SB 1148 Arizona Senate · 57th Legislature - First Regular Session

CORP; defined contribution; membership election

SB 1148 establishes a defined contribution retirement plan (similar to a 401(k)) for new Arizona public safety personnel hired after specific dates, including police, firefighters, and corrections officers. It sets employer and employee contribution rates: for example, new hires after July 2017 pay 9% of salary (paid by employer), while others pay 3-7.5% (also employer-paid). The bill requires employers to cover all contributions directly through payroll deductions rather than employee payments, with rates varying based on hire date and position type. This replaces traditional pension benefits for eligible new employees, directing funds into individual retirement accounts instead.

Issues: ✓ Labor & Employment

Bill status failed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Senate Passage

Mar 2025

House Passage

Governor

Introduced Jan 22, 2025 Last action Mar 19, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → Senate Engrossed Version · 5 edits · Mar 17, 2025

MODERATE

This bill transitions the Arizona corrections officer retirement system from a traditional pension model to a defined contribution plan for new hires, shifting financial risk from the state to the individual. It establishes specific contribution rates for both employees and employers, with the employer paying the full amount on behalf of the employee. The changes also update eligibility dates and definitions to align with this new funding structure.

Scope change

The bill's scope expanded from amending three specific sections to amending two sections and adding a new section to create a new defined contribution plan framework.

ELIGIBILITY

Eligibility for the new defined contribution plan was extended to include employees hired between July 1, 2018, and July 1, 2026, whereas previously only those hired after July 1, 2026, were automatically included.

FISCAL

New mandatory contribution rates were established, requiring employees to contribute between 3% and 9.5% of their salary, with the employer matching and paying these amounts directly into the employee's account.

REQUIREMENT

A new vesting schedule was introduced, granting employees full ownership of their account balance after three years of service, compared to the previous ten-year requirement.

DEFINITION

The definition of 'member' was updated to reflect the new plan structure, distinguishing between employees hired before and after the effective date of the amendment.

SCOPE

The bill's title and scope were broadened to explicitly cover 'defined contributions' rather than just 'defined contribution' plans, reflecting the expanded legislative intent.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 19, 2025

Upper · Passed

DPA

upper

Mar 17, 2025

Upper · Passed

PASSED

upper

Mar 17, 2025

Upper · Passed

DPA

upper

Feb 19, 2025

Upper · Passed

DPA/SE

upper

1 primary · 0 co-sponsors