ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
PUBLIC SAFETY COMMITTEE AND
APPROPRIATIONS COMMITTEE
DATE: February 17, 2025
SUBJECT: Strike everything amendment to S.B. 1148, relating to CORP; defined contribution;
contribution rates
Purpose
Prescribes employee and employer contribution rates for Corrections Officer Retirement
Plan (CORP) employers and specified county detention officers who participate in the Public
Safety Personnel Retirement System (PSPRS) Defined Contribution Plan.
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.
An employee of a CORP employer who is hired on or after July 1, 2018 (Tier 3 CORP member),
must participate in the PSPDCRP. An employee's benefit election under CORP remains with the
employee for the duration of employment with any CORP employer regardless of whether the
employee's employment is continuous. The Tier 3 CORP member employee contribution rate is
statutorily set at 7 percent of the member's gross pensionable compensation and each member may
make a onetime irrevocable election to adjust the contribution rate to not less than 5 percent. The
employer contribution rate for Tier 3 CORP members is 5 percent and member contribution rate
adjustments do not impact employer contributions. Tier 3 CORP members are fully vested in the
PSPDCRP after three years of service, with employer contributions vesting at: 1) 25 percent after
the first year of service; 2) 50 percent after the second year of service; and 3) 100 percent after the
third year of service (A.R.S. ยงยง 38-867; 38-881; and 38-881.01).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires a CORP member who is a county detention officer hired on or after July 1, 2028, to
contribute 7.5 percent of gross pensionable compensation as the employee contribution rate.
2. Requires CORP employers, beginning July 1, 2026, for all county detention officers hired on
or after July 1, 2018, to contribute the following percentages of the employee's gross
pensionable compensation as the employer contribution rate:
a) 10 percent, for up to 3 years of service;
b) 17.5 percent, for between 3 years and 10 years of service;
c) 20 percent, for between 10 years and 15 years of service; and
d) 22.5 percent, for 15 or more years of service.
MOLLY GRAVER
LEGISLATIVE RESEARCH ANALYST
FINANCE COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO
S.B. 1148
Page 2
3. Makes conforming changes.
4. Becomes effective on the general effective date.