Assigned to FIN                                                                                                                 FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1045

 

CORP; benefit increases

 

Purpose

 

Changes the method used to calculate maximum benefit increases for members of the Corrections Officer Retirement Plan (CORP).

 

Background

 

Currently, annual CORP benefit increases are limited to four percent of the average benefit received by CORP members on the preceding June 30.  According to CORP administrators, there is a great deal of disparity between individual pensions within CORP, thereby making the percentage of increased benefits larger for some than for others.  S.B. 1045 would eliminate the disparity in the percentage increase of individual benefits by limiting the yearly benefit increase to four percent of each individual’s benefit on the preceding June 30.

 

CORP administrators anticipate no fiscal impact to the state general fund.  A fiscal note has been ordered for this bill.

 

Provisions

 

1.      Changes the maximum CORP yearly benefit increase for an individual member from four percent of all members’ average benefits to four percent of the individual member’s retirement benefit, on the preceding June 30.

 

2.      Provides for a general effective date.

 

 

Prepared by Senate Staff

February 7, 2001