Legislative Wrap-Up

The State Legislature adjourned April 24 in what was a relatively uneventful session for new or revised laws that will affect ASRS members and retirees.

Several bills that are important to the ASRS did pass and have been signed into law. But for the most part, they affect policies and procedures that will not have a significant effect on the majority of members.

One major change is contained in House Bill 2050, which has been signed into law and will be effective July 24. It eliminates the long-standing requirement that members must be covered by an employer’s Social Security 218 Agreement to be eligible for membership in the Arizona State Retirement System.

While the vast majority of ASRS members do participate in and contribute to the federal Social Security program, there are some individuals who are contributing to the ASRS and not to Social Security, due to the unique nature of their employment position. This bill eliminates the requirement that a member must be covered under a 218 Agreement and allows them to remain in the ASRS but with credited service commencing on July 24, 2014.

This bill does not allow those already contributing to Social Security to opt out.

Another bill, House Bill 2039, relates to charter schools. It will allow a charter school that is sponsored by a state university to be eligible for membership in the ASRS.

See a more complete summary from the 2014 Legislative Session on our website.

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