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 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. It also clarifies that member contributions will begin with their membership in the system and will be deducted from payroll. The bill ensures that the financial responsibilities of Tier 3 members are balanced with employer contributions, potentially impacting the state General Fund if employer contributions increase as a result of this cap.

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