ARIZONA HOUSE OF REPRESENTATIVES Fifty-fourth Legislature Second Regular Session
	Senate: FIN DPA 9-0-0-1 | 3^rd Read 30-0-0-0 House: GOV DP 9-0-0-2

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SB 1034: ASRS; required distributions; nonparticipatory employers

Sponsor:  Senator Livingston, LD 22

Caucus & COW

Overview

Prescribes determinations for retirement benefits of certain members of the Arizona State Retirement System (ASRS).

History

Current statute requires ASRS to establish a separate fund for an employer other than a charter school who employs at least 50 employees as of one year before the employer's nonparticipation date and who is no longer participating in ASRS (A.R.S. § 38-751).

Any member of ASRS who is eligible for normal retirement benefits on their normal retirement date may choose to defer receiving benefits.  The payment of their deferred benefits cannot begin later than the member's required beginning date that is the April 1st following the calendar year that the member reaches 70 ½ years of age or the calendar year that the member terminates employment, whichever is later (A.R.S. § 38-759).

Provisions

1. Repeals statute that requires ASRS to establish a separate fund for an employer that is based on the number of contributing employees if certain conditions apply. (Sec. 1)

2. Removes statute that stipulates that an employer no longer participating is not eligible to participate in ASRS after the employer's nonparticipation date. (Sec. 1)

3. Specifies that the payment of a member's deferred benefits must not begin later than the member's required beginning date. (Sec. 2)

4. Requires ASRS to treat the member as having commenced distribution of retirement benefits on the member's required beginning date if a member dies after their required beginning date and had not commenced distribution of benefits. (Sec. 3)

5. Stipulates that ASRS must determine the retirement benefit of the member as a straight annuity as of the date of their required beginning date. (Sec. 3)

6. States that the estate of the member is entitled to their benefit payments and that any remaining member contributions on account must be disbursed pursuant to statute. (Sec. 3)

7. Modifies the definition of required beginning date to conform with the Internal Revenue Code. (Sec. 3)

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

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12.                   SB 1034

13. Initials SJ  Page 0 Caucus & COW

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