ASRS Compensation, Redefined

On August 27, 2019, SB1018 redefined what ASRS compensation is for members that join the ASRS effective January 1, 2020 going forward.  It is important to remember that those who were members before January 1, 2020 will still have the same definition of compensation that we have today, through the remainder of their active membership.

On or after January 1, 2020, new ASRS members will have a simplified definition of compensation.  It will only include the gross wages paid to the member, by the employer, for services rendered to the employer during the period considered as credited service.

This will include pay for overtime, pay for using leave time, bonuses and performance pay (including Prop 301 for teachers).  It includes anything listed on the member’s W-2 as wages, tips, and other compensation for services rendered.  

For more information on compensation, make sure to visit the Employer page of AzASRS.gov.

by Michael McCarthy, Employer Relations

This article was first published in the Employer Update newsletter, 2019 Q4

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