ARIZONA STATE SENATE
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. Allows current retired members,
who previously didn't qualify, to receive permanent benefit increases.
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 removes 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.
In 1999, the statutory
requirement that a member be age 55 at the time of retirement to receive
permanent benefit increases was changed to allow members who have been retired
for two years to receive permanent benefit increases. H.B. 2372 provides for a
permanent benefit increase for those retirees who did not qualify for benefit
increases prior to 1999.
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. Allows current retired members who did not qualify for a benefit increase prior to 1999, to receive a permanent benefit increase.
4. Specifies that prior service being redeemed cannot be on account with any other retirement system.
5. Changes the redemption calculation responsibility from the fund manager to the PSPRS actuary.
6. Makes technical and conforming changes
7. Provides for a general effective date.
Amendment
Adopted by Committee
· Allows current retired who did not qualify for a benefit increase prior to 1999, to receive a permanent benefit increase.
House Action Senate Action
RGO 2/5/02 DP 9-0-0-1-0
FIN 4/15/02 DPA 7-0-1-0
APPROP 3/19/02 DP 14-0-0-2-0
Prepared by Senate Staff
April 17, 2002