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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
tax credits; affordable housing.
(NOW: ASRS; return to work)
Purpose
Specifies additional return to work and alternate contribution rate requirements for state retirement plans.
Background
Current statute requires an employer to pay contributions at an alternate contribution rate (ACR) on behalf of a retired member who returns to work with an employer in any capacity in a position ordinarily filled by an employee or in a position that is similar in duties and responsibilities to that of a position ordinarily filled by an employee (A.R.S. § 38-766.02). This applies to a retired member who has reached a normal retirement age or a retired member who retired if that retired member's retirement benefit has not been suspended during that employee's return to work status.
The ACR formula is statutorily defined and instituted on July 1, 2012, at a rate of 8.64 percent. The current ACR for FY 2019 is 10.53 percent.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
ASRS
2. Allows an employer to pay the ACR for a retired ASRS member who meets the requirements for an exemption.
3. Allows an employer to request an employer credit for those contributions, not including interest, within 90 days after the end of the fiscal year in which the contributions were paid, if ASRS and the employer determine that the ACR does not apply, beginning July 1, 2019.
4. Requires ASRS to issue a refund to an employer in a form determined by ASRS, if it determines that an employer credit is not feasible.
Elected Officials' Retirement Plan (EORP)
5. Considers as overpayments any pension payments received by an EORP member, who retired on or after July 1, 2009, while holding the same office from which the member retired within one full term after the date of retirement.
6. Limits repayment up to only the amount received during that term.
Public Safety Personnel Retirement System (PSPRS)
7. Considers as overpayments any pension payments received by the retired PSPRS member, who retired on or after July 1, 2009, during a period of reemployment, if a retired member becomes reemployed in any capacity by the employer from which the member retired before 12 months after the date of retirement.
8. Limits repayment up to only the amount received between the date of the member's reemployment and the expiration of the 12-month period, if the PSPRS Board determines, for a member who retired on or after July 1, 2009, that the retired member's reemployment during the 12-month period and the failure of the employer to suspend the member's pension were not intended to circumvent return to work requirements.
9. Allows the retired member who retired on or after July 1, 2009, if that member terminates employment, to be subsequently reemployed with the employer from which the member retired and resume receiving pension payments after a period of 12 months, less the period of time that member was not reemployed with the employer from which the member retired after retirement, if at least 60 days of the 12 months are consecutive.
Corrections Officer Retirement Plan (CORP)
10. Considers as overpayments any pension payments received by a retired CORP member, who retired on or after July 1, 2009, during a period of reemployment if the employment occurs less than 12 months after retirement.
11. Limits repayment up to only the amount received between the date of the member's reemployment and the expiration of the 12-month period, if the PSPRS Board determines that the retired member's reemployment during the 12-month period and the failure of the employer to suspend the member's pension were not intended to circumvent return to work requirements.
12. Allows the retired member who retired on or after July 1, 2009, if that member terminates employment, to be subsequently reemployed with the same employer in a designated position and resume receiving pension payments after a period of 12 months, less the period of time that member was not reemployed in a designated position with the employer from which the member retired after retirement, if at least 60 days of the 12 months are consecutive.
Miscellaneous
13. Makes technical changes.
14. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Adopted the strike-everything amendment.
2. Makes technical clarifications.
Amendments Adopted by the House of Representatives
· Added all provisions pertaining to PSPRS, EORP and CORP.
Senate Action House Action
FIN 2/20/19 DPA/SE 10-0-0 GOV 3/21/19 DPA 8-0-0-3
APPROP 2/20/19 W/D 3rd Read 5/27/19 58-1-1
3rd Read 3/6/19 30-0-0
Prepared by Senate Research
May 27, 2019
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