HB 2422 Summary

• Amends Arizona's public retirement systems (PSPRS, CORP, EODC) by adding military service credit provisions for defined contribution plan members, allowing up to 60 months of credited service for active military service with employer and employee contributions.

• Establishes a new deferred compensation plan (457 plan) administered by the PSPRS board, allowing employees to make voluntary salary reductions and employers to make optional contributions as supplemental retirement savings.

• Modifies cancer insurance program eligibility to include coverage extension for retirees based on five months per year of credited service plus actual time spent in deferred or reverse deferred retirement option plans.

• Changes reinstatement rules for employees who receive severance refunds: those rehired by the same employer within 90 days return under their original plan election, while those rehired after 90 days or by different employers are subject to current law rules.

• Adjusts compensation limits for elected officials hired after July 1, 2017 ($110,000) and corrections officers hired after July 1, 2018 ($70,000), with automatic adjustments tied to wage indices in subsequent fiscal years.