Home

davidc's blog

New Trustees appointed to ASRS Board

Eight individuals have been appointed or reappointed to the Arizona State Retirement System (ASRS) Board of Trustees. Appointments are made by the Governor and confirmed by the State Senate.

Previously serving appointees are: Tom Manos, former County Manager of Maricopa County; Kevin McCarthy, president of the Arizona Tax Research Association, and Clark Partridge, State Comptroller with the Arizona Department of Administration.

Ruling changes ASRS compensation definition regarding employer-paid deferred comp payments

On March 23, 2017, in the case of Wade and Paddock v. ASRS (No. CV-16-0087-PR), the Arizona Supreme Court held that employer-paid contributions on behalf of an employee to a tax qualified deferred compensation plan – such as a 457 or 401(k) – are compensation and therefore require ASRS contributions.

Employee-paid contributions into these plans have always been considered compensation for ASRS purposes. This ruling adds employer-paid contributions are compensation as well.

ASRS Legislative News

The 53rd Legislature – First Regular Session, adjourned on May 10, 2017. The Arizona State Retirement System had five legislative initiatives pass into law. They all have relatively minor impact to members and retirees, mainly clarifying language in existing state statutes.

Below is a brief summary. You can also follow these and other retirement-related bills throughout the legislative session on our ASRS Bill Tracker.

Contribution Rates to remain stable

After the close of each fiscal year, the ASRS conducts a valuation of the various benefit plans that it manages to ensure they are fiscally sound. From the valuations, contribution rates are set for the next fiscal year. Despite a relatively slow economy and lower investment performance, the contribution rates for the pension plan (which includes the health insurance premium benefit) will remain unchanged for the next fiscal year, which begins July 1, 2017.

New fiscal year, new contribution rate

New contribution rates for members and employers are set to take effect with July payrolls. The total contribution rate for the defined benefit plan, health insurance supplement and long term disability plan will be 11.48 percent for both employer and employee, up just slightly from the rate of 11.47 percent for last fiscal year, which ended June 30. The new rate will be in effect through June 30, 2017. See Contribution Rates for more information.

New administrator selected to oversee ASRS LTD program

Broadspire Services Inc., a leading third-party administrator, will replace Sedgwick as administrtor of the ASRS Long Term Disability Program effective September 1.

The change should have no major impact for the more than 4,000 members currently on the ASRS LTD plan. A letter from Broadspire is being mailed to all current members receiving Long Term Dsiability benefits.

LTD members may contact Sedgwick with questions about their coverage through Aug. 31. All contact from Sept. 1 forward should be directed to Broadspire.

Power disruption affected some services Monday

An interruption in electrical power Monday afternoon to the ASRS building at 3300 N. Central Ave. in Phoenix caused disruptions in some services, including the ASRS Call Center and access to the secure member website The disruption began around 3 p.m. Monday and most all systems were restored by 1 a.m. The ASRS apologizes for any inconvenience to those who may have tried to call Monday afternoon or access certain applications on the secure website.

March Board, Investment Committee meetings canceled

Please note that the Board of Trustee meeting and the Investment Committee meeting originally scheduled for March have been canceled. The next scheduled Board meeting will be Friday, April 28 at 8:30 a.m. in the Board Room of the ASRS building, 3300 N. Central Ave., Phoenix. The next Investment Committee will be Monday, April 24 at 2:30 p.m. in the 14th floor conference room at the ASRS building.

External Affairs meeting Scheduled for Friday

Please be advised that the External Affairs Committee will meet on Friday, Oct. 14 at 10:30 a.m. in the 14th Floor Conference Room at the ASRS Phoenix office, 3300 N. Central Ave. See the Board & Committee Meetings page for the agenda for this meeting and a listing of upcoming meetings.

New fiscal year, new contribution rates

Contribution rates for members and employers have been set for next fiscal year, which begins July 1, 2017.

The total contribution rate for the defined benefit plan, health insurance supplement and long term disability plan will be 11.50 percent for both employer and employee, up just slightly from the total rate of 11.48 percent for the current fiscal year, which ends June 30, 2017.

The new rate will be in effect through June 30, 2018. See Contribution Rates for more information.

Pages

Subscribe to RSS - davidc's blog