Under the statutes governing the Public Safety Personnel Retirement System (PSPRS), and the Arizona State Retirement System (ASRS), a retired PSPRS member who returns to work with an employer participating in the ASRS and receives PSPRS pension payments during such employment is not exempt from membership in ASRS, if the PSPRS retiree otherwise satisfies the ASRS membership requirements during such period of re-employment.
In addition, these membership requirements apply to retirees from the Correctional Officers Retirement Plan (CORP) and the Elected Officials Retirement Plan (EORP).
ASRS membership is a mandatory condition of employment for all employees who meet the eligibility and membership criteria defined in statutes (A.R.S. § 38-711(23), § 38-727) and rules (Arizona Administrative Code Title 2, Chapter 8, Article 10). If a PSPRS retiree cannot contribute to PSPRS - which they can't do once they’ve retired - but they meet ASRS eligibility, then they are required to participate in ASRS.
In conclusion, if the employee is meeting ASRS membership eligibility requirements and is no longer participating in PSPRS, CORP, or EORP (i.e., earning service credit and paying contributions), they are required to participate in the ASRS. In addition, the ASRS employer would be required to pay an Alternate Contribution Rate (ACR) directly to PSPRS. For more information on the ACR for PSPRS, visit https://www.psprs.com.
Written by William Roberts, Employer Relations
Published November 2023
