HB 2431 Summary

• Modifies normal retirement date requirements for Public Safety Personnel Retirement System (PSPRS) members hired on or after July 1, 2017, eliminating the age requirement and allowing retirement after completion of 15 years of credited service alone.

• Establishes separate contribution structures for members hired on or after July 1, 2017, with employers and members each paying 50% of normal costs and unfunded accrued liability through either a consolidated public safety employer risk pool or individual employer accounts.

• Implements a public safety wage index composed of 26 representative employers across three size categories to adjust annual compensation limits for newer members every three fiscal years, beginning in fiscal year 2020-2021.

• Reduces the annual compensation limit for members hired on or after July 1, 2017 to $110,000 (versus $200,000 for earlier members), subject to adjustment based on the public safety wage index.

• Repeals section 38-845.03 of Arizona Revised Statutes.