ARIZONA HOUSE OF REPRESENTATIVES

SB 1213: ASRS; return to work

PRIME SPONSOR: Senator Livingston, LD 22

BILL STATUS: House Engrossed

Overview

Specifies 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. Specifies that any pension payments received by an Elected Officials Retirement Plan (EORP) member while holding the same office from which they retired within one full term after the date of retirement are considered overpayments. (Sec. 2)

6. Stipulates that the EORP member overpayments are subject to repayment up to the maximum of only the amount received during that term. (Sec. 2)

7. Declares that any pension payments received by a retired member of the Public Safety Personnel Retirement System (PSPRS) or the Corrections Officer Retirement Plan (CORP) during the period of reemployment are considered overpayments. (Sec. 3, 4)

8. Specifies that the PSPRS or CORP retired member would have to repay only up to the amount received between the date of reemployment and the expiration of the twelve-month period, if the determination was made that the failure to suspend the member's pension was not intentional to circumvent the return to work statutes. (Sec. 3, 4)

9. Allows, if a PSPRS or CORP retired member terminates employment, the member to be reemployed with the same employer and resume receiving pension payments after the twelve-month period, less the period of time when they were not reemployed as long as at least 60 days of the twelve-month period are consecutive. (Sec. 3, 4)

10. Specifies overpayments of pensions received from members of the EORP, PSPRS and the CORP applies only to members who retired on or after July 1, 2009. (Sec. 2, 3, 4)

11. Contains a retroactive effective date of from and after June 30, 2009. (Sec. 5)

12. Makes technical and conforming changes. (Sec. 1, 2, 3, 4)

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16. Fifty-fourth Legislature                       SB 1213

17. First Regular Session                            Version 3: House Engrossed

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