Assigned to FIN                                                                                                                               FOR COMMITTEE

 


 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2081

 

PSPRS; prior service redemption

 

Purpose

 

Allows prior service to be redeemed by all Public Safety Personnel Retirement System (PSPRS) members employed by an employer now covered under PSPRS.

 

Background

 

PSPRS is designed for public employees who are regularly assigned to hazardous duties.  Originally, PSPRS was established for a specific group of fire fighters and police officers; however, over a period of several years many other groups have become eligible for coverage under PSPRS and entered the system.  PSPRS members who had previous service in the State with an employer now covered under PSPRS and who received a refund of contributions from the fire fighters pension fund, police pension fund, state highway patrol fund or state retirement system can redeem prior service by paying into PSPRS actuarial adjusted amounts.

 

H.B. 2081 eliminates provisions limiting prior service redemption to employees who receive a refund from statutorily specified pension funds.         

 

There is no identifiable fiscal impact associated with this bill.

 

Provisions

 

1.      Allows prior service to be redeemed by all PSPRS members employed by an employer now covered under PSPRS.

 

2.      Specifies that prior service being redeemed cannot be on account with any other retirement system.

 

3.      Changes the redemption calculation responsibility from the fund manager to the PSPRS actuary.

 

4.      Makes technical and conforming changes

 

5.      Provides for a general effective date.

 


House Actions

 

RGO                1/29/02            DP       8-0-0-2-0

3rd Read           2/12/02                        59-0-1-0

 

 

Prepared by Senate Staff

March 21, 2002