ARIZONA HOUSE OF REPRESENTATIVES

HB 2429: appropriations; EORP contributions; counties

PRIME SPONSOR: Representative Thorpe, LD 6

BILL STATUS: House Engrossed

Overview

Appropriates $3,000,000 from the General Fund (GF) to the Arizona Department of Administration (ADOA) for distribution to certain counties each fiscal year (FY) from FY2020 through FY2043.

History

The Elected Official's Retirement Plan (EORP) fund is used exclusively for payment of benefits to retired members or their beneficiaries as provided in statute and for the payment of the administration, operation and investment expenses of the plan. In no case is any portion of the fund reverted or otherwise paid to an employer (A.R.S. § 38-802).

For FY2014 through FY2043, $5,000,000 is appropriated in each FY from the GF to the EORP fund to supplement the normal cost plus the amount to amortize the unfunded accrued liability pursuant to statute. The monies appropriated to this fund are prohibited from being used to pay for an increase in benefits that are otherwise payable to members (A.R.S. § 38-810).

Provisions

1. Appropriates $3,000,000 from the GF in FY2020 through FY2043 each fiscal year to ADOA to distribute to counties to supplement the normal cost plus an amount to amortize the unfunded accrued liability pursuant to statute. (Sec. 1)

2. Requires ADOA to equally allocate the appropriation among all counties with a population of less than 350,000 people. (Sec. 1)

3. Stipulates that the counties are only to use these monies for required employer contributions to the elected officials' retirement plan. (Sec. 1)

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7. Fifty-fourth Legislature                       HB 2429

8. First Regular Session                            Version 4: House Engrossed

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