Notice to Members Regarding ASRS Service Purchase

In May 2014, the Arizona Court of Appeals issued a formal Opinion in the lawsuit Pendergast v. ASRS, a case that involves ASRS service purchase options.

The appeals court ruled that a 2011 legislative amendment that limits service purchase to a maximium of  five (5) years of specific service types unconstitutionally diminishes and impairs the public retirement system benefits of an ASRS member whose membership date preceded the legislative amendment.

At the May 23, 2014 Board of Trustees meeting, the Trustees moved to file a Petition for Review of the Court of Appeals Opinion with the Arizona Supreme Court. As a result, the Opinion from the Court of Appeals is stayed until either A) the Arizona Supreme Court declines to review the case, or B) the ASRS Petition is accepted and the Arizona Supreme Court Court issues a ruling on the matter.

Until the Arizona Supreme Court takes either action, the ASRS will continue to follow current statutes, which limit to five (5) years the amount of service a member may purchase for each of the categories of: Other Public Service, Military Service, and Leave of Absence.

As litigation developments occur, the ASRS will issue information on any changes that may or may not be implemented.

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