This bill proposes to amend section 38-843 of the Arizona Revised Statutes, specifically regarding the contribution rates for members of the Public Safety Personnel Retirement System (PSPRS) who were hired on or after July 1, 2017 (Tier 3 members). The current law requires that the remaining fifty percent of both the normal cost and the actuarially determined amount for amortizing the total unfunded accrued liability be divided among members in the risk pool. The bill introduces a cap on the contribution rate, stating that no member may be required to pay more than 9.5 percent of their compensation. If the calculated contribution exceeds this cap, the employer is responsible for covering the difference.

Additionally, the bill specifies that these changes will take effect on July 1, 2026, and it clarifies that member contributions will begin simultaneously with membership in the system and will be deducted from payroll. The bill also maintains the existing provisions regarding the transfer of actuarially accrued liabilities when a member is reemployed with a subsequent employer within the same retirement plan. Overall, the bill aims to provide financial relief to Tier 3 members by limiting their contribution rates while ensuring that employers remain accountable for any excess contributions.

Statutes affected:
Introduced Version: 38-843
Senate Engrossed Version: 38-843