House of Representatives

HB 2372

PSPRS; redemption of prior service

Sponsors: Representatives Marsh, Avelar:

Cardamone, Carpenter, et al.

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

HB 2372 allows prior service as a full-time paid firefighter or full-time paid certified peace officer of the United States Government, a state of the United States, or a political subdivision, to be redeemable if an employee is with an employer now covered under Public Safety Personnel Retirement System (PSPRS).

Current Status

HB 2372 passed the Retirement and Government Operations Committee unamended.

History

The purpose of PSPRS is to provide uniform, consistent and equitable statewide retirement program for public safety personnel who are regularly assigned to hazardous duty by the State of Arizona, or a political subdivision of this State. The membership is comprised of eligible employees who are employed by an employer who entered the system in 1968 or who has entered into an agreement to join the system on behalf of an eligible group. All present active members of the system may elect to redeem any part of the prior service by paying into the system the amounts required, if they meet either of the following conditions:

§ The member had previous service in Arizona under an employer now covered by the system and received a refund of accumulated contributions from the Fire Fighter’s Relief and Pension Fund, the Police Pension Fund, the State Highway Patrol Retirement Fund or state retirement system or plan upon termination of employment or

§ The member had previous service in the system and received a refund of accumulated contributions from the system on termination of membership.

If a present active member elects to redeem any part of the prior service, the member shall pay the amounts previously withdrawn as a refund of accumulated contributions plus accumulated interest into the system. The member must also pay the additional amount necessary to equal the increase in the actuarial present value of projected benefits resulting from the redemption. The service and amounts are determined and calculated by the fund manager and the system’s actuary.

Provisions

· Repeals the stipulation that a member had to receive a refund from the Fire Fighters’ Relief and Pension Fund, Police Pension Fund, State Highway Patrol Retirement Fund or state retirement system or plan upon termination to redeem their prior service.

· Allows members formally working as full-time paid firefighters or as full-time paid certified peace officers employed by the United States Government, a state or a political subdivision of the United States to redeem prior service.

· States that in order to redeem any part of prior service, the prior service must not be in an account with any other retirement system.

· Authorizes redemption calculations using actuarial methods and assumptions prescribed by the system’s actuary, rather than the fund manager.

· Makes technical and conforming changes

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· 45th Legislature

· Second Regular Session 2 March 8, 2002

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