Assigned to MABS FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1365
PSPRS; member contributions
Purpose
Effective July 1, 2026, caps the employee contribution rate at 9.5 percent for employees of
Public Safety Personnel Retirement System (PSPRS) employers who are hired on or after July 1,
2017 (Tier 3 members).
Background
PSPRS provides a uniform, consistent and equitable statewide retirement program for
Arizona’s municipal firefighters and police, highway patrol and other public safety personnel.
PSPRS is funded through employee and employer contributions and interest earned through
investment. Tier 3 members are eligible to participate in PSPRS or the PSPRS DC Plan
(PSPDCRP) and some Tier 3 members may contribute towards a hybrid plan that consists of both
PSPRS and the PSPDCRP. For Tier 3 members that participate in PSPRS, contribution rates vary
according to whether the employer participates in the risk pooled plan or an independent plan and
required contributions are split equally between members and employers (PSPRS).
If prohibiting Tier 3 members from paying a contribution rate higher than 9.5 percent
results in an increase in employer contributions, there may be an impact to the state General Fund.
Provisions
1. Caps the Tier 3 member contribution rate at 9.5 percent and requires PSPRS employers to pay
the difference if the member's contribution rate must be higher.
2. Becomes effective on July 1, 2026.
Prepared by Senate Research
February 13, 2025
MG/slp