Bill > SB1365

This bill modifies the Public Safety Personnel Retirement System (PSPRS) contribution rules, primarily focusing on member contribution rates and employer-employee cost-sharing for members hired on or after July 1, 2017. For members in the public safety employer risk pool, the bill introduces a new provision that caps an individual member's contribution at 9.5% of their compensation, with any required contribution above that percentage to be paid by the employer. This change ensures that members are not required to contribute more than this maximum percentage, while still maintaining the overall funding requirements of the retirement system. The bill also clarifies rules around asset transfers between employer accounts, allows for longer amortization periods for unfunded liability calculations (up to 30 years), and establishes procedures for transferring liability when an employee is reemployed by a different employer within the same retirement plan. The changes are designed to provide more flexibility in managing retirement system contributions and liabilities while protecting members from excessive individual contribution requirements. The bill will become effective on June 30, 2026, giving employers and the retirement system time to prepare for and implement these new provisions.

Budget and Finance, Military Affairs and Security

https://apps.azleg.gov/BillStatus/BillOverview/82762