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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
PSPRS; deferred retirement option plan
Purpose
Extends, from 60 months to 84 months, the voluntary Deferred Retirement Option Plan (DROP) participation period.
Background
The Public
Safety Personnel Retirement System (PSPRS) Board of Trustees must offer DROP
participation to a Tier 1 PSPRS member (member) who has at least 20 years of
credited service on a voluntary basis as an alternative method of benefit
accrual. DROP provides members who elect to participate access to a lump sum
benefit in addition to their normal monthly retirement benefit on actual
retirement. A member who elects to
participate in DROP must voluntarily and irrevocably designate a period of
participation of up to 60 months (A.R.S. §§ 38-844.02 and
38-844.03).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Extends, from 60 months to 84 months, the voluntary DROP participation period.
2. Becomes effective on the general effective date.
Prepared by Senate Research
February 7, 2022
MG/slp