AOC Updates


This page will provide you with updated information regarding on-going AOC actions and the implementation of the statute.  As progress is made, and specific tasks are accomplished, we will provide the updated information here. 

 checkmark picMay 26, 2011- Legislation Summary - Senate Bill 1609
 

SUMMARY OF PLAN MODIFICATIONS ASSOCIATED WITH SENATE BILL 1609

 

The 50th Legislature – First Regular Session adjourned April 20, 2011. Senate Bills 1317 and 1609 were signed into law. Following is a summary of statutory changes to Corrections Officer Retirement Plan.

 
CORP

 

Existing Members

 

• Maintain high 3 FAC (Final Average Compensation)

• Maintain refund provision which includes employer match of contributions at percentage tied to

  years of service

• Maintain normal retirement requirements (20 years or 25 years for a dispatcher; 62 years if age

  with 10 years of service; sum of age and years of service equals 80)

• Contribution rates for members:

 

1.  Through June 30, 2011, 8.41% of salary, except dispatchers 7.96%

2.   For fiscal year 2011-2012 and each fiscal year thereafter, 8.41%, except dispatchers

7.96%, OR a 50/50 split of the actuarial required contribution between employer/

employee, whichever is less, with a floor of 7.65% for employees and 6% for

employers. Member contribution rate increases retro to July 1, 2011. Additional

member contributions do not reduce the employer contribution because there is a

“maintenance of effort” provision.

 

• Alternate contribution rate (ACR) is required from the employer for any member who retires

and returns to work in a position normally covered by the plan from which the member

retired. The ARC is set annually by the actuary and is that portion of the total actuarial required

contribution that is allocated to the amortization of the unfunded actuarial accrued liability

(UAAL), with a minimum rate of 6%.

• Dispatcher contribution rate is .45% less than the non-dispatcher rate until the CORP is 100%

funded then rates are equal thereafter

• After the effective date of the bill, a member must have 10 years of service to redeem up to 5 years

of prior public and up to 5 years of prior military service.

• From and after 12/31/2015, legislature may enact permanent one-time benefit increases

• Effective July 1, 2013 and thereafter, benefit increases for retirees and survivors will be based on

the following:

 

1. If the ratio of the actuarial value of assets to liabilities is 60-64% AND the total return is

more than 10.5% for the prior fiscal year, 2% maximum increase for all eligible retirees

and survivors

2. If the ratio of the actuarial value of assets to liabilities is 65-69% AND the total return is more than 10.5% for the prior fiscal year, 2.5% maximum increase for all eligible

retirees and survivors

3. If the ratio of the actuarial value of assets to liabilities is 70-74% AND the total return is

more than 10.5% for the prior fiscal year, 3% maximum increase for all eligible retirees

and survivors

4. If the ratio of the actuarial value of assets to liabilities is 75-79% AND the total return

is more than 10.5% for the prior fiscal year, 3.5% maximum increase for all eligible

retirees and survivors

5. If the ratio of the actuarial value of assets to liabilities is 80% or more AND the total return is more than 10.5% for the prior fiscal year, 4% maximum increase for all eligible retirees and survivors

 

Effective July 1, 2013 and thereafter, a COLA is available only if the fund earns more than 10.5% for the prior fiscal year. The portion of the return in excess of 10.5% is used to cover the actuarial present value of the percentage increase in benefits for all those eligible to receive it. If the excess return is insufficient to support the percentage increase as set forth above, then the increase will be limited to that percentage that can be supported by the excess return available. Any excess return that is not needed to support the maximum percentage benefit increase in any year is allocated to the Plan’s assets. There is no longer any “Reserve” for future benefit increases. This new benefit adjustment mechanism will not apply until all the assets remaining in the existing Plan Reserve are exhausted.

 

Effective May 31, 2011, NO EXCESS INVESTMENT EARNINGS SHALL BE TRANSFERRED TO THE PLAN RESERVE (the “COLA ACCOUNT”).

 

• A member who received a refund and is subsequently re-employed by an employer or a member who redeems prior service is subject to the terms of the plan in effect at the time of the most recent re-employment. However, a member that transfers service from one employer to another employer retains the terms of the Plan in effect from the previous employment

 
NEW HIRES ON OR AFTER JANUARY 1, 2012

 

• High 5 FAC (Final Average Compensation)

• If a member terminates employment for any reason other than death or retirement, the member

can withdraw his/her accumulated contributions less any benefit payments already received

or any amount the member owes the Plan (but no employer match of refund contributions) plus

interest at a rate determined by the PSPRS Board

• 25 years of service AND age 52.5

• Member contribution rate is the same as that for existing members

• 25 years of service: Receive a monthly amount that equals 62.5% of the member’s average

monthly benefit compensation; but if less than 25 years of “credited” service, reduced 4% for each

credited year under 25 yrs. If a member has more than 25 years of service, the monthly amount

increases by 2.5% of the average monthly benefit multiplied by number of years over 25 with a

maximum benefit amount equal to 80% of the average monthly compensation

• In the case of a member who became a member on or after January 1, 2012, post-retirement

adjustments in benefits will be the same as outlined above except that the member:

1. Must be 55 years of age or older on July 1 and receiving benefits

2. If under 55 years of age on July 1, the member must have been receiving an accidental

disability benefit for the two preceding years

3. In the case of a survivor who is under 55 years of age on July 1 and who is the survivor of

a member who became a member on or after January 1, 2012 and who was thereafter

“killed in the line of duty,” the survivor must have been receiving survivor benefits for the

two preceding years

• 25 years of service at age 52.5 or 62 years of age with 10 years of service

• Contribution rates same as existing members

 
 checkmark picApril 1, 2011- CORP Local Board Member Election
The term of office for current board member, Jason Hathcock, will expire July 1, 2011.  As a result, The Corrections Officer Retirement Plan (CORP) Local Board for the Superior Court will be conducting an election to fill this upcoming vacancy.  


Probation, Surveillance and Juvenile Detention officers will be given the opportunity to nominate one of their peers as a representative to serve a four-year term of office on this Board. 


Nomination ballots will be mailed out via US mail to each CORP member in mid April.  To participate in this election, a current address is necessary.


Please contact your County Personnel Department by April 10, 2011, to ensure that we have a current mailing address on file.
 


Returned nominations will be tallied and the names of the top 10 individuals who received the most nominations will be placed on a voting ballot which will be mailed to members to vote for the individual of their choice.


If you have any questions or need assistance, contact the CORP Local Board Office at (602) 452-3650 or via e-mail at
[email protected]

 
 checkmark picFebruary 17, 2011 - New Local Board Procedures for Processing Retirement Applications
Notification has been received from the Board of Trustee’s (PSPRS) regarding time frames associated with the payment of  retirement benefits.  Legal counsel for the Board of Trustees is now requiring that all retirement paperwork and  the approval of payment of benefits be received by PSPRS by the 10th of each month.  To comply with this request, effective March 1, 2011, the Local Board will be adopting the following procedures:


         • To receive a benefit check the last working day of the month in which the retirement 
            becomes effective, requests for retirement must be received by the CORP office 60 days
            prior to the date of retirement.

           EXAMPLE:
           Date of Retirement                     May 31, 2011 (Application in CORP office by March 31, 2011)
           Effective Date of Retirement       June 1, 2011
           Date of Benefit Payment             June 30, 2011

         • Requests received less than 60 days will result in the request being processed the
            following month after the effective date of retirement.  This will result in a delay in the
            payment of the retirement benefit.

            EXAMPLE:
            Date of Retirement                     May 31, 2011
            Effective Date of Retirement       June 1, 2011
            Date of Benefit Payment             July 29, 2011 (retro check)

 
 checkmark picNovember 8, 2010 - CORP Member Services

To assist in directing members of CORP to the appropriate retirement plan office for service, the CORP Local Board is providing the attached  list of services offered to CORP members. (To view click here)

 
 checkmark picJuly 27, 2010 - COLA
 As of June 30, 2010, the plans had a preliminary investment return (gross of fees) of 13.92%. We do not have our final fiscal year end returns (net of fees) as of June 30, 2010 available yet. However, it appears that there will be sufficient assets flowing into the escalator account (COLA account) to pay at the statutory maximin for at least one more year for eligible CORP retirees and survivors. As a result, eligible retirees will receive a 4% COLA in their July 30th pension.
 
checkmark picJanuary 8, 2010 - Sign up for CORP Updates
Following are sign up instructions to receive the latest CORP updates via email

Send email to:
[email protected]

Body of email must contain the following:
Subscribe corpmembernotification

Member will receive an email asking to confirm the “subscribe” request, to confirm the request member must
reply to this email (blank reply is fine)

By signing up, you will receive email updates anytime new statues, minutes, agenda's and or other
new CORP information is posted on the CORP website.
 
checkmark picAugust 4, 2009 - Member's 2009 Annual Statements
CORP Members' 2009 Annual Contribution Statements have been processed and e-mailed to County Payroll Departments for distribution to members.  Employees who have set up personal accounts can access this information at any time throughout the year via the PSPRS Website at www.psprs.com.  Questions or concerns regarding your personal statement should be directed to [email protected], Members' Service Department.
 
checkmark picMarch 26, 2009 - Pre-Retirement Seminars
Effectively immediately! As a result of budget and system changes within the Arizona Department of Administration (ADOA) training unit, outside training, which includes the pre-retirement seminars, will no longer be available to County Probation employees. ADOA has advised that they are currently working on an improved registration process and may, in the future, be able to resume offering outside training. The CORP Administrative office will continue to follow up and post any updated information regarding the start up of these seminars as it is received. Please be advised that the CORP office is your primary point of contact to discuss your individual retirement needs. To receive personal individual attention regarding your retirement, we will be happy to schedule a meeting with you in person or via telephone.  You may contact us by calling (602) 452-3650 or e-mailing [email protected].
 
checkmark pic March 5, 2008 - CORP Annual Report - FY June 30, 2007
The 21st Comprehensive Annual Financial Report of the Corrections Officer Retirement Plan for Fiscal Year Ending June 30, 2007 is now available for viewing.
 
checkmark pic February 12, 2008 - Member Information Fact Sheet

ACCESS TO CORP MEMBER CONTRIBUTION INFORMATION ONLINE

CORP will provide an annual statement to each member after June 30th of each year. Members can access their Member Contribution Statement online at any time:

• Go to www.psprs.com (Public Safety Personnel Retirement System)

• Next, click on Active Members Only on the left side of the webpage under PSPRS Applications heading.

• Follow the instructions. When asked to locate your employer, select ADMIN. OFFICE OF THE COURT. If you have any problems accessing your statement, please contact the Active Member Department at (602) 255-5575.

Some members have expressed a concern regarding the availability of “financial advisors” through CORP. There are no “financial advisors” through CORP or ASRS for that matter. Any member with questions regarding their estimated retirement benefit, CORP membership, or issues for decision by the Local Board should contact the CORP Retirement Specialist, Lu McLendon, at (602) 452-3650. If Lu cannot answer your questions, then she will refer you to someone who can at CORP/PSPRS.  For the most current information regarding the CORP Local Board, including board meeting agendas and minutes, visit our website at www.supreme.state.az.us/hr/corp.  

 
checkmark pic February 15, 2007 - Joinder Agreement signed, Board Members Appointed
On February 8th, the CORP Joinder agreement was signed between the AOC and the CORP Fund Administrator. A copy of the agreement is posted on the website.

The agreement has an effective transfer date of July 1, 2007. All qualifying officers must complete either a CORP application form or an opt-out form prior to that date. These forms will be posted on this website at a later date and the completion of these forms will be coordinated through your individual probation departments.

The initial meeting of the CORRECTIONS OFFICER RETIREMENT PLAN LOCAL BOARD FOR THE SUPERIOR COURT was held on February 8th. The initial members of the board, appointed by the Chief Justice, are Mr. James Bruner, Mr. Phillip Hanley, and Mr. Kevin Kluge. Biographical information on these board members will be posted on this website as well as notices of future board meetings. In accordance with statute, two additional board members will be elected by the membership after the July 1, 2007 transfer date.


JOINDER AGREEMENT

BOARD MEMBERS APPOINTED

 

checkmark pic December 1, 2006 - Draft Joinder Agreement

A copy of the draft Joinder Agreement has been mailed to the Chairperson of each County’s Board of Supervisors and the Presiding Judge in each County.  The counties are asked to submit any questions or comments regarding the Joinder agreement back to the AOC by January 12, 2007.

The effective date on the agreement is July 1, 2007. This transfer date simplifies the process of transferring funds from ASRS to CORP.  It also simplifies the transfer of Purchase Service Agreement (PSA)  funds from ASRS to CORP It will also give those with PSAs more time to accumulate credit for prior years

Highlights of the agreement include:

All credited service in ASRS as of the date of transfer (July 1, 2007) will move to CORP on a one-to-one basis with the employer covering any and all expenses. 

For those with PSAs, all service purchased and credited in ASRS as of the transfer date (July 1, 2007) will move to CORP on a one-to-one basis with the employer covering any and all expenses.   For those with PSAs extending past the transfer date, the employee will continue to make payments to ASRS in accordance with their contract.  On an annual basis (on or about July 1 each year)  the employee will have the option of leaving their service credits in ASRS, transferring the ASRS credits for partial credit in CORP, or paying the cash difference needed to achieve a one-to-one service credit transfer from ASRS to CORP.

A link to the Draft Joinder Agreement is provided below and on the Home Page of this website.

Draft Joinder Agreement
 

checkmark pic  November 17, 2006 - Actuarial Valuation Completed

A.R.S. 38-902 requires that before a Joinder agreement is signed, an actuarial valuation must be completed to determine the estimated cost to the employer of participation in the plan. That actuarial valuation has been completed and shows that the estimated employer contribution rate for this year will be less under CORP (8.71% under CORP compared to 9.1% under ASRS). Estimates are that the CORP employer contribution rate will also continue to be lower next year (estimated at 9.25% for CORP and 9.6% for ASRS).


The current employee contribution rate under CORP is 8.5% and is expected to go down to 7.96% next year.

checkmark pic October 12, 2006, New CORP Coordinator

We are pleased to announce that Ms. Lula (Lu) Mclendon has been hired to serve as the CORP coordinator.  Lu handled the day-to-day operation of the Department of Corrections CORP program since 1990 and is very knowledgeable of the program.  With Lu's hiring, the CORP function will move to the Administrative Service Division of the AOC where it will reside in the Human Resources Department.  We are pleased to have her join our team.

Lu's e-mail address is: [email protected]

Telephone Number: 602.452.3650

Please join us in welcoming Lu to the Court family.

 

checkmark pic September 12, 2006, CORP Medical Exam

In order to avoid any confusion regarding the section included in A.R.S. 38-884 quoted in the July 19, 2006 Update, which states staff transferring to CORP "shall undergo a medical exam", we want to reiterate the language of the statute that states:

"Medical examinations conducted under this article shall not be conducted or used for purposes of hiring, advancement, discharge, job training or other terms, conditions and privileges of employment unrelated to receipt or qualification for pension benefits or service credits from the fund."

This specific exam for staff transferring into CORP is not intended, nor will it be used, as a screening or qualifying tool for membership in CORP.  For an explanation of the purpose, please see the July 19, 2006 Update below.

checkmark pic July 19, 2006, CORP Medical Exam

In discussions with CORP, it has been determined that under existing Statute (A.R.S. 38-884) probation and detention staff transferring to CORP "shall undergo a medical exam".  Subsection B of the statute states:

"The purpose of the medical examination authorized by this section is to identify a member's physical or mental condition or injury that existed or occurred before the member's date of membership in the plan.  Any employee who fails or refuses to submit to the medical examination prescribed in this section is deemed to waive all rights to disability benefits under this article.  Medical examinations conducted under this article shall not be conducted or used for purposes of hiring, advancement, discharge, job training or other terms, conditions and privileges of employment unrelated to receipt or qualification for pension benefits or service credits from the fund.  This subsection does not affect or impair the right of an employer to prescribe medical or physical standards for employees or prospective employees".

Discussions are ongoing regarding how this component of the transition will be implemented.  We will post updates as details become available.  Click Here to view A.R.S. 38-884.

 

 checkmark pic JUNE 16, 2006 

On June 16, 2006, Dave Byers, AOC Administrative Director and select AOC staff met with CORP fund manager, Jim Hacking and CORP attorney, Marc Lieberman, including Lou Ebratt, President of the Probation Officer's Association to discuss the issues, tasks, and plan reasonable time frames to complete the transition from Arizona State Retirement System (ASRS) to CORP.

 The following are the major elements of the development plan:

  • Provide employee data to ASRS, who will conduct an actuarial valuation study as required by statute.  Each probation department and juvenile detention center will be requested to submit employee information or submit the employee information at the Chief's Meeting in mid-July.  Based on earlier estimates on a large sample of employees, financial obstacles are not anticipated.

  • AOC staff and CORP will collaborate to establish an education and information dissemination campaign, along with the use of this website to ensure that questions from staff are answered in a timely, open and easily accessed manner.  Meetings will be facilitated with county managers, CORP and ASRS staff to ensure communication among all who are affected by the change in the system and process.

  • AOC will develop and approve a joinder agreement with CORP, which is required by the new legislation.  We anticipate timely approval.

  • A determination will be made regarding staffing and funding of the Judiciary "Local Board", including member appointments, elections and training for Board members as required by statute.  Research will be conducted regarding how other members of CORP have met the transitioning challenges.

  • Provide a mechanism to give officers the option to "opt out" of CORP prior to the effective date of the transition.

  • Collaborate with departments to organize a second collection of employee data before the effective transition date.  The second collection will provide CORP and ASRS with a final list of employees transitioning to CORP.