This bill proposes to amend section 38-843 of the Arizona Revised Statutes, specifically addressing 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, which requires members to contribute an equal percentage of their compensation towards the unfunded accrued liability, will be updated to cap the contribution rate at 9.5 percent. If the calculated contribution exceeds this cap, the employer will be responsible for covering the difference. This change applies to both the general member contributions and those specific to Tier 3 members.

Additionally, the bill establishes that these provisions will take effect on July 1, 2026, ensuring that the new contribution limits are in place for future members. The existing language regarding member contributions, including the requirement for payroll deductions and the transfer of actuarially accrued liabilities upon reemployment, remains unchanged. Overall, the bill aims to provide financial relief to Tier 3 members while maintaining the integrity of the PSPRS funding structure.

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