AZ SB1268

Extends the deferred retirement option plan (DROP) participation period from 60 to 84 consecutive months for members who became members before January 1, 2012, are at least 51 years old, and have at least 24.5 years of credited service.

Transfers accumulated DROP account balances to a defined contribution plan after the first 60 months for members extending participation beyond 60 months, with subsequent benefits deposited into the defined contribution account during the additional 24-month period.

Provides zero percent interest on DROP participation accounts during the interim period between the initial 60-month period and the transfer to the defined contribution plan.

Allows employers to approve up to an additional 24-month extension of DROP participation for current participating members, with this employer approval authority set to expire December 31, 2027.

Requires the Public Safety Personnel Retirement System board to submit recommendations by December 31, 2022 on retention and recruitment measures for members hired between January 1, 2012 and July 1, 2017, and for members hired on or after July 1, 2017.