ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

 

HB 2138: ABOR; optional retirement programs

Sponsor:  Representative Kavanagh, LD 23

Committee on Government & Elections

Overview

Allows the Arizona Board of Regents (ABOR) to establish optional retirement programs for employees of the institutions under its jurisdiction.

History

Current statute provides the ability for ABOR to establish optional retirement programs for members of the faculty and administrative officers of institutions under its jurisdiction.  These retirement programs must provide retirement and death benefits and may be purchased for the aforementioned people.  The benefits that are provided in the optional retirement program must be provided through annuity contracts, fixed or variable in nature, or a combination of the two, or other retirement plans that have been approved by ABOR.

For an electing employee, retirement contributions may not be made by ABOR until the employee completes five years of service.  Employee contributions during the initial five-year period and during the employee's continued service to an institution must be promptly remitted to the optional retirement programs approved by ABOR.  If an employee does not continue in service for at least five years, the amount of employer contributions, with interest, must be refunded to the state (A.R.S. § 15-1628).

Provisions

1.    Authorizes ABOR to establish optional retirement programs for employees, rather than administrative officers, of the institutions under its jurisdiction. (Sec. 1)

2.    Specifies that if an electing employee does not continue in service with an ABOR institution for at least five years, the amount of employer contributions must be forfeited to the institution and used to make future employer contributions, rather than being refunded to the state. (Sec. 1)

3.    Makes technical and conforming changes. (Sec. 1)☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

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7.                      HB 2138

8.    Initials SJ  Page 0 Government & Elections

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