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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
technical correction;
double punishment
(NOW: EORP; appropriation; retirement)
Purpose
An emergency measure that allows a member of the Elected Officials' Retirement Plan (EORP) to receive early pension payments for normal retirement if the member meets outlined requirements. Appropriates $60,000,000 from the state General Fund (state GF) in FY 2023 to EORP to pay unfunded liability.
Background
A Tier 1 member of EORP who ceases to hold office is eligible for normal pension if the member: 1) is 65 years old with at least 5 years of credited service; 2) is 62 years old with at least 10 years of credited service; or 3) has 20 or more years of credited service. A Tier 2 member of EORP who ceases to hold office is eligible for normal retirement pension if the member is: 1) 65 years old with at least 5 years of credited service; or 2) 62 years old with at least 10 years of credited service (A.R.S. § 38-805).
S.B. 1002 appropriates $60,000,000 from the state GF in FY 2023 to EORP.
Provisions
1. Allows an in EORP member, notwithstanding any statutory age and service requirements, who gives an irrevocable notice of resignation by July 29, 2022, with a retirement date no later than September 30, 2022, to receive pension payments for normal retirement if the member is:
a) 55 years of age with 10 years of service; or
b) 59.5 years of age with 5 years of service.
a) making contributions to EORP;
b) accruing credited service under EORP while holding office; and
c) participating in the Elected Officials' Defined Contribution Retirement System.
3. Requires the employer of a subsequently elected member to pay contributions at the alternate contribution rate, regardless of when the retired member returns to work.
4. Appropriates $60,000,000 from the state GF in FY 2023 to EORP to pay unfunded liability.
5. Requires the Board of Trustees of the Public Safety Personnel Retirement System to account for the appropriation in the June 30, 2023, actuarial valuation of EORP.
6. Exempts the appropriation from lapsing.
7. Becomes effective on signature of the Governor, if the emergency clause is enacted.
Amendments Adopted by Committee
· Adopted the strike-everything amendment.
Amendments Adopted by the Committee of the Whole
1. Prohibits an EORP subsequently elected member who gives an irrevocable notice of resignation by June 30, 2022, with a retirement date no later than September 30, 2022, notwithstanding statutory requirements for from:
a) making contributions to EORP;
b) accruing credited service under EORP while holding office; and
c) participating in the Elected Officials' Defined Contribution Retirement System.
2. Requires the employer of a subsequently elected member to pay contributions at the alternate contribution rate, regardless of when the retired member returns to work.
3. Makes conforming changes.
Amendments Adopted by the House of Representatives
· Delays, from June 30, 2022, to July 29, 2022, the date by which an EORP member may give an irrevocable notice of resignation in order to receive pension payments for normal retirement if the member meets certain age and service requirements.
Senate Action House Action
APPROP 2/22/22 DPA/SE 9-0-1 GE 3/23/22 DP 9-2-0-2
3RD Read 3/9/22 23-5-2 APPROP 3/28/22 DP 12-1-0-0 3rd Read 6/22/22 42-14-4
Prepared by Senate Research
March 9, 2022
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