SB 1287: PSPRS; part-time employment - Arizona

HOUSE - Amended by PSLE - passed → Chaptered Version · 6 edits

MODERATE

This bill updates the Public Safety Personnel Retirement System to include part-time employees under specific conditions and clarifies definitions for modern retirement plans. It adds a new section allowing part-time police officers to join the system for up to six years if hired due to family events or health issues, while prohibiting them from working off-duty. The bill also expands the definition of 'compensation' to include payments for contracted third-party work in specific public safety roles and adjusts eligibility rules for deferred annuities and reemployment penalties.

Scope change

The bill expands the scope of the retirement system to include part-time employees in specific eligible groups (police, sheriffs, etc.) who meet strict criteria regarding hiring reasons and work hours, whereas previously only full-time employees were eligible.

ELIGIBILITY

Added a new provision allowing part-time employees to join the retirement system if hired due to a qualifying event (birth/adoption) or serious health condition, limited to a maximum of six years of part-time service.

REQUIREMENT

Established a prohibition preventing part-time employees from performing off-duty work while participating in the system.

Added a requirement for part-time employees to have at least three years of prior credited service before being hired as part-time staff.

DEFINITION

Expanded the definition of 'compensation' to include payments made by third parties for contracted law enforcement, firefighting, and emergency medical services, ensuring these workers receive retirement benefits.

Updated the definition of 'member' to explicitly include part-time employees who meet the new criteria and requirements.

TIMELINE

Set a deadline of July 1, 2031, for part-time employees to enter a written agreement with their employer regarding their part-time status.

Senate Engrossed Version → HOUSE - Amended by PSLE - passed · 3 edits

MINOR

The bill was amended to add new eligibility criteria for part-time public safety employees, requiring them to have a written agreement for a specific qualifying event (like a new child or serious illness) and limiting their participation to a maximum of six years. Additionally, the definition of 'participant' in the defined contribution plan was expanded to include employees hired after 2017 who were previously excluded from the traditional pension system.

Scope change

The bill's scope expanded to include part-time employees in specific eligible groups who meet new conditions, whereas previously they were generally excluded from the defined contribution plan.

ELIGIBILITY

New requirements for part-time employees to qualify for the system, including a written agreement tied to a qualifying event and a six-year participation cap.

The definition of 'participant' was updated to include employees hired after July 1, 2017, who were previously excluded from the defined contribution plan.

DEFINITION

New definitions were added for 'Immediate family member', 'Off-duty work', 'Qualifying event', and 'Serious health condition' to clarify the new part-time employee rules.

House Engrossed Version → Senate Engrossed Version · 5 edits · May 7, 2025

MODERATE

This bill amends Arizona's public safety retirement system statutes to update definitions, adjust pension calculation formulas, and remove a section regarding a retiree pool account for unfunded liabilities. The changes clarify how part-time service is counted, modify how pension benefits are calculated for newer members, and eliminate a specific funding mechanism for post-2017 hires.

Scope change

The bill applies to the Arizona Public Safety Retirement System, affecting current and future members, retirees, and their survivors.

DEFINITION

Updated the definition of 'part-time service' to remove the word 'compensated' before 'periods', clarifying that all compensated part-time service counts toward membership.

Reformatted the definition of 'Regularly assigned to hazardous duty' to improve readability by breaking long paragraphs into shorter lines, though the substantive meaning remains unchanged.

FISCAL

Removed Section 38-846.05, which established a 'retiree pool account' to share actuarial liability for unfunded costs for members hired on or after July 1, 2017. This eliminates the requirement to transfer actuarial present values to this specific pool account.

REQUIREMENT

Adjusted the pension calculation formula for members joining on or after July 1, 2017, to ensure the fraction used to calculate monthly amounts divides actual years of credited service by required credited service, with a cap of twenty years.

TECHNICAL

Reordered and renumbered sections of the bill (e.g., changing Section 6 to Section 6, Section 7 to Section 6, etc.) to correct numbering inconsistencies between the House and Senate versions.

Introduced Version → House Engrossed Version · 6 edits · May 7, 2025

MODERATE

This bill amends Arizona's Public Safety Retirement Systems (PSPRS) statutes to add eligibility for part-time employees, modify benefit calculations, and update definitions related to retirement and disability. The changes expand who can participate in the pension system while maintaining specific requirements for part-time workers.

Scope change

The bill expands eligibility to include part-time employees under certain conditions and modifies how retirement benefits are calculated for various employee categories.

ELIGIBILITY

Added new eligibility criteria for part-time employees to join the PSPRS system, requiring a written agreement with employer, service history, and specific work hour requirements.

Modified the definition of 'member' to include part-time employees meeting new criteria, while maintaining distinctions for full-time employees.

REQUIREMENT

Added restrictions prohibiting part-time employees from performing off-duty work and defined 'qualifying events' for part-time employment eligibility.

DEFINITION

Updated compensation definitions and added new definitions for part-time employment terms including 'immediate family member' and 'serious health condition'.

FISCAL

Modified retiree pool account provisions to include part-time employees who become eligible for disability pensions.

TIMELINE

Set specific implementation dates for part-time employee eligibility, with a written agreement deadline of July 1, 2031 and a maximum six-year service limit.

PSPRS; part-time employment

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