Corrections Officer Retirement Plan

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Corrections Officer Retirement Plan

• WHAT YOUR LOCAL BOARD NEEDS TO KNOW

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Most Important Responsibility

• Decide all questions of eligibility and service
  credits and determine the amount, manner and time
  of payment of any benefit under the plan.
  (A.R.S. 38-893, section (D) (1).
• Usually tasked to the board secretary or HR
  personnel who have access to personnel and
  payroll records

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How do you determine eligibility for retirement
benefits?

• Need to know what type of benefits are available
• NORMAL
• DISABILITY
• SURVIVOR
• GUARDIAN
• DEATH BENEFIT
• REVERSE DROP

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NORMAL RETIREMENTS

• Member must meet one of the following for normal
  retirement
• 20 years of service, for dispatchers 25 years
• 10 years of service and age 62
• Sum of members age and years of credited service
  equal 80

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DISABILITY RETIREMENTS

• Accidental disability
• A physical or mental condition which totally and
  permanently prevents an employee from performing
  a reasonable range of duties within the
  employees department, was incurred in the
  performance of the employees duties
• Total and Permanent disability
• A physical or mental condition which totally and
  permanently prevents a member from engaging in
  any gainful employment, is the direct and
  proximate result of the members performance of
  their duty as an employee, and is not the result
  of a physical or mental condition or injury that
  existed or occurred before the members date of
  membership in the Plan
• Ordinary
• A physical condition that the local board
  determines will prevent an employee from totally
  and permanently performing a reasonable range of
  duties within the employees department or a
  mental condition that the local board determines
  will prevent an employee from totally and
  permanently engaging in any substantial gainful
  activity

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SURVIVOR BENEFITS

• Surviving spouse of a non-retired member
• Requires two years of marriage at time of death
• Benefit is 40 of deceased members average
  monthly salary
• If the member was killed in the line of duty, the
  benefit is 100 of deceased members average
  monthly benefit compensation
• Surviving spouse of a retired member
• Requires two years of marriage at time of death
• Benefit is 80 of retired members pension at
  time of death

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GUARDIAN BENEFITS

• If there is no eligible surviving spouse,
  surviving unmarried children of a deceased
  retired or active member are entitled to a
  pension benefit until age 18, or age 23 if a
  full-time student, or disabled child if the
  disability began before the age of 23
• The amount is an equal share of the surviving
  spouses pension.

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DEATH BENEFITS

• If an active or inactive member dies and no
  pension is payable, the members beneficiary is
  entitled to receive two times the members
  contributions to CORP
• All beneficiaries now have the option of rolling
  over the taxable contributions to a qualified
  retirement plan or IRA
• The CORP forms are updated (C7 and U3)
• If a retired member dies and there is no eligible
  spouse or child, and there are contributions left
  on account that have not been used to pay the
  pension, the members beneficiary is entitled to
  receive two times the members remaining
  contributions

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REVERSE DROP

• Any member who is eligible for a normal pension
  and who has at least 24 or more years of credited
  service
• Please note dispatchers must have 25 years of
  credited service to enter reverse DROP

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How do you determine the amount?

• Use a period of 36 consecutive months of service
  in which the member received the highest salary
  within the last 120 months of service (Note
  average monthly salary means the aggregate amount
  of compensation paid a member divided by the
  members months of service if the member has less
  than 36 months of service)
• Remember to record prior service on the Form 11
  (our office can provide if your board does not
  keep copies of the letters sent to your employer)
• Remember to record any leave without pay and
  industrial in members record on the Form 11

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WHAT IS SALARY?

• Base salary or base wages
• Shift differential pay
• Holiday pay
• Salary means the base salary, shift
  differential pay and holiday pay paid to a member
  in a designated position for personal services
  rendered to a participating employer that is paid
  on a regular monthly, semi-monthly, or biweekly
  payroll basis. Salary includes amounts that are
  subject to deferred compensation or tax shelter
  agreements. Salary does not include payment for
  any remuneration or reimbursement other than as
  prescribed by this paragraph. For the purposes
  of this paragraph, base salary means the amount
  of compensation each member is regularly paid for
  personal services rendered to an employer before
  the addition of any extra monies, including
  overtime pay, shift differential pay, holiday
  pay, payments for the sale of compensatory time,
  fringe benefit pay, and similar extra payments.
  (A.R.S. 38-881.33)

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DEADLINES FOR RETIREMENT PAPERWORK

• Submit retirement paperwork for all benefits by
  the 10th of each month
• Ensure paperwork is filled out correctly and
  completely
• Fill in the final contribution amount (estimate
  if needed) on the Form 11
• Check for all signatures by member and local
  board/employer
• Include all supporting documents
• Tax forms need to be marked correctly (Note An
  Accidental Disability, Total and Permanent
  Disability under 20 years is tax free)
• Copy of minutes need to be submitted with all
  disability applications

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SUGGESTIONS

• Submit estimates (FORM 11) for review before the
  member signs paperwork
• Print out the statutes and retirement instruction
  manual from the website for reference
• Encourage all local boards to use the electronic
  spreadsheets to process retirements versus
  manually filling in each individual form

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SPREADSHEETS

• See handout for Input instructions
• Just fill in the Input Sheet and the rest of the
  forms are filled in automatically
• Use for all types of retirements
• Ordinary disability will be available later this
  year
• Save the file and email to our Benefits Staff to
  review the estimate and upload the retirement
  into our system (Dont forget to mail in the
  original signed forms)
• Bonnie_at_psprs.com
• Tara.Smith_at_psprs.com
• Joann.Lowey_at_psprs.com
• Della_at_psprs.com

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Whats happening?

• Document Scanning
• Bar Codes on forms
• Members handbook
• IT Project - Member/Retiree Information on Web
• Retiree Newsletter
• Member contribution rate is 7.96

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WEBSITE RESOURCES www.psprs.com

• General
• Statues, Summary of Benefits, FAQs, Legislation
• Members
• Retirement Estimate, Common Forms, Preparing for
  Retirement, Insurance Information, DRO
  information forthcoming
• Employers
• Forms, Spreadsheets, Oath of Office
• Slides
• 2009 Training presentations, Disability Slides

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BENEFITS STAFF

• Phone number 602-255-5575
• Bonnie Brown (Benefits Manager)
• Joann Lowey (DROP and CORP)
• Tara Smith (Retirements/CORP)
• Della Hieb (Retirements/ CORP)

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