ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
PSPRS; CORP; reemployment; time period
Purpose
Decreases, from 12 months to 6 months, the time period after which a retired member of the Public Safety Personnel Retirement System (PSPRS) or Corrections Officer Retirement Plan (CORP) may become reemployed and be eligible to continue to receive pension payments.
Background
A retired PRPRS or CORP member is eligible for a normal pension beginning on the member's normal retirement date. A PSPRS or CORP member may be reemployed by the employer from which the member retired and may be eligible to continue to receive pension payments, if the reemployment occurs 12 months or more after the date of retirement, subject to statutory requirements.
If a retired PSPRS member becomes reemployed in any capacity by the employer from which the member retired before 12 months after the retirement date or in the same position at any time following retirement or if a retired CORP member is reemployed within 12 months after retirement in a designated position by the employer from which the employee retired: 1) the payment of pension benefits must be suspended during the period of reemployment; 2) employee contributions may not be made on the member's account; and 3) for a member who retired on or after July 1, 2009, any pension payments during reemployment are considered overpayments, with certain exceptions.
If a PSPRS or CORP member who retired on or after July 1, 2009, becomes reemployed before 12 months after the date of retirement and proceeds to terminate the reemployment, the member may be subsequently reemployed and resume receiving pension payments after a period of 12 months, less the period of time the retired member was not reemployed, if at least 60 days of the 12 months are consecutive.
A retired PSPRS member that becomes reemployed after 60 consecutive days from the member's retirement date as a result of participating in an open competitive new hire process for an entry level, nonsupervisory position is exempt from certain pension limitations imposed on a reemployed retired member (A.R.S. 38-844; 38-849; and 38-884).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Decreases, from 12 months to 6 months, the time period after the date of retirement that a PSPRS or CORP member may become reemployed by the same employer from which the member retired and be eligible to continue to receive pension payments, subject to statutory requirements.
2. Subjects, to outlined pension limitations for reemployment, a retired PSPRS member who has a prearranged reemployment agreement with an employer and who becomes reemployed after 60 consecutive days from the member's retirement date as a result of participating in an open competitive new hire process.
3. Removes the criteria, for the exemption from pension limitations for PSPRS members reemployed as a result of an open hire process, that the position be an entry level, nonsupervisory position.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
House Action
GE 1/26/22 DP 13-0-0-0
3rd Read 2/3/22 56-2-2
Prepared by Senate Research
February 28, 2022
MG/AN/slp