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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
ASRS; contingent annuitants
Purpose
Specifies that an Arizona State Retirement System (ASRS) member who chooses an optional premium benefit (OPB) may name one contingent annuitant to receive the OPB.
Background
ASRS offers optional forms of retirement benefits that continue to provide benefits beyond the member's lifetime. If one of these options is elected, the member designates a beneficiary, or contingent annuitant, who is entitled to receive the benefits following the member's death. A contingent annuitant is the person named by a member to receive retirement income payable following a member's death after retirement (A.R.S. §§ 38-711 and 38-760; ASRS).
An ASRS member
who elects to receive a period certain and life annuity may also elect, at the
time of retirement, an optional form of health insurance premium benefit to
supplement the cost of retiree health insurance. The OPB is designed for
members who have a spouse or dependent who will want to continue to receive the
health benefit following the member's death (A.R.S.
§ 38-783; ASRS).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Specifies that a member who chooses an OPB may only name one contingent annuitant to receive the OPB after the member's death.
2. Replaces the term beneficiary with the term contingent annuitant for the purposes of the period certain and life annuity.
3. Makes technical changes.
4. Becomes effective on the general effective date.
House Action
WM 1/17/24 DP 10-0-0-0
3rd Read 1/25/24 55-0-4-0-1
Prepared by Senate Research
February 22, 2024
MG/JC/cs