Public Safety Personnel Board supports cancer insurance funding changes in two bills

In a pivotal meeting of the Arizona Senate Finance Committee on March 3, 2025, lawmakers discussed two significant pieces of legislation aimed at enhancing the Public Safety Personnel Retirement System (PSPRS) and its cancer insurance program. The atmosphere was charged with purpose as committee members gathered to address the pressing needs of public safety personnel.

The first bill, House Bill 2013, seeks to amend the existing cancer insurance program for public safety workers. Diane McAllister, representing the PSPRS, explained that the bill allows the board to utilize up to 10% of the total claims paid over the past five years to administer the cancer insurance program. This change is designed to provide a more accurate basis for administrative expenses, moving away from a system that relied on fluctuating investment deposits. With a healthy reserve of $33 million, the PSPRS aims to ensure that the funds are used effectively to support the needs of those who serve in public safety roles.

The committee unanimously supported HB 2013, recognizing its importance in safeguarding the health and well-being of first responders who face increased risks of cancer due to their professions. The bill passed with a vote of 6-0, reflecting a strong consensus on the need for enhanced support for public safety personnel.

The second piece of legislation, House Bill 2015, addresses the employer contribution rates for correction officer retirement plans. This bill proposes to eliminate the minimum contribution rate for employers and allows for the transfer of excess assets from accounts with no beneficiaries to help cover future liabilities. McAllister emphasized that this change would enable employers to utilize surplus funds more effectively, reducing unnecessary taxpayer contributions while ensuring that future liabilities are adequately funded.

As the discussion unfolded, committee members raised questions about the implications of these changes on funding statuses and bond markets. McAllister reassured them that the proposed adjustments would not negatively impact the overall funding status or contribution rates, aiming instead to streamline financial management within the system.

With both bills poised for further consideration, the meeting underscored the Arizona Legislature's commitment to supporting public safety personnel and ensuring the sustainability of their retirement and insurance programs. As the session progresses, the outcomes of these discussions will likely have lasting effects on the financial landscape for Arizona's public safety workforce.