ARIZONA
HOUSE OF REPRESENTATIVES
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SB 1016: ASRS; ineligible contributions; unfunded liability |
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PRIME SPONSOR: Senator Livingston, LD 22 BILL STATUS: Government |
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Mandates an employer who participates in
the Arizona State Retirement System (ASRS) to pay the unfunded liability for contributions
on compensation that are ineligible by statute or rule.
History
Current statute requires an employer to pay ASRS any unfunded liability resulting from the provision of benefits or credit to the person if an employer pays contributions on behalf of any person who is ineligible by statute for ASRS membership.
Unfunded liability is defined as the amount, if any, that the present value of the person's benefit or credit, using the actuarial assumptions approved by ASRS, exceeds the amount in the person's ASRS account calculated as of the date that ASRS or a court first determines that ASRS is legally obligated to provide any credit or benefit to the person (A.R.S. §38-748).
Provisions
1. Requires an employer that participates in ASRS to pay the unfunded liability for contributions on compensation that are not eligible by statute or rule. (Sec. 1)
2. Modifies the definition of unfunded liability to state that for contributions on compensation that is ineligible by statute or rule for ASRS contributions, the difference, if any, of the amount that the present value of a person's benefit or credit, using the actuarial assumptions approved by ASRS, exceeds the amount of the present value of the benefit or credit the person would receive if the ineligible contributions, and the compensation and credit associated with those ineligible contributions, had not been reported to ASRS and the amount in the person's ASRS account that is associated with the ineligible contributions on compensation. (Sec. 1)
3. Makes technical and conforming changes. (Sec. 1)
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7. Fifty-fourth Legislature SB 1016
8. First Regular Session Version 1: Government
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