SB 1442 Summary

• Creates a defined contribution plan option for corrections officers hired on or after July 1, 2018, allowing eligible employees in designated positions to elect between the traditional defined benefit plan and the new defined contribution plan within 90 days of employment.

• Establishes different contribution rates and vesting schedules for new defined contribution plan participants, with employer contributions of 3-5% and member contributions ranging from 3-7% depending on participant classification.

• Modifies normal retirement eligibility for corrections officers hired after July 1, 2018 to require age 55 with 10 years of credited service, with pension calculated at 1.25-2.25% per year of service based on service length.

• Adds probation and surveillance officers as eligible for the corrections officer retirement plan and creates a defined contribution plan disability program with specified death and disability benefits.

• Implements cost-of-living adjustments capped at 2% annually for members hired before July 1, 2018, and conditional adjustments (1-2%) for members hired after July 1, 2018 based on plan funding ratio thresholds of 70-90%, effective only if Constitution of Arizona is amended per SCR 1023.