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Changes to the Age 65+ Membership Waiver

For
Employer Partners

There’s an important change to the ASRS age 65+ membership waiver, and this one comes directly from Arizona law.

House Bill 2092 (HB 2092) changed when an employee age 65 or older may elect not to participate in the Arizona State Retirement System (ASRS). The change affects the timing of the 30-day waiver period and is particularly important for employees whose hours fluctuate. HB 2092 was signed into law on April 13, 2026, and became effective September 12, 2026.

What Changed?

The 30-day window for an employee who is 65 or older to opt out of participating in the ASRS now starts at their date of ASRS eligibility, NOT from their hire date. This is a change required by law, so employers should update their processes to follow the new eligibility-based timeframe.

What Does This Mean for Employers?

If an employee age 65 or older begins employment in a position that does not initially meet the ASRS membership criteria, the date of hire does not start the waiver clock. Employers should monitor employee hours to determine when the employee becomes eligible for ASRS participation and when the 30-day opt-out window begins.

Two Examples:

  1. ASRS-Eligible at hire date:
    An employee age 66 is hired to work 20 or more hours per week for at least 20 weeks. The employee is eligible for ASRS from the beginning of employment, so the 30-day waiver period begins at that time.

  2. NOT ASRS-Eligible at hire date:
    An employee age 66 is hired to work fewer than 20 hours per week. Several months later, the employee’s hours increase and they meet the ASRS membership criteria. The 30-day waiver period begins when the employee becomes eligible to participate in ASRS.

Reminder: The Waiver Is a Significant Election

The age 65+ waiver is more than an administrative form.

  • The election to waive ASRS membership must be made in writing
  • The election is irrevocable for the remainder of the employment for which the election was made
  • Constitutes a waiver of all ASRS benefits.
  • The member is not eligible to later purchase waived service under the applicable ASRS service-credit purchase provisions.

Note: Employees must also meet the other requirements in A.R.S. § 38-727(A)(8) to qualify for the waiver.

Updated Form

ASRS is updating the 65+ Membership Waiver form to reflect the changes required by HB 2092. The form is available through the Forms & Packets section of the Employer Secure Account.

Questions? Send us an Employer Secure Message (ESM), use Chat, or call the Employer Services Line at 602-542-2777.