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RETIREMENT
The following information is provided to assist you in making decisions regarding retirement. However, each member's situation is different. For more specific information regarding your individual retirement, you may contact the CORP Local Board Office. Normal Retirement CORP members who wish to retire should complete an application for normal retirement at their local institution's personnel office at least 45 days prior to the anticipated date of retirement. Employees working at Central Office may contact the CORP Local Board Office. Applications may also be mailed to the CORP Local Board Office, 1831 West Jefferson, MC 560, Phoenix, Arizona 85007. Upon satisfying any one of the following requirements, a member is eligible to receive a normal retirement pension (without a penalty) under CORP: The member completes 20 years or more of service. The member is age 62 with ten or more years of service. The member’s age plus years of credited service equals 80. [Example: If a member has 19 years of credited service and is 61 years of age, he will be eligible for a normal retirement benefit because he has 80 points (19 + 61 = 80).] Benefits Calculation Formula A member's retirement benefit is calculated using the member's age, average monthly salary, and the number of years and months for which he receives credited service. Any lump sum payments on termination of employment for accumulated vacation or annual leave, sick leave, compensatory time or any other form of termination pay will be excluded when calculating the average monthly salary. The amount of the monthly normal pension is based on a member’s credited service and average monthly salary as follows: For retirement with twenty (20) years of credited service but less than twenty-five (25) years of credited service , the normal monthly pension is determined by multiplying 50% of the average monthly salary for the first 20 years of credited service, plus 2% of the average monthly salary for each year of credited service between 20 and 25 years. For retirement with less than twenty (20) years of credited service, the normal monthly pension is determined by multiplying 2.5% of the average monthly salary times the member’s years of credited service. (This calculation would be used for members who are 62 years of age and have at least 10 years of credited service or a member who’s age and credited service equals 80). For retirement with twenty-five (25) or more years of credited service, the normal monthly pension amount is determined by taking a member's total amount of credited service times the service factor (2.5%) times the member's average monthly salary. The average monthly salary is calculated by using: The highest average monthly salary earned during a period of three consecutive years of service within the last 10 years. (The average monthly salary is derived by adding three consecutive years and dividing the total by 36). To estimate the amount of the monthly benefit for a normal retirement for 20 to 24 years of service, the member must:
To estimate the amount of the monthly retirement benefit for a retirement with 25 or more years of service, for 62 years with 10 or more years and for age plus years equals 80, you must: Optional Retirement Applies only to CORP members who meet the following criteria: Individuals who meet this criteria may retire without meeting the retirement standards for a normal retirement under CORP. (However, if a member chooses this retirement option, a reduction is applied to the member's benefit depending upon his age and whether he chooses a survivor option.) Optional Retirement Benefit Calculation Formula
The figures in the following chart, provided by the Arizona State Retirement System, reflect the percentage of "normal retirement" benefits a member receives if he chooses to retire under the Optional Retirement clause.
Retirement Annuity Options Optional retirement benefits are payable to a member for life. However, the member has the option of choosing how he wants his benefits paid by selecting the retirement annuity option that best suits him and his beneficiary. There are two categories of options from which a member may choose: (1) the Life Annuity with a Period Certain and (2) the Joint and Survivor Annuity. Option # 1 - Will pay the member a monthly benefit for life. There will be no further payments after death. Option # 2 - Will pay the member a reduced monthly benefit for life. If the member dies before receiving a total of 60 monthly payments (five years), the member’s designated beneficiary will receive the remaining payments until all 60 payments have been made. If the member dies after receiving 60 monthly payments, payment of benefits will cease on the last day of the month of death.Option # 3 - Will pay the member a reduced monthly benefit for life. If the member dies before receiving a total of 120 monthly payments (10 years), the member’s designated beneficiary will receive the remaining payments until all 120 payments have been made. If the member dies after receiving 120 monthly payments, payment of benefits will cease on the last day of the month of death. Option #4 - Will pay the member a reduced monthly benefit for life. If the member dies before receiving a total of 180 monthly payments (fifteen years), the member’s designated beneficiary will receive the same monthly payments for the remainder of the 180 months. If the member dies after receiving 180 monthly payments, payment of benefits will cease on the last day of the month of death. The following Joint and Survivor Annuity options will provide both you (the member) and your beneficiary with lifetime benefits. Option # 5 - Will pay the member a reduced monthly benefit for life. At the time of the member’s death, the spouse, if living, will receive a lifetime benefit equal to 66-2/3% of the member’s monthly benefit. (If your beneficiary is not your spouse, you may choose this option only if you are NOT more than 24 years older than your beneficiary). Option # 6 - Will pay the member a benefit each month for life. At the time of the member’s death, the beneficiary, will receive a lifetime benefit equal to 50% of the member’s monthly benefit. Option # 7 - Will pay the member a reduced monthly benefit for life. At the time of the member’s death, the beneficiary, will receive a lifetime benefit equal to 100% of the member’s monthly benefit. (If your beneficiary is not your spouse, you may choose this option only if you are NOT more than 10 years older than your beneficiary). An ADC employee, working in a CORP-designated position, who becomes incapacitated as the direct and proximate result of performance of duty, may be retired on a disability retirement at a pension of 50% of his average monthly salary. There are no service credit requirements for a disability retirement. CORP has two types of disability retirements, (1) Accidental and (2) Total and Permanent. An employee may receive an Accidental or a Total and Permanent disability pension if:
Accidental Disability "Accidental Disability" is defined as a physical or mental condition that the Local Board finds prevents an employee from totally and permanently performing a reasonable range of duties within the employee's department, was incurred in the performance of the employee's duties and was the result of either physical contact with inmates, responding to a confrontational situation with inmates or a job-related motor vehicle accident. A member is NOT eligible for an Accidental Disability retirement if:
Total and Permanent Disability "Total and Permanent Disability" is defined as a physical or mental condition which the Local Board finds totally and permanently prevents a member from engaging in any gainful employment and which is the direct and proximate result of the member's performance of his duty as an employee of the Department of Corrections. (Not an "Accidental Disability"). Total and Permanent Disability (Continued) "Gainful employment" means the capability of performing at least four hours of work, at least four days a week, for which the member would have earned at least $300 monthly and /or the minimum hourly wage. It is not restricted to the type of work performed before impairment, nor is it limited to job opportunities actually available and/or located near the member's home. A member does not qualify for Total and Permanent Disability retirement benefits under CORP if the Local Board determines that his disability results from any of the following conditions:
The Local Board determines if a member meets the criteria for a disability retirement based on medical evidence obtained by a medical doctor or clinic selected by the Local Board. A disability retirement becomes effective the date a member ceases to be an employee. The Local Board may require that a member, receiving a disability pension, undergo periodic medical or psychological reevaluations until the member reaches age 62. Payment of benefits for a disability shall be terminated if the Local Board finds the retired member no longer meets the requirements for the disability pension. The Local Board may also suspend payment of benefits if the retired member refuses to submit to a reevaluation of his condition. If the refusal continues for one year, the Board may revoke the disabled retired member's rights to benefits entirely. Disability Rehearing A member who receives a notification of denial of his application for an Accidental or a Total and Permanent disability retirement may be entitled to a rehearing. A written request for a rehearing must be submitted to the Local Board or its secretary within 60 days after the member receives a notification of denial. The Fund Manager may apply for a rehearing on a specific application after receiving notification of the Local Board’s original action of denial of a claimant’s application for an Accidental or Total and Permanent disability retirement. The Fund Manager must submit a written request for rehearing to the Local Board or its secretary within 60 days after receiving notification of the Local Board’s original action of denial. (A.R.S. Section 38-893) Long Term Disability (LTD) The Long Term Disability (LTD) Program provides employees of the State of Arizona with a monthly benefit designed to partially replace income lost during periods of total disability resulting from a covered injury, sickness or pregnancy. It is administered by the Arizona Department of Administration. Employees of the State of Arizona who are CORP members are eligible for benefits under this program. However, members of CORP are ineligible for the health insurance subsidy. LTD Benefits are provided for State of Arizona employees who are totally disabled for more than six months. This benefit is equal to 66-2/3% of an employee's basic monthly salary. A CORP member who qualifies for LTD and meets the criteria for a CORP disability retirement may receive both CORP and LTD benefits at the same time. However, the amount of the monthly LTD benefit will be reduced. The amount of the monthly CORP disability benefit is subtracted from the basic monthly LTD benefit to determine the actual amount paid by LTD. The member will not receive more than 66 2/3% of his salary. For a more detailed explanation of Long Term Disability Benefits you may contact the Arizona Department of Corrections, Personnel Services Bureau, Benefits Office, 1831 West Jefferson, Phoenix, Arizona 85007.
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