Assigned to PS AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
FACT SHEET FOR S.B. 1148
CORP; defined contribution; membership election
(NOW: CORP; defined contributions)
Purpose
Prescribes employee and employer contribution rates for Corrections Officer Retirement
Plan (CORP) employers and CORP members 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, except for court probation and surveillance officers who may
participate in CORP or 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).
The Joint Legislative Budget Committee issued a fiscal note on the strike-everything
amendment to S.B. 1148 and estimated increased costs for each county, except Greenlee County,
totaling $3.9 million in FY 2027. However, the Senate amended S.B. 1148 to apply the modified
employee and employer contribution rates to all CORP members who participate in the PSPDCRP
which would result in increased costs to all CORP employers who employ Tier 3 CORP members
(JLBC fiscal note).
Provisions
1. Requires a CORP member hired on or after July 1, 2026, who participates in the PSPDCRP 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 CORP members who
participate in the PSPDCRP and who are hired on or after July 1, 2018, to contribute the FACT SHEET – Amended
S.B. 1148
Page 2
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.
3. Makes conforming changes.
4. Becomes effective on the general effective date.
Amendments Adopted by Committee
• Adopted the strike-everything amendment.
Amendments Adopted by Committee of the Whole
1. Requires all CORP members hired on or after July 1, 2026, who participate in the PSPDCRP,
rather than only county detention officers, to contribute 7.5 percent of gross pensionable wages
as the employee contribution rate, excluding court probation and surveillance officers.
2. Requires CORP employers to pay the increased employer contribution rate based on years of
service for all CORP members hired on or after July 1, 2026, who participate in the PSPDCRP,
rather than only county detention officers, and excluding court probation and surveillance
officers.
3. Makes conforming changes.
House Action
PS 2/19/25 DPA/SE 5-2-0
APPROP 2/20/25 W/D
Prepared by Senate Research
March 17, 2025
MG/mg