Assigned to FIN                                                                                                                          FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2372

 

PSPRS; redemption of prior service

 

Purpose

 

Allows all Public Safety Personnel Retirement System (PSPRS) members employed by an employer now covered under PSPRS, fire fighters and peace officers who have prior service with any state in the United States or a federal entity to redeem prior service with 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.  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. 2372 eliminates provisions limiting prior service redemption to employees who receive a refund from statutorily specified pension funds.  This legislation also allows full-time fire fighters and peace officers who have previous service with any state or federal government entity and is now a member of PSPRS to redeem prior service.          

 

There is no identifiable fiscal impact associated with this bill.

 

Provisions

 

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

 

2.      Allows a PSPRS member who formerly worked as a full-time fire fighter or as a peace officer for a state or a federal entity to redeem prior service.  

 

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

 

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

 

5.      Makes technical and conforming changes

 

6.      Provides for a general effective date.

House Actions

 

RGO                2/5/02              DP       9-0-0-1-0

APPROP         3/19/02            DP       14-0-0-2-0

 

 

Prepared by Senate Staff

April 11, 2002