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ASRS Legislative News

The 53rd Legislature – First Regular Session, opened on January 9, 2017. The Arizona State Retirement System has six bills that are before legislators. They all have relatively minor impact to members and retirees, mainly clarifying language in existing state statutes.

Below is a brief summary. You can also follow these and other retirement-related bills throughout the legislative session on our ASRS Bill Tracker.

House Bill 2166 – Return to Work This bill removes some language in existing law to make it more clear that ASRS employers who hire back ASRS retirees are subject to paying the Alternate Contribution Rate for that return-to-work retiree. The Alternate Contribution Rate, in law since 2012, mitigates the potential actuarial impact that retired members who return to work have on the Trust Fund.

House Bill 2167 – Contributions; Adjustments This bill clarifies the method in which the ASRS can return monies to employers who have overpaid contributions, ensuring compliance with the federal Internal Revenue Code.

House Bill 2168 – Reinstatement; Contribution Amount This bill modifies and clarifies language to existing statutes to indicate a member reinstating their service must repay the amount the “ASRS paid,” rather than the amount the “member received.” This clarifies some scenarios in which a member refunded their account at some point in time and the amount was subject to payment split due to a court order.

Senate Bill 1052 - Optional Retirement Benefits; Overpayment This bill clarifies existing statutes that require the ASRS to collect overpayments made to members on the ASRS Long Term Disability program after they begin receiving Social Security Disability, in the event that such overpayments have been made.

Senate Bill 1053 – ASRS Board Powers This bill amends existing powers of the Board of Trustees to create a Committee to hear appeals to now also hear appeals related to Long Term Disability. LTD appeals will be heard by the ASRS board Appeals Committee.

Senate Bill 1178 – Nonparticipating Employers; Liability This bill makes changes to the definition of a “nonparticipating employer” for the purposes of charging a liability created by an employer who either has current or prospective employees no longer participating in the ASRS. Such scenarios may occur if an employer ceases ASRS participation.

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