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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
correctional officers; supplemental contributions
Purpose
Allows a Correction Officer Retirement Plan (CORP) employer to make supplemental contribution incentive payments to specified employees who are hired on or after July 1, 2018 (Tier 3 CORP members). Outlines criteria for the supplemental contributions, including setting a $5,000 maximum and requiring the contributions to occur at specified service intervals.
Background
Laws 2016, Chapter
2 required the PSPRS Board of Trustees to establish, design and administer
a defined contribution retirement plan. The PSPRS Defined Contribution Plan
(PSPDCRP) is a type of retirement plan in which the employer and employee make
contributions on a regular basis. A Tier 3 CORP member must participate in the PSPDCRP,
except for court probation and surveillance officers who may participate in
CORP or the PSPDCRP. The Tier 3 CORP member employee
contribution rate is statutorily set at 7 percent of the member's gross
pensionable compensation and each member may make a onetime irrevocable election
to adjust the contribution rate to not less than 5 percent. The employer
contribution rate for Tier 3 CORP members is 5 percent and member contribution
rate adjustments do not impact employer contributions. Tier 3 CORP members are
fully vested in the PSPDCRP after three years of service, with employer
contributions vesting at: 1) 25 percent after the first year of service; 2) 50
percent after the second year of service; and 3) 100 percent after the third year
of service (A.R.S.
§§ 38-867;
38-881;
and 38-881.01).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a CORP employer, in addition to the required employer contributions, to make a supplemental contribution incentive payment to a Tier 3 CORP member's PSPDCRP account, if the contribution:
a) does not exceed $5,000 per person;
b) is made only on a specified service interval such as 5, 10 or 15 years of service;
c) is made equally to all Tier 3 CORP members who participate in the PSPDCRP and meet the service requirement; and
d) does not require the member to make any additional monetary contribution to receive the employer's supplemental contribution.
2. Allows a CORP employer to discontinue supplemental contribution incentive payments at any time.
3. Specifies that a supplemental contribution does not affect any other CORP employer or CORP member employed by the contributing employer.
4. Specifies that a CORP employer that makes a supplemental contribution is not obligated to make additional supplemental contributions to a member who has received a previous supplemental contribution.
5. Becomes effective on the general effective date.
Prepared by Senate Research
January 29, 2026
MG/hk