ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	Senate: FIN DP 9-0-1-0 | 3^rd Read 29-0-1-0

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SB 1052: ASRS; required beginning date; distributions

Sponsor:  Senator Livingston, LD 22

Committee on Government & Elections

Overview

Stipulates that the deferred benefits of a member of the Arizona State Retirement System (ASRS) must not commence later than their required beginning date.

History

Current statute specifies that the payment of an ASRS member's deferred benefits must commence no later than the April 1 following the calendar year that the member attains 71 ½ years of age or the calendar year in which the member terminates employment, whichever occurs later (A.R.S. § 38-759).

If an ASRS member dies before distributions begin, the member's entire interest must be distributed, or begin to be distributed no later than the timelines outlined in statute (A.R.S. § 38-775).

Provisions

1. Specifies that the payment of a member's deferred benefits must not commence later than the member's required beginning date. (Sec. 1)

2. Maintains that the requirements for distributions take precedence over any inconsistent provisions of statute relating to distributions and the long-term disability program. (Sec. 2)

3. Requires distributions made to the surviving spouse to be made by December 31 of the calendar year in which the member would have attained 72 years of age, rather than 71 ½, if later than the member's death. (Sec. 2)

4. States that ASRS must 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 the member had not commenced distribution of benefits. (Sec. 2)

5. Requires ASRS to determine the member's retirement benefit as a straight annuity as of the date of the member's required beginning date. (Sec. 2)

6. Entitles the member's estate to the member's benefit payments and any remaining member contributions on account must be disbursed according to current statute. (Sec. 2)

7. Clarifies that monthly long-term disability program benefits are not payable to a member receiving retirement benefits from ASRS unless the retirement benefits are required pursuant to current statute. (Sec. 3)

8. Modifies the definition of required beginning date. (Sec. 1, 2)

9. Makes technical and conforming changes. (Sec. 2)

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13.                   SB 1052

14. Initials SJ  Page 0 Government & Elections

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