65+ Membership Waiver

Can someone opt out of participating in the Arizona State Retirement System? New employees of ASRS employers may be eligible to waive participation in the ASRS, but only if they meet certain criteria.

To be Eligible to Opt Out

Beginning August 2, 2012, a new employee who is not a member of the ASRS, who is already at least 65 years of age on the first day of employment, and for whom the ASRS receives a completed 65+ Membership Waiver within 30 days of employment is exempt from ASRS membership. (A.R.S. § 38-727(A)(8))

ASRS retirees, members who are inactive, and those currently receiving ASRS long term disability benefits are members and this waiver is not applicable to them. A former member who has previously forfeited/refunded their ASRS membership is no longer an ASRS member, and therefore could be eligible to opt out of the ASRS. 

New employees who wish to opt out of ASRS must do so by completing the 65+ Membership Waiver form, which must be obtained from the ASRS employer. The election to waive membership is irrevocable for the remainder of their employment with that employer and constitutes a waiver of all benefits provided by the ASRS, including the ability to purchase the time of employment as service credit in the future. 

Each time a 65+ Membership Waiver is approved by the ASRS, it is applicable only to that period of employment at that employer. The waiver is not transferable to employment at additional ASRS employers and is not valid for future rehire at the same employer. A new waiver is required for employment at a different employer or for a new period of employment at a previous employer.

Employer Responsibility

Provide the 65+ Membership Waiver form to new employees who meet the criteria to opt out of ASRS membership and submit any completed waiver form to the ASRS within 30 days of the start of employment using Secure Messages. Do not mail or fax the form.

Be aware that the 30 days from start of employment refers to the original start of employment, not the date the employee meets “20/20” membership criteria. This means you may provide the waiver to a new employee who is hired to work below 20/20 criteria. If a new employee begins employment below 20/20 and does not waive membership, they will be unable to waive membership later on if their employment increases and meets 20/20 criteria after more than 30 days of employment.

Employers can access the waiver by logging into the secure employer website and downloading it from the Forms & Packets page. The waiver form is not available for public download. 

More information is available in the ASRS Employer Manual, Chapter 4. The Employer Manual is available for download on the Employer Reference Materials page.

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