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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
ASRS; retirement; legislators; other employment
Purpose
Allows an Arizona State Retirement System (ASRS) member who is a state elected official and who attains a normal retirement date through employment other than as a state elected official to retire at any time without resigning the member's elected position.
Background
An elected official who is an active, an inactive or a retired member of ASRS or a member of ASRS with a disability is eligible for ASRS service credit for the elected official's service, if the elected official's employer is a participating ASRS employer.
An ASRS member's retirement is deemed to commence on a date elected by the member, which may not be earlier than: 1) the day after the termination of employment; 2) the date ASRS receives the member's completed retirement application; or 3) the date specified by a member who is employed for less than 20 hours per week and attains a normal retirement date and retires without terminating employment. All retirement benefits are normally payable in monthly installments beginning on the commencement of retirement. An ASRS member may elect to cancel the effective date of retirement within 30 days of retirement or before the member's receipt of retirement benefits, whichever is later. Statute requires ASRS employers to pay an alternate contribution rate on behalf of a retired member who returns to work with an ASRS employer in any capacity in a position ordinarily filled by an employee of the employer (A.R.S. ยงยง 38-766.02; 38-727; and 38-764).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows an ASRS member who is a state elected official and who attains a normal retirement date through employment other than as a state elected official to retire at any time without resigning the member's position as a state elected official.
2. Specifies that an ASRS member who is a state elected official who attained a normal retirement date through employment other than as a state elected official and retires is considered a retired member as of the date of retirement.
3. Requires an ASRS employer to pay the alternate contribution rate on behalf of the retired state elected official.
4. Makes conforming changes.
5. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Grants the authority to retire without resigning from the ASRS member's elected position to all state elected officials, rather than only term-limited state elected officials.
2. Requires an ASRS employer to pay the alternate contribution rate on behalf of a retired member who is a state elected official.
Senate Action
FIN 2/17/25 DPA 6-1-0
Prepared by Senate Research
February 18, 2025
MG/ci