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Yes, You Can Take It With You!

Thinking about changing jobs?

The ASRS is a defined benefit plan and is tax qualified under section 401(a) of the Internal Revenue Code. It provides for a lifelong benefit based on years of service earned, or worked, and your ending salary. It is not the same structure as a 401(k) or other defined contribution plans, which provide for a benefit based upon dollars contributed, plus interest earned.

The ASRS is a defined benefit plan and is tax qualified under section 401(a) of the Internal Revenue Code. It provides for a lifelong benefit based on years of service earned, or worked, and your ending salary. It is not the same structure as a 401(k) or other defined contribution plans, which provide for a benefit based upon dollars contributed, plus interest earned.

Did you know that your retirement pension is totally portable? The Arizona State Retirement System (ASRS) has over 700 employers representing all levels of education, counties and State service. This means, if you leave one ASRS employer to work for another ASRS employer, your years of service and accrual pick up exactly where they left off—you don’t lose your current service credit or funds accrued to-date! Having a portable pension allows you to make career decisions that benefit you without worrying about how it will impact your future retirement.

 

For a list of ASRS employers, visit: https://www.azasrs.gov/content/list-employers

 

What about past service?

Have you previously worked in public service out of state, or serve in the military? Eligible ASRS members can actually “buy back” previous service for qualified employment types such as teaching positions in another state, federal government or military service, even previously forfeited public service. Purchasing prior service may increase your monthly retirement benefit and/or allow you to retire at an earlier date! Our online Service Purchase wizard makes the process easy.

 

Log into your myASRS account to get a cost estimate for purchasing your past service: https://secure.azasrs.gov/web/Login.do

 

To learn more about Service Purchase: https://www.azasrs.gov/content/service-purchase

 

With ASRS pension portability, you CAN take it with you!

 

Written by Pamela Foust, Strategic Communications

This article appeared in "Financial Horizons " (Q3-2018) , a publication of the ASRS

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