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 clarifies that this cap will apply to both the general member contributions and those specific to Tier 3 members. The effective date for these changes is set for July 1, 2026. The bill also includes a provision that ensures all benefit liabilities for a member who is reemployed under the same retirement plan are attributed to the subsequent employer, with the actuarially accrued liability calculated according to the system's prescribed methods.

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