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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
PSPRS; investments
Purpose
Specifies that the investment cap that prohibits the Public Safety Personnel Retirement System (PSPRS) from owning more than five percent of the voting stock of any one corporation applies to publicly traded corporations.
Background
Established in 1968, PSPRS provides a uniform, consistent and equitable statewide retirement program for Arizona’s municipal firefighters and police, highway patrol and other public safety personnel. PSPRS is funded through employee and employer contributions and interest earned through investment (A.R.S. § 38-841).
Statute grants the PSPRS Board of Trustees full power to invest, reinvest and manage PSPRS assets and its administered trusts, subject to specific investment caps on combined assets and managed plans, including: 1) an 80 percent cap on investments in corporate stocks, based on the cost value of the stocks irrespective of capital appreciation; 2) a 5 percent cap on investments in corporate stock issued by any one corporation, other than corporate stock issued by corporations chartered by the U.S. government or corporate stock issued by a bank or insurance company; and 3) a 5 percent cap on ownership of the voting stock of any one corporation, except membership interests in limited liability companies (A.R.S. § 38-848).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
2. Becomes effective on the general effective date.
Prepared by Senate Research
January 29, 2026
MG/SJ/hk