 |
ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
ASRS; paying interest; authorization
Purpose
Prohibits the Arizona State Retirement System (ASRS) from paying interest on any amount to a member, an alternate payee or an employer, unless specifically authorized by retirement statutes.
Background
Interest means the assumed actuarial investment earnings rate approved by the ASRS Board (Board) (A.R.S. § 38-711).
A member who leaves employment before July 1, 2011, other than by retirement or death, may elect to receive a return of the contributions as follows:
1) if the member has less than five years of credited service, the member shall receive all of the member's contributions;
2) if a member has five or more years of credited service, the member shall receive the member's contributions and an amount equal to a percentage of the employer contributions paid on behalf of the member, as follows:
a) 5.0 to 5.9 years of credited service, 25 percent;
b) 6.0 to 6.9 years of credited service, 40 percent;
c) 7.0 to 7.9 years of credited service, 55 percent;
d) 8.0 to 8.9 years of credited service, 70 percent;
e) 9.0 to 9.9 years of credited service, 85 percent; or
f) 10.0 or more years of credited service, 100 percent; and
3) interest on the returned contributions as determined by the Board.
A member whose membership commenced on or after July 1, 2011, and who leaves employment other than by retirement or death may elect to receive a return of all of the member's contributions with interest as determined by the Board.
Withdrawal of contributions with interest constitutes a withdrawal from membership in the ASRS and results in a forfeiture of all other benefits under the ASRS (A.R.S. § 38-740).
There is no actuarial fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits the ASRS from paying interest on any ASRS amount or long-term disability amount paid to a member, an alternate payee or an employer, unless specifically authorized by retirement statutes.
2. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Specifies the applicable statute.
Senate Action
FIN 1/23/19 DPA 10-0-0
Prepared by Senate Research
January 24, 2019
CS/kja