Assigned to FIN                                                                                                                              AS ENACTED

ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

ENACTED

FACT SHEET FOR H.B. 2008/S.B. 1352

ASRS; employer; member; contribution.

Purpose

Modifies requirements for the Arizona State Retirement System (ASRS), ASRS participating employers and ASRS members in circumstances resulting from an employer paying the incorrect amount of employer or member contributions into ASRS.

Background

If an employer pays more than the correct amount of employer or member contributions into ASRS through a mistake of fact, ASRS must return the contributions through an employer credit, if requested by the employer. If the request is made within one year after the date of overpayment, the overpayment must be returned by check on request of the employer. If an employer overpayment occurs through a mistake of law, ASRS must return the contributions through an employer credit, if requested by the employer (A.R.S. § 38-738).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Specifies that an employer credit that ASRS provides to an employer for excess contributions paid into ASRS through a mistake of fact or of law is against future contributions.

2. Requires ASRS to return excess contributions to an employer if the employer requests an employer credit within one year after the date of overpayment.

3. Requires an employer to return any member portion of returned contributions to the member on receipt of an employer credit or a return of contributions.

4. Prohibits ASRS from paying an employer earnings attributable to excess contributions and requires ASRS to reduce the amount returned to an employer by the amount of attributable losses.

5. Prohibits the correct amount of member contributions from being paid to ASRS after the death of a member, if an employer paid less than the correct amount of employer or member contributions into ASRS.

6. Makes a technical change.

7. Becomes effective on the general effective date.

House Action Senate Action

GE                 1/13/21      DP     13-0-0-0                FIN                2/10/21      DP       9-0-1

3^rd Read         1/28/21                 58-0-2                    3^rd Read         2/18/21                  30-0-0

                                                                                 (H.B. 2008 was substituted for S.B. 1352 on 3^rd                                                                                  Read)

Signed by the Governor 2/26/21

Chapter 36

Prepared by Senate Research

March 3, 2021

MG/gs