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ASRS to Issue Permanent Benefit Increases to Qualified Retirees

The Arizona State Retirement System Board of Trustees announced Friday, November 12, 2021, that qualified retirees will receive a Permanent Benefit Increase (PBI) to their monthly annuities, beginning with their July 2022 benefits check.

This PBI is made possible from an accumulation of excess returns over the past several years, including the most recent total fund return of 25.1 percent for the fiscal year ending June 30, 2021.

“This certainly is good news for our retirees,” Board Chair Rene Guillen said at Friday’s board meeting. “We are very pleased that our plan is in a position to provide for a benefit increase this year, something we know retirees have been anxious to see.”

To qualify for this PBI, retirees must have an original ASRS membership date of Sept. 12, 2013, or earlier, and have retired by July 31, 2021.

The increase will be set at $11.49 for each year of service a retiree accumulated at retirement.

Here’s an example of the formula to be used for a qualified retiree with 20 years of service at the time of retirement:
$11.49 X 20 years of service = $229.80 annual PBI, divided by 12 months = $19.15 increase to monthly benefit payment

Arizona Revised Statute (A.R.S.) § 38-767 prescribes that a Permanent Benefit Increase (PBI) may be provided to eligible retirees if excess investment earnings build up an available fund from which to pay an increase to the base benefit. An accumulated fund of approximately $351 million provided sufficient funds for this year’s increase.

Retirees and active members with an ASRS membership date of Sept. 13, 2013, or later are not eligible for a Permanent Benefit Increase. Members who retired choosing a lump-sum benefit instead of a monthly benefit are also not eligible for the PB.

Retirees can check years of service and retirement date by logging into their secure account at myASRS Login

To learn more about the Permanent Benefit Increase, see www.azasrs.gov/content/permanent-benefit-increase

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