Assigned to FIN                                                                                                                 FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1176

 

CORP; normal retirement; twenty years.

 

Purpose

 

Reduces, from 25 to 20, the years of service required for normal retirement for members of the Corrections Officer Retirement Plan (CORP).

 

Background

 

Currently, normal retirement for members of CORP is the first day of the calendar month following a member’s completion of 25 years of service, reaching age 62 with 10 years of service, or have any combination of age and credited service equaling 80. A CORP member’s normal retirement pension is calculated by multiplying 2.5 percent of the average compensation by the number years of service up to 30, not to exceed 75 percent of the member’s average compensation. S.B. 1176 lowers the years of service required for normal retirement from 25 to 20 years, which, according to the Department of Corrections, is needed to improve the recruitment and retention of corrections employees.

 

In an informal fiscal estimate, the Joint Legislative Budget Committee (JLBC) forecasted the cost to the general fund to be $6,984,400 for FY 2004.  A formal fiscal note has been requested from JLBC.

 

Provisions

 

1.      Reduces, from 25 to 20, the years of service required for normal retirement for members of CORP.

 

2.      Provides for a general effective date.

 

 

Prepared by Senate Staff

February 1, 2001