SB 1148 — CORP; defined contribution; membership election

BillSenate Number:Engrossed CORP;

S.B.defined contribution;

1148membership Payneelection Floor(now: Amendment Reference to:

PublicCORP; Safety Committee Amendment Amendment drafted by:

Legdefined Councilcontributions) FLOORState AMENDMENTof EXPLANATIONArizona 1.Senate Fifty-seventh Legislature First Regular Session SENATE BILL 1148 AN ACT AMENDING SECTIONS 38-865 AND 38-867, ARIZONA REVISED STATUTES;

RequiresRELATING allTO CorrectionsPUBLIC OfficerRETIREMENT RetirementSYSTEMS. Plan (CORP) members hired on or after July 1, 2026, rather than only county detention officers, to contribute 7.5 percent of gross pensionable wages as the employee contribution rate, excluding judiciary, probation and surveillance officers.

2.(TEXT OF BILL BEGINS ON NEXT PAGE) - i - S.B.

Requires1148 CORPBe employersit toenacted payby the increasedLegislature employerof contributionthe rateState based on years of serviceArizona: for all CORP members hired on or after July 1, 2026, rather than only county detention officers, and excluding judiciary, probation and surveillance officers.

3.Section 1.

Makes conforming changes.

Amendment explanation prepared by Molly Graver 03/17/2025 Fifty-seventh Legislature Payne First Regular Session S.B.

1148 PAYNE FLOOR AMENDMENT SENATE AMENDMENTS TO S.B.

1148 (Reference to PUBLIC SAFETY S/E Committee amendment) Amendment instruction key:

[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or previously enacted session law.

[Green underlining in brackets] indicates text added to new session law or text restoring existing law.

[GREEN STRIKEOUT IN BRACKETS] indicates new text removed from statute or previously enacted session law.

[Green strikeout in brackets] indicates text removed from existing statute, previously enacted session law or new session law.

<<Green carets>> indicate a section added to the bill.

<<Green strikeout in carets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:

Strike everything after the enacting clause and insert:

"Section 1.

Senate(a) AmendmentsA tomember S.B.as defined in section 38-842, paragraph 31, subdivision (a), excluding subdivision (a), item (vi), who is one of the following:

1148 (a) A member as defined in section 38-842, paragraph 31, subdivision (a), excluding subdivision (a), item (vi), who is one of the following:

(i) An employee who is hired on or after July 1, 2018 [ANDAND BEFORE JULY 1, 2026],2026, who is not in a designated position as defined in section 38-881, paragraph 13, subdivision (g) and who was not an active, an inactive or a retired member of the corrections officer retirement plan or a member of the corrections officer retirement plan with a disability on June 30, 2018.

(ii)- An1 employee- whoS.B. is hired on or after July 1, 2018, who is in a designated position as defined in section 38-881, paragraph 13, subdivision (g), who makes the irrevocable election pursuant to section 38-881.01 to participate solely in the defined contribution plan established pursuant to this article and who was not an active, an inactive or a retired member of the corrections officer retirement plan or a member of the corrections officer retirement plan with a disability on June 30, 2018.

(iii)1148 AN(ii) EMPLOYEEAn WHOemployee ISwho HIREDis ONhired ORon AFTERor JULYafter July 1, 2026,2018, WHOwho ISis [NOT]in INa Adesignated DESIGNATEDposition POSITIONas ASdefined DEFINEDin INsection SECTION 38-881, PARAGRAPHparagraph 13, SUBDIVISIONsubdivision [(a),(g), ITEMwho (i)][(g)]makes ANDthe WHOirrevocable WASelection NOTpursuant ANto ACTIVE,section AN38-881.01 INACTIVEto ORparticipate Asolely RETIREDin MEMBERthe OFdefined THEcontribution CORRECTIONSplan OFFICERestablished RETIREMENTpursuant PLANto ORthis Aarticle MEMBERand OFwho THEwas CORRECTIONSnot OFFICERan RETIREMENTactive, PLANan WITHinactive Aor DISABILITYa ONretired JUNEmember of the corrections officer retirement plan or a member of the corrections officer retirement plan with a disability on June 30, 2026.2018.

(iii) AN EMPLOYEE WHO IS HIRED ON OR AFTER JULY 1, 2026, WHO IS NOT IN A DESIGNATED POSITION AS DEFINED IN SECTION 38-881, PARAGRAPH 13, SUBDIVISION (g) AND WHO WAS NOT AN ACTIVE, AN INACTIVE OR A RETIRED MEMBER OF THE CORRECTIONS OFFICER RETIREMENT PLAN OR A MEMBER OF THE CORRECTIONS OFFICER RETIREMENT PLAN WITH A DISABILITY ON JUNE 30, 2026.

-2-1. Senate Amendments to S.B.

1148 1.

C.- 2 - S.B.

1148 C.

-3-4. Senate Amendments to S.B.

1148BEGINNING 4.JULY 1, 2026, FOR A PARTICIPANT AS DEFINED IN SECTION 38-865, PARAGRAPH 7, SUBDIVISION (b), ITEM (i) OR (iii), TEN PERCENT.

BEGINNING JULY 1, 2026, FOR A PARTICIPANT AS DEFINED IN SECTION 38-865, PARAGRAPH 7, SUBDIVISION (b), [WHO IS IN A DESIGNATED POSITION AS DEFINED IN SECTION 38-881, PARAGRAPH 13, SUBDIVISION (a),] ITEM (i) [OR (iii)], THE FOLLOWING PERCENTAGES BASED ON THE PARTICIPANT'S YEARS OF SERVICE:

(a) UP TO THREE YEARS OF SERVICE, TEN PERCENT.

(b) THREE YEARS BUT NOT MORE THAN TEN YEARS OF SERVICE, SEVENTEEN AND ONE-HALF PERCENT.

(c) TEN YEARS BUT NOT MORE THAN FIFTEEN YEARS OF SERVICE, TWENTY PERCENT.

(d) FIFTEEN OR MORE YEARS OF SERVICE, TWENTY-TWO AND ONE-HALF PERCENT.

I.- 3 - S.B.