If enacted, this bill would amend section 38-843 of the Arizona Revised Statutes to cap the employee contribution rate for members of the Public Safety Personnel Retirement System (PSPRS) who were hired on or after July 1, 2017 (Tier 3 members) at 9.5 percent of their compensation. The current law, which does not specify a maximum contribution rate, would be updated to include this cap, ensuring that no Tier 3 member is required to contribute more than this percentage. Additionally, if the calculated contribution rate exceeds 9.5 percent, the employer would be responsible for covering the difference.

The bill also specifies that these changes would take effect on July 1, 2026, and includes provisions for 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 protection for Tier 3 members while potentially impacting employer contributions and the state General Fund.

Statutes affected:
Introduced Version: 38-843