Assigned to PS & APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1148
CORP; defined contribution; membership election
Purpose
Allows certain persons hired by a Corrections Officer Retirement Plan (CORP) employer
to elect to participate in CORP, rather than only in the Public Safety Personnel Retirement System
(PSPRS) Defined Contribution Plan. Prescribes retirement plan election procedures and PSPRS
Board of Trustees requirements.
Background
Laws 2016, Chapter 2 required the PSPRS Board of Trustees to establish, design and
administer a defined contribution plan. The PSPRS Defined Contribution Plan (PSPDCRP) is a
type of retirement plan in which the employer and employee make contributions on a regular basis.
CORP is a defined benefit plan administered by PSPRS.
An employee of a CORP employer who is hired on or after July 1, 2018 (Tier 3 CORP
member), must participate in the PSPDCRP. A Tier 3 CORP member who is a court probation or
surveillance officer hired on or after July 1, 2018, has the option to participate in either CORP or
the PSPDCRP. An employee's participation in the elected plan begins 90 days after the date of
hire. An employee's benefit election under CORP or PSPRS remains with the employee for the
duration of employment with any CORP employer regardless of whether the employee's
employment is continuous (A.R.S. ยงยง 38-842.01 and 38-881.01).
If allowing all Tier 3 CORP members and new CORP members to participate in CORP
generates an unfunded liability or affects employer contribution rates, there may be a fiscal impact
to the state General Fund.
Provisions
Tier 3 CORP Members and Persons Hired Before the General Effective Date
1. Allows a CORP member hired between July 1, 2018, and the general effective date to make a
onetime election, within 90 days of the general effective date, to continue participating in the
PSPDCRP or to begin participating in CORP.
2. Stipulates that, if an election is not made before the 90th day after the general effective date,
the employee must continue to be enrolled in the PSPDCRP for the remainder of employment.
Persons Hired Beginning July 1, 2026
3. Allows a person hired by a CORP employer on or after July 1, 2026, to participate in the
PSPDCRP or CORP and specifies that the employee's participation in the elected plan begins
90 days after the date the employee is hired. FACT SHEET
S.B.1148
Page 2
4. Stipulates that, if an election is not made in the 90-day period, the employee is automatically
enrolled in CORP for the remainder of employment.
5. Specifies that an employee's election is irrevocable and stays with the employee for the
remainder of employment, unless the employee is subsequently in a position that allows for a
new election.
6. Stipulates that, if an employee is hired by a new employer or subsequently rehired after a bona
fide termination of employment of at least six months with no prearranged reemployment
agreement, the employee may make a new election to participate in CORP or the PSPDCRP
before the 90th day after the date of hire.
7. Specifies that an employee's previous election will continue if a new election is not made
during the 90-day period.
Miscellaneous
8. Requires the PSPRS Board of Trustees, during the first 60 days of employment and before a
retirement plan has been selected, to provide each employee hired beginning July 1, 2026, with
interactive, objective educational training, counseling and participant-specific plan
information about CORP and the PSPDCRP.
9. Makes technical and conforming changes.
10. Becomes effective on the general effective date.
Prepared by Senate Research
January 27, 2025
MG/slp