Retirement is one of the most important milestones in an employee's career. Whether an employee is retiring, resigning, participating in a Reduction in Force (RIF), or separating from employment for any reason, accurate and timely reporting by employers plays a critical role in ensuring a smooth transition.
The actions taken, or not taken, during the final stages of employment can directly impact a member's ability to receive a retirement benefit, process a refund, or complete other ASRS transactions. In some cases, reporting delays or inaccuracies can even result in canceled retirement or refund applications.
The good news? With a little planning and communication, employers can help employees navigate this transition successfully.
Why Accurate and Timely Reporting Is So Important
When a member applies for a retirement benefit or refund, ASRS must verify that the member has separated from employment and that all final payroll information has been reported accurately.
Delays in reporting final wages, contribution payments, or termination information may prevent ASRS from completing the member's application. This can result in:
• Delayed processing and payments.
• Additional requests for information.
• Canceled retirement or refund applications if separation requirements are not met.
• Frustration for both the member and the employer.
Employer Responsibilities When an Employee Separates
Arizona law places specific responsibilities on employers regarding employee participation and reporting to ASRS. Pursuant to A.R.S. § 38-735 and A.R.S. § 38-716, employers are responsible for accurately reporting compensation, contributions, employment status, and other information required to administer ASRS benefits.
When an employee separates from employment, employers should:
Submit Final Payroll Information Promptly
All compensation and contributions must be reported accurately and submitted promptly to avoid delays in processing member benefits.
Complete Ending Payroll Verification Requests
When a member applies for a retirement benefit or refund, ASRS may request an Ending Payroll Verification (EPV).
Timely completion of EPV requests is one of the most important steps employers can take to help members avoid delays.
Respond Promptly to ASRS Inquiries
If ASRS contacts an employer regarding a retirement, refund, or separation issue, prompt responses can significantly reduce processing delays.
Special Considerations During a Reduction in Force (RIF)
Workforce reductions often involve multiple employee separations occurring within a short period of time. During a Reduction in Force, employers should pay particular attention to:
• Accurate termination reporting.
• Timely submission of final payroll and contributions.
• Responding to Ending Payroll Verification requests and noting that the separation was due to a Reduction in Force (RIF) to help ensure the correct payment of all eligible contributions.
Communicating with affected employees regarding ASRS resources.
Planning ahead can help ensure impacted employees receive accurate information and avoid unnecessary delays during an already stressful transition.
Members Have Responsibilities Too
While employers play an essential role, members are ultimately responsible for understanding their retirement options and maintaining their ASRS account information.
Encourage employees who are considering retirement or separation to review their ASRS account regularly, verify that their personal information is current, and contact Member Services with account-specific questions at 602-240-2000 or send a secure message through their secure account.
Employers should avoid providing retirement counseling or benefit estimates and instead direct members to ASRS Member Services for personalized assistance.
A Successful Retirement Starts Before the Last Day of Work
One of the most effective ways employers can support their workforce is by helping employees prepare for retirement or separation before their final day of employment.
Accurate reporting, timely contribution submissions, and prompt completion of Ending Payroll Verification requests help ensure members receive the benefits they have earned without unnecessary delays.
Retirement processing is a partnership between ASRS, employers, and members. When everyone understands their responsibilities, the result is a smoother experience for all involved.
As always, if you have questions regarding separation reporting, Ending Payroll Verification requests, or employer responsibilities, the Employer Services team is here to help. Please send us a secure message, a live chat, or call the New Employer Services Line 602-542-2777.
