State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1213: ASRS; return to work

PRIME SPONSOR: Senator Livingston, LD 22

BILL STATUS: Government

                               

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteSpecifies that an employer participating in the Arizona State Retirement System (ASRS) is not required to pay contributions at an alternate contribution rate on behalf of a retired member if they return to work in a position that is currently filled by an active member of ASRS that the employer is already paying contributions on.

History

Current statute requires an employer to pay contributions at an alternate contribution rate on behalf of a retired member who returns to work with an employer participating in ASRS in any capacity in a position normally filled by an employee of the employer or in a position that is similar in responsibilities and duties.  This statute applies to a member who has reached normal retirement age or a member who has retired if the member's retirement benefit has not been suspended (A.R.S. §38-766.02).

Provisions

1.       Specifies that an employer is not required to pay contributions at an alternative contribution rate on behalf of a retired member if this member returns to work with the employer in a position that is currently filled by an active member of ASRS that the employer is currently required to pay and is paying contributions on behalf of the active member. (Sec. 1)

2.       Allows an employer to pay contributions at an alternate contribution rate for a retired member who meets the requirements for an exemption pursuant to statute. (Sec. 1)

3.       States that for contributions made pursuant to this Act beginning July 1, 2019, if ASRS and the employer determine that the alternate contribution rate does not apply to a retired member who returns to work for whom the employer has paid an alternate contribution rate, the employer is permitted to request an employer credit, not including interest, for those contributions within 90 days after the end of the fiscal year when the contributions were paid. (Sec. 1)

4.       Stipulates that ASRS must issue a refund to an employer in a form determined by ASRS if the determination is made that an employer credit is not feasible. (Sec. 1)

5.       Makes a conforming change. (Sec. 1)

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9.       Fifty-fourth Legislature                       SB 1213

10.   First Regular Session                            Version 1: Government

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