With the enactment of SB1428, beginning July 1, 2017, Tier 2 members (those who became members on or between 1/1/2012 and 6/30/2017) will have coverage in the Public Safety Personnel Retirement System (PSPRS) Defined Contribution (DC) Retirement Plan.  Your participation and contributions into the DC plan will be limited to those periods in which you are in a PSPRS-covered position that is not covered by the Old‐Age and Survivors Insurance Trust Fund (i.e., Social Security).  Your participation in the DC plan during those periods will be mandatory unless you have elected to opt‐out of participation through an acknowledgement process being conducted by PSPRS.
Tier 2 members will have the opportunity to elect to opt‐out via your Member’s Only Account located on the PSPRS website at www.psprs.com. Since your Member’s Only Account is your primary way of communicating with PSPRS, we strongly encourage you to visit the PSPRS website and create your own personal account as soon as possible.  For assistance with accessing your Member’s Only Account, please contact PSPRS directly at (602) 255-5575, Option 0.
Step 1: Understanding your participation in the DC plan
Participation in this DC program is supplemental to your already-required contributions and participation in the PSPRS Defined Benefit (DB) plan.  PSPRS will be sending direct communications to all Tier 2 members regarding plan set-up and benefits. 
The contribution for the DC plan is set within statute at 3% of your pensionable compensation in addition to the DB contribution amount.  Additionally, employers will also be contributing into the DC plan on your behalf.  For a limited period, the employer contribution will be set at 4% based on a tier structure of when you began participation in PSPRS.
Employer Contribution Rate
Calendar Year Hired
4% Contribution Rate
3% Contribution Rate
Beginning 7/1/2017 through 06/30/2024
Beginning 7/1/2024 and thereafter
Beginning 7/1/2017 through 6/30/2023
Beginning 7/1/2023 and thereafter
Beginning 7/1/2017 through 6/30/2022
Beginning 7/1/2022 and thereafter
Beginning 7/1/2017 through 6/30/2021
Beginning 7/1/2021 and thereafter
Beginning 7/1/2017 through 6/30/2020
Beginning 7/1/2020 and thereafter
Up to June 30, 2017
Beginning 7/1/2017 through 6/30/2018
Beginning 7/1/2018 and thereafter
Step 2: Making Your DC Participation decision (beginning April 2017)
Tier 2 members now have the opportunity to make their op‐out election electronically via the Member’s Only Portal.  That decision must be provided to PSPRS by June 30, 2017.
Remember: You are required to submit your opt‐out election directly with PSPRS.  All inquiries should be directed to the PSPRS Administrative Office.
Step 3: Collection and Reporting of Results to Employers (Beginning early July)
Once the initial opt‐out period closes (June 30, 2017), PSPRS will send reports to those employers immediately affected by this new DC plan (those who do not have their members contribute to Social Security).
Step 4: Enrollment in the DC Program
If you did not opt‐out of the DC program, prior to participation and contributions into the DC program, you will need to complete vendor-specific enrollment documents.  Further information will be sent from PSPRS regarding your enrollment and contribution into the program once the vendor has been finalized.
Extension of OptOut Period & Appeal Process
PSPRS will provide for an extended opt‐out period for PSPRS members who became members into PSPRS in May & June 2017.
·         This period will only extend until August 31, 2017
·         The Member will still need to make their election via the Member’s Only Portal, or contact the PSPRS Administrative Office to make other arrangements.
·         The Administrative Office will report to employers immediately affected by this new DC plan only those members who have elected to opt‐out. Again, non‐Social Security employers, including the City of Phoenix, assume automatic enrollment of their PSPRS membership unless the PSPRS office has reported otherwise.
PSPRS will also provide for an “Appeal Period,” under very limited circumstances:
·         Only available to those Tier 2 members who were automatically defaulted into the DC plan.
·         You must contact PSPRS directly to submit written appeal.
·         Reason for appeal must be for extenuating circumstances and will be reviewed on a case by case basis.
o   Example: member out on military leave during opt‐out period.
o   Simply forgetting to take action will not be acceptable reason.
·         Appeal must be received by the PSPRS by August 31, 2017.
The PSPRS office has stated that
no exceptions will be made.
Action Items:
1.       Go on www.psprs.com as soon as possible and create your members-only account.
2.       Review the available information and decide whether to stay in the DC retirement plan.
3.       If you do not want to participate in the DC retirement plan, you must go on the members-only portal, login and submit your election to opt-out of the DC retirement plan by June 30, 2017. Those members who became members in May or June of 2017 have until August 31, 2017.
For assistance with accessing your Member’s Only Account, please contact PSPRS directly at (602) 255-5575, Option 0.