PSPRS; redemption of prior
service
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Committee on Retirement and Government Operations |
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DP |
Committee on Appropriations |
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DP |
Caucus and COW |
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DP |
Third Read |
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X |
As Passed the House |
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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).
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If a present active member elects to redeem any part of the prior service, the member shall pay the amounts previously withdrawn as a refund of accumulated contributions plus accumulated interest into the system.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.