ASRS Defined Benefit Plan
The Arizona State Retirement System Defined Benefit Plan provides for lifelong monthly retirement income for qualified members.
The plan is tax-qualified under section 401(a) of the Internal Revenue Code. It is a “cost-sharing” model, meaning both the member and the employer contribute equally. Members also participate and contribute to the ASRS Long Term Disability Income Plan, which provides benefits for actively contributing members.
Contribution rates as a percent of pay are actuarially determined and adjusted annually to ensure the plan remains fiscally sound and able to meet current and future obligations.
There are two portions to the ASRS contribution rate - the Retirement Pension & Health Insurance Benefit, and the Long Term Disability Income Plan. The Pension Plan contribution is a pre-tax deduction, and the Long-Term Disability deduction is post-tax. Tax on pension benefits is deferred until payment is made to the member as a benefit or refund.
The Fiscal Year, How Rates Are Determined, How Often They Change
The fiscal year for the ASRS is from July 1 to the following June 30. Each July 1, the new contribution rate takes effect. This rate could increase, decrease, or stay the same from the previous year. Based on current projections, we’re optimistic that contribution rates will remain stable, if not on a slight downward trend, for the foreseeable future.
Contribution Rates
Fiscal Year 2024-25. Effective July 1, 2024
| PENSION & HEALTH INSURANCE BENEFIT | LONG TERM DISABILITY INCOME PLAN | TOTAL | |
|---|---|---|---|
| Employee | 12.12% | 0.15% | 12.27% |
| Employer | 12.12% | 0.15% | 12.27% |
Fiscal Year 2025-26. Effective July 1, 2025
| PENSION & HEALTH INSURANCE BENEFIT | LONG TERM DISABILITY INCOME PLAN | TOTAL | |
|---|---|---|---|
| Employee | 11.86% | 0.14% | 12.00% |
| Employer | 11.86% | 0.14% | 12.00% |
Alternate Contribution Rate - for Retired, Returned to Work MembersFor members who retire, then returned to work for an ASRS employer while keeping their monthly pension, an Alternate Contribution Rate (ACR) is required. Read more on the ACR page.
Historical Contribution Rates: 1953-present
Log in to Check Your Balance
By logging in to your secure myASRS account, you can see your contribution history as well as service credit and benefit estimates based on those contributions.
Why do contribution rates fluctuate?
In simple terms, to keep our pension system healthy. Contribution rates are determined each year through an actuarial evaluation conducted by an external actuary. In addition to the yearly evaluation, every four to five years a deeper analysis in performed, called an “experience study.” These studies evaluate our current assumptions - everything from investment performance to current average lifespan - whether or not those assumptions need to be adjusted going forward, and what effect those adjustments are projected to have over the next 30 years.
While these experience studies don’t outline exactly what future contribution rates will be, it does serve as an important piece of the puzzle that we use to determine a path forward, with the goal of continuing to be a healthy, properly funded retirement system.
