REVISED
ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
PUBLIC SAFETY COMMITTEE
DATE: February 19, 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. §§ 38-867; 38-881; and 38-881.01).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation. The Joint Legislative Budget Committee estimates that the strike-everything
amendment to S.B. 1148 will increase costs for each county, except Greenlee County, by a total
of $3.9 million in FY 2027 (JLBC fiscal note).
Provisions
1. Requires a CORP member who participates in the PSPDCRP and who is a county detention
officer hired on or after July 1, 2026, to contribute 7.5 percent of gross pensionable
compensation as the employee contribution rate.
2. Requires each CORP employer, beginning July 1, 2026, for all county detention officers who
participate in the PSPDCRP and who are hired on or after July 1, 2018, to contribute the
following percentages of the employee's gross pensionable compensation as the employer
contribution rate:
MOLLY GRAVER
LEGISLATIVE RESEARCH ANALYST
FINANCE COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO – Revised
S.B. 1148
Page 2
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.
3. Makes conforming changes.
4. Becomes effective on the general effective date.
Revisions
• Updates the fiscal impact statement.