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SURVIVOR BENEFITS Survivor benefits are payable to an eligible spouse/child of a deceased, retired or a deceased, non-retired employee of ADC who is a CORP member. An eligible beneficiary is normally a surviving spouse. However, if there is no eligible surviving spouse, any eligible surviving children are considered as eligible beneficiaries and paid equal shares of the benefit which would have been payable to the surviving spouse. Benefits Payable to the Surviving Spouse of a Member Who Dies Before Retirement (Active Member) The surviving spouse of a member who dies before retirement is entitled to receive a pension for life if each of the following conditions are met:
The amount of a surviving spouse's benefit is equal to forty percent (40%) of the amount of the average monthly salary the deceased member was earning at the time of death. Benefits Payable to the Surviving Spouse of a Member Killed in the Line of Duty (Active Member) The same conditions as above apply for a surviving spouse of a member who is killed or dies from injuries suffered in the line of duty. The amount of the surviving spouse’s monthly benefit is equal to one hundred percent (100%) of the deceased member’s average monthly benefit. Benefits Payable to the Surviving Spouse of a Deceased Retired Member The same conditions as above also apply to a spouse of a deceased retired member with the following exception: The amount of the surviving spouse's benefit is equal to four-fifths (80%) of the amount of the retired member's pension at the time of death. Guardian/Child's Benefit A guardian/child's benefit is payable only if there is no eligible surviving spouse receiving survivor's benefits or the pension of the eligible surviving spouse has been terminated. The applicant for the Guardian/Child’s Benefit must be the legally-appointed guardian or custodian of the deceased member's eligible children. If there is no eligible surviving spouse, the surviving child will be eligible to receive forty percent (40%) of the amount of the deceased member’s average monthly salary that the member was receiving at the time of death. If the deceased member is retired at the time of death, the surviving child will receive eighty percent (80%) of the amount of the retired member’s pension. If there is more than one surviving child who is eligible to receive a pension, the amount of the pension is divided equally among all the surviving children. An eligible child may receive benefits if the following conditions are met:
Guardian/child's benefits shall terminate if an eligible child is legally adopted or when the eligible child becomes 18 years of age unless the child is a full-time student. If the child is a full-time student, the benefits will terminate at age 23. Benefits for a child declared disabled before age 23 will terminate upon the child’s death. Death Benefit If an active or inactive non-retired member of CORP dies without leaving a surviving spouse or eligible surviving children an amount equal to two times the member's accumulated contributions, on account with CORP, is payable to the named beneficiary on record with the Fund Manager. Pensions: Commencement and Duration A Normal Retirement, Accidental Disability or a Total and Permanent Disability pension commences on the first day of the calendar month following the member's date of retirement. The first benefit payment will be issued on the last working day of the month. (Example: A member who retires July 1, 2004 will have a retirement date effective August 1, 2004. Also, a member who retires July 31, 2004 will have a retirement date effective August 1, 2004.) A Survivor Retirement pension begins on the first day of the calendar month following the month of the member's death. If, for any reason, the survivor’s pension is terminated, the payment of benefits ceases at the end of the calendar month in which the event causing the termination occurred. The survivor receives full payment for the month of termination. Any change which may affect a change in the amount of a member's benefit, such as a cost of living increase, will become effective on the first day of the calendar month following the date of the event causing the change. A member's pension or a refund of accumulated member contributions is not subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency law or other process of law except a qualified domestic relations order, and is unassignable except as may be otherwise specifically provided. However, this does not exempt an employee's benefits from a writ of attachment, a writ of execution, a writ of garnishment, and orders of assignment issued by a court of record as the result of a judgment for payment of child support or for child support debt. A retired ADC employee, who is re-employed by ADC in a CORP-designated position, shall have his pension suspended until the retired member again ceases employment with ADC. While employed, the retired member does not contribute to the fund and receives no credited service. When employment with ADC ceases, the retired member may again receive a pension at the same rate as before becoming re-employed. Guaranteed Minimum Aggregate Payout If a member's pension is permanently terminated before the total benefits paid equals the retired/deceased member's accumulated member contributions, the difference shall be paid to the beneficiary named by the member. If no such beneficiary survives the member, the difference is then paid to the legal representative of the last surviving individual who was being paid a pension as the result of a member's death, or the last surviving named beneficiary. State Taxation of CORP Benefits Effective January 1, 1989, all CORP retirement benefits in excess of $2,500 annually will be subject to Arizona State tax. [Example: If a member's pension amount is $20,000 per year, State taxes on $17,500 ($20,000 - $2,500 = $17,500) will be due.] COLA Benefit Increases Effective July 1 of each year, each CORP retiree or survivors may be entitled to a permanent benefit increase. The maximum amount of the increase will be (4%) of the average normal benefit a member received on June 30th of the preceding year, and is contingent upon sufficient excess investment earnings of the Fund Manager. Retirees or survivors who are 55 years of age on July 1 of the current year and were receiving benefits on or before July 31st of the previous year are eligible for the COLA increase. Retirees or survivors who were receiving benefits on or before July 31st of the two previous years are eligible for the COLA increase regardless of age. Retiring CORP members and their eligible dependents are entitled to enroll in one of two State of Arizona Retiree Group Health Insurance Programs. These programs are the State Agencies Universities Active & Retiree Benefits Options (SAGUARO) program administered by the Arizona Department of Administration (ADOA) and the ASRS Group Insurance Health Program. The ASRS Group Insurance Health Program is administered by the Public Safety Personnel Retirement System. The retiring member or surviving spouse may enroll for medical coverage, dental coverage, or both, under either of these programs. Information packets regarding available insurance coverage under these plans can be obtained by contacting the appropriate plan administrators shown below:
Health Insurance Premium Subsidy For ADC employees retiring under CORP or survivors who elect coverage under one of the above Group Health and Accident Insurance Plans are eligible to have CORP pay part of the premium required each month in the amounts indicated below:
Until June 30, 2005, a retiree or survivor who reside in a non-service area is entitled to receive up to the following amounts in addition to the subsidy listed above. This subsidy will require a monthly out of pocket payment by the member. A non-service area is defined as an area within Arizona where the state retiree group insurance program or employer’s retiree health insurance program does not provide or administer a health maintenance organization (HMO) for which the retiree or survivor is eligible. The subsidy consists of up to the following amounts: MEMBERS DEPENDENTS
* NOTE: Monthly out-of-pocket amount must be paid before temporary subsidy is awarded. 1986 CORP is established by the Legislature effective July 1, 1986. At that time, the following positions were designated as CORP job classifications: (a) Food Service (b) Nursing Personnel (c) Corrections Physician's Assistant (d) Therapist (e) Corrections Dental Assistant (f) Hygienist (g) Corrections Medical Assistant (h) Correctional Service Officer, including Assistant Deputy Warden, Deputy Warden, Warden and Superintendent (I) Correctional Program Officer, excluding those serving as Parole Officers (j) Intelligence (k) Criminal Investigation (l) Institutional Maintenance Workers 1990 A five-member Local Board is established by the Legislature to determine membership eligibility, service credits, benefits eligibility, timing of benefit payments and the benefit amounts for its eligible group of employees. A health insurance subsidy for retirees and additional death benefits were added to the program. Additionally, legislation was enacted to add the following CORP job classifications. (m) Parole Officers (n) Investigators (o) Teachers
1992 Legislation was enacted that provided for another CORP job-related disability (Accidental Disability) in addition to the existing "Total and Permanent" job-related disability. 1994 The Legislature increased the accrual rate in determining a CORP member's monthly pension from 2.0% to 2.2% and provided for members to receive years of service credit for military service during the time of a presidential call-up. 1995 Legislation was enacted allowing a CORP member to receive a normal retirement pension when the sum of the member's age and years of credited service equals 80. 1996 H.B. 2075 was adopted into law effective retroactively to January 1, 1995. This legislation granted authority to the Local Board to allow employees with five or more years of credited service in CORP to remain in CORP while temporarily filling a non CORP-designated position in ADC. Additionally, the Local Board was also granted the authority to allow an employee with five or more year of credited service with the Arizona State Retirement System (ASRS) to remain in ASRS if the employee fills a position with ADC that is a CORP-designated position. 1997 Effective July 21, 1997, legislation was enacted which increased the accrual rate, for purposes of retirement, from 2.2% to 2.5%. In addition, the member contribution rate was increased from the current 6.65% of gross salary to 8.5%. Passage of this legislation also allows the ADC director, deputy directors, and assistant directors hired after July 1, 1998, to participate in CORP. 1999 Effective August 6, 1999, H.B. 2086 was adopted into law. This bill allows members to redeem forfeited years of service which were previously refunded from CORP. The cost to purchase this forfeited time would be the increase in actuarial present value (APV) of projected benefits. S.B. 1051 was enacted, which increases an eligible spouse’s pension benefits from the existing 2/3% to 3/4%. This bill also increased the age requirement of an eligible child’s pension from the current age of 22 to 23 if the child is a full-time student. Effective August 6, 1999, S.B. 1083 was passed into law. This bill allows a member of CORP, who terminates employment after 5 or more years of credited service to receive monies in addition to the member’s contributions to the Plan in amounts ranging from 25% to 100% of the member contribution. 2001 S.B. 1129 was enacted, which provides for a normal retirement at twenty-years (20) of service with a maximum of 32 years. The pension at 20 years of service would be 50% of a three year average salary with 2% increments for every year over 20 up to 25 years. Effective retroactively to July 1, 2001, S.B. 1107 was passed into law. This bill provides for a permanent increase in the maximum monthly health insurance premium subsidy to each eligible retiree and survivor. S.B. 1107 was enacted. This bill temporarily increases the maximum monthly health insurance premium subsidy to each eligible retiree and survivor who live in a non-service area. This temporary increase will last through June 30, 2003. 2001 Effective August 9, 2001, S.B. 1045 was enacted. This bill provides a cap of 4% of the annual cost of living increase (COLA). This cap is at the equivalent of 4% of the average normal monthly benefit received by all retirees. H.B. 2111 was enacted into law, effective August 9, 2001. This bill provides, individuals who have left their retirement contributions on account with any of the State retirement systems or plans and has terminated employment, the option to transfer service credits from another Arizona State retirement system or plan back to the Arizona system or plan of their choice. 2002 H.B. 2118 was enacted into law, effective August 22, 2002. This bill (1) increases the pension for a surviving spouse of a retired member from 75 percent to 80 percent of the member’s monthly pension, (2) increases survivors pensions from 37 and ½ percent to 40 percent of the member’s monthly salary (3) gives the surviving spouse of a member killed in the line of duty a monthly pension benefit equal to the member’s average monthly benefit compensation, (4) clarifies that a "member" in CORP customarily work at least forty hours in a normal week. 2003 H.B. 2349 was enacted into law, effective September 18, 2003. Public Retiree Health Insurance supplemental medical insurance premium subsidies for certain retirees are extended through June 30, 2005, with the following provision: After June 30, 2003, to qualify for the supplemental benefit, retired members are required to pay minimum monthly out-of-pocket expenses which depends upon Medicare eligibility and family coverage.
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