ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	Senate: FIN DP 9-0-1-0 | 3^rd Read 30-0-0-0

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SB 1348: ASRS; supplemental employee deferral plans

Sponsor:  Senator Livingston, LD 22

Committee on Government & Elections

Overview

Allows an employee to elect to participate in a supplemental employee deferral plan if the person meets the eligibility requirements prescribed by the Arizona State Retirement System (ASRS).

History

The director of ASRS, under supervision of the governing committee for deferred compensation plans, is authorized to hire and supervise employees and obtain services that are deemed necessary to administer the deferred compensation plans outlined in statute.  These plans are required to bear the costs for these employees and services (A.R.S. § 38-715).

Current statute establishes a supplemental employee deferral plan to provide public employees, other than state employees, an opportunity to save additional tax-deferred monies for retirement.  If an employer, that is not this state, elects to participate in the supplemental employee deferral plan, any employee who meets the ASRS eligibility requirements may participate.  Employee contributions and earnings on employee contributions are immediately vested.  Any employer contributions and the earnings on those contributions must vest according to the schedule established in the plan (A.R.S. § 38-781).

Provisions

1. Authorizes one or more supplemental employee deferral plans to be established pursuant to statute to provide public employees an opportunity to save additional tax-deferred monies for retirement. (Sec. 2)

2. Includes the state as an employer that may participate in a supplemental employee deferral plan. (Sec. 2)

3. Permits an employee of an employer, on or after July 1, 2022, to elect to participate in a supplemental employee deferral plan if the employee meets the ASRS prescribed eligibility requirements. (Sec. 2)

4. Requires a supplemental employee deferral plan participant's employer to make salary reductions from the participant's compensation at no cost to the employee, ASRS or any vendor retained by ASRS. (Sec. 2)

5. Stipulates that employer contributions must vest according to the schedule established by the employer, if the employer completes and submits a schedule to ASRS. (Sec. 2)

6. Specifies that if an employer does not submit a schedule to ASRS, employer contributions and the earnings on employer contributions will vest according to the default schedule established by ASRS. (Sec. 2)

7. Repeals statute relating to deferred compensation plans. (Sec. 3)

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

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12.                   SB 1348

13. Initials SJ  Page 0 Government & Elections

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