Here's What's New!

A formula that is very important at the ASRS, but one that most of us would not learn about outside of retirement fund management: 

C + I = B + E

Contributions plus Income equals Benefits plus Expenses. This is the essence of how your retirement system is funded! A description of these four factors:

The ASRS Service Purchase Program is a benefit that allows active members with previous qualifying service to purchase past service time. There are 5 types of qualifying service, with the most common being the purchase of Forfeited Service or the purchase of Other Public Service. While it can be costly, it can also be beneficial - potentially increasing your lifetime benefit and/or allowing you to retire earlier than planned.

In this infographic, we look at an example of an ASRS member with an estimated refund of $10,000 to see how taxes apply, what penalties may be assessed, and what the estimated remaining cash amount could be. (Along with options available to avoid those penalties and taxes.)

A look at "Route 4: Next Exit Retirement" - the final session of our four-part educational series, geared towards members thinking of retiring within 6 months. 

Vesting is a term used often when discussing a retirement account. However, the ASRS benefit programs do not have a “vesting” schedule. Members must meet certain requirements before being eligible to receive retirement benefits, health insurance, premium benefit subsidy, long-term disability, or participate in the ASRS service purchase program.

Refund/Forfeiture

When one of your employees asks about “vesting” with the ASRS, often these members may be referring to the percentage of employer funds they might receive if they decide to refund their account.

For many, a new year often brings new goals and resolutions. Is one of your resolutions for 2021 to start saving money? While one of the most comforting features of a future ASRS pension is knowing you’ll have a steady, guaranteed income stream, your ASRS retirement benefit, by design, is not intended to replace your entire working income. Instead, it is designed to be one piece of the pie that makes up your retirement plan. The other pieces of that pie? Social Security and personal savings. Here are some tips to make getting started on a personal savings plan a tiny bit easier: 

As a member of the Arizona State Retirement System, you make contributions with each of your paychecks. Both you and your employer contribute equal amounts, which are invested to generate revenue and build the ASRS trust fund, which in turn pays your guaranteed lifetime pension benefit upon retirement. These contributions, plus interest, combine to form your account balance.