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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
ASRS; long-term disability program
Purpose
Expands consideration of members of the Arizona State Retirement System (member) with disabilities to include members unable to perform one or more duties of the occupation. Authorizes the Arizona State Retirement System (ASRS) to investigate falsified information or records related to Long-term Disability Program (LTD) eligibility or benefits.
Background
Current statute considers a member to have a disability if during the first 30 months of a period of disability, based on objective medical evidence, the member is unable to perform all duties of the position held. In addition, the minimum benefit for a member who is entitled to receive monthly LTD benefits is $50 per month (A.R.S. § 38-797.07).
Conflicting legislation amending A.R.S. § 38-797 was passed in 2014, resulting in two nearly-duplicate versions of the section, with differing definitions of monthly compensation (A.R.S. §§ 38-797 and 38-797; Version 2). One version of the statute proscribes a new formula determining the member's monthly compensation (A.R.S. § 38-797); the other version contains a technical correction to the language of the formula (A.R.S. § 38-797; Version 2).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Considers a member to have a disability if during the first 30 months of a period of disability, based on objective medical evidence, the member is unable to perform one or more duties of the member's occupation, rather than being unable to perform all duties of the member's position.
2. Allows the ASRS or its contracted administrator to investigate information that indicates falsification related to LTD eligibility or benefits.
3. Allows ASRS, its contracted administrator or an authorized third party to collect and examine any statement or evidence related to falsification.
4. Excludes, from the requirement of a minimum $50 monthly LTD benefit, members who receive 100 percent of their pre-disability monthly compensation.
5. Repeals duplicate statute affecting the definition of monthly compensation.
6. Makes technical changes.
7. Becomes effective on the general effective date.
Prepared by Senate Research
January 18, 2019
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