                                                                                                      FOR COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

FACT SHEET FOR H.B. 2689

cancer insurance; public safety; retirees

(NOW: cancer insurance retirees; public safety)

Purpose

Effective January 1, 2026, prescribes requirements for the Public Safety Personnel Retirement System (PSPRS) Board of Trustees when determining the cost of the Cancer Insurance Program (CIP) premium.

Background

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. 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. An eligible participant must have cancer that was first diagnosed after the person's date of membership in PSPRS, the Corrections Officer Retirement Plan or the PSPRS Defined Contribution Plan.

On retirement, persons who were either receiving CIP benefits before retirement or who are diagnosed with cancer subsequent to retirement remain eligible for CIP coverage for the total of five months per year of service plus actual time spent in the Deferred Retirement Option Plan. A person whose eligibility to receive CIP benefits is expiring may continue to remain eligible for CIP coverage if the person makes an election with the PSPRS Board and pays the premium to the PSPRS Board (A.R.S. §§ 38-642; 38-643; and 38-644).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Requires the PSPRS Board, when determining the cost of the CIP premium, to determine the cost to PSPRS for persons who opt to continue coverage, except for those persons who were either receiving CIP benefits before retirement or who are diagnosed with cancer subsequent to retirement, and to set an actuarily determined premium to cover the costs.

2. Makes technical changes.

3. Becomes effective on January 1, 2026.

House Action

PSLE               2/20/25      DPA/SE            12-0-0-3

3^rd Read          3/4/25                                   56-2-2

Prepared by Senate Research

March 19, 2025

MG/ci