House of Representatives

SB 1129

CORP; members; normal retirement

Sponsors: Senator Bundgaard

DP	Committee on Retirement and Government Operations
DP	Committee on Appropriations
X	Caucus and COW
	As Passed the House

SB 1129 provides a 20-year normal retirement plan for the Corrections Officer Retirement Plan (CORP) and makes various Arizona State Retirement System (ASRS) and Public Safety Personnel Retirement System (PSPRS) members eligible for CORP.

History

Currently, normal retirement eligibility for CORP members is achieved at any age with 25 years of credited service, or age 62 with 10 years of credited service, or any combinations of age and years of credited service totaling 80 points. The normal retirement benefits are calculated by multiplying two and on-half per cent times the average monthly salary times the years of credited service, not to exceed 75 per cent of the members average monthly salary.

The employer’s contribution rate is actuarially determined annually and set for a biennium. Currently, the employer’s contribution rate has a floor placed in statute that disallows the employer’s contribution rate to fall below two per cent. The employee’s contribution rate is currently set in statute at an eight and one-half per cent fixed rate.

Provisions

· Allows the director and assistant directors of the department of juvenile corrections, the superintendent of the state educational system for committed youth and the director, deputy director and assistant director of the state department of corrections to participate in PSPRS, regardless of the hiring date.

· Allows full-time dispatchers of an eligible PSPRS employer group to participate in CORP if the governing body or agency of the employer enters into a joinder agreement with the fund manager. All full-time members shall be designated for membership in the plan, unless written consent from the fund manager is given to the contrary within 60 days after the effective date of this act.

· Requires each participating employer of full-time dispatchers to have a local board.

· Provides for a normal retirement benefit that equals 50 per cent of the member’s average monthly salary, if the member has achieved 20 years of credited service.

· Provides for a 2 per cent increase of the member’s average monthly salary multiplied by each year of credited service in excess of 20 years.

· Provides for a 2.5 per cent increase of the member’s average monthly salary multiplied by each year of credited service in excess of 20 years, if the member has achieved 25 or more years of credited service.

· States that fractional years in excess of 20 or 25 years of credited service shall be increased on a pro rata basis.

· States that a member who has achieved normal retirement eligibility, other than 20 years of credited service is entitled to receive the current normal retirement benefit.

· Caps the member’s retirement benefit at 80 per cent of the member’s average monthly salary, rather than 75 per cent and removes the 30-year cap when calculating a member’s pension.

· Provides for a transfer of assets clause for all ASRS members who become members of CORP pursuant to this legislation.

· Makes technical and conforming changes.

SB 1129 passed the Retirement and Government Operations Committee unamended.

SB 1129 passed the Appropriations Committee unamended.

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45th Legislature

First Regular Session 2 April 18, 2001

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