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Arizona Administrative Code

The Arizona Administrative Code is where the official rules of the state of Arizona are published. The Code is the official compilation of rules that govern state agencies, boards and commissions. The Arizona State Retirement System is responsible for ensuring that all ASRS rules, five-year-review reports and substantive policy statements meet statutory requirements and are clear, concise and understandable. ASRS official rules are published in the Arizona Administrative Code, and can be found in Title 2, Administration, Chapter 8, State Retirement System Board, of the Code. The Secretary of State provides an on-line version of the Code at: Arizona Administrative Code

Please be aware that Arizona Administrative Code is only updated every three months, and that newer rules may be in effect than the ones published in the Code. 

Below are the annual (calendar year) ASRS Regulatory Agendas:

 Regulatory Agenda - 2018

 Regulatory Agenda - 2017

 Regulatory Agenda - 2016

Information on Rules

Explanation of Rules

Generally speaking, a rule is an administrative law that is created by a government entity to clarify requirements the agency imposes on the public based on a statute that allows the agency to regulate certain activities.

According to the Arizona Revised Statutes, a rule is "an agency statement of general applicability that implements, interprets or prescribes law or policy, or describes the procedure or practice requirements of an agency. Rule includes prescribing fees or the amendment or repeal of a prior rule but does not include intra-agency memoranda that are not delegation agreements." A.R.S. § 41-1001(19).

Explanation of Substantive Policy Statements

According to the Arizona Revised Statutes, a substantive policy statement is “a written expression which informs the general public of an agency's current approach to, or opinion of, the requirements of the federal or state constitution, federal or state statute, administrative rule or regulation, or final judgment of a court of competent jurisdiction, including, where appropriate, the agency's current practice, procedure or method of action based upon that approach or opinion. A substantive policy statement is advisory only. A substantive policy statement does not include internal procedural documents which only affect the internal procedures of the agency and does not impose additional requirements or penalties on regulated parties, confidential information or rules made in accordance with this chapter.” A.R.S. § 41-1001(22).

In other words, substantive policy statements are filed with the Secretary of State in order to provide notice to the public about how an agency handles certain legal requirements, but substantive policy statements do not impose additional requirements on the public. Currently, the ASRS does not have any substantive policy statements on file with the Secretary of State.

ASRS Rules Procedures

The rulemaking process is the way government entities may create rules. There are four basic types of rulemaking: regular, exempt, emergency and expediated. The ASRS generally follows the regular rulemaking process, located in the Arizona Administrative Procedures act outlined in A.R.S 41-1001 through 41-1057.

Those procedures require various documents to be filed with the Secretary ofState and the Governor's Regulatory Review Council. The following documents must be filed in this order:

Notice of Docket Opening (NDO) - To inform the public that the agency is planning to change or add to its rules.

Notice of Proposed Rulemaking (NPR) - To inform the public of how the agency is going to change or add to the rules and allow a miniumum of 30 days for public comment.

Notice of Final Rulemaking (NFR) - To inform the public of how the agency has changed or added to the rules.

These documents are part of the rulemaking record and are available for public inspection at the ASRS Phoenix office.

Rulemaking Moratorium

Before engaging in the rulemaking process, the ASRS must obtain approval from the Governor’s Office for each specific rulemaking. Governor Doug Ducey instituted a rulemaking moratorium in Executive Order 2017-02 that will expire on December 31, 2017. The rulemaking moratorium requires most state agencies to seek approval from the Governor's Office before proceeding with rulemaking actions. The ASRS complies the Executive Order and seeks approval from the Governor’s Office before proceeding with any rulemaking actions. If the agency does not obtain approval from the Governor’s Office to proceed with the specific rulemaking, the agency cannot engage in the rulemaking process for that particular rulemaking.

Public Participation

There are multiple opportunities for members of the public to participate in and comment on the rulemaking process. Members of the public are welcome to contact the ASRS at any time to comment on exisitng rules. The public may also participate on proposed rules through written and oral comments. The ASRS schedules an Oral Proceeding for each rulemaking that is open to the public for comment. Oral Proceedings on ASRS proposed rules are generally held at the ASRS Phoenix office, and noticed on this page, under the Rules Under Development column.

For information or to comment on ASRS rules, please contact ASRS Rules Writer, Jessica Thomas, at [email protected] 

(Please note: Correspondence to and from this or other ASRS email addresses is subject to public disclosure under the Arizona Public Records Law.)

Additional Resources

Arizona Administrative Code

The Arizona Administrative Code is where the official rules of the state of Arizona are published. Please be aware that updates are published every three months and newer rules may be in effect.

Arizona Administrative Register

The Arizona Administrative Register is the official publication for tracking rulemaking actions from concept to completion. It is published regularly by the Secretary of State.

Secretary of State

The Secretary of State is the official publisher of the Arizona Administrative Code and the Arizona Administrative Register. The Secretary of State does not interpret or enforce administrative rules.

Governor's Regulatory Review Council

The Governor's Regulatory Review Council (GRRC) is a council of seven members appointed by the Governor to review agency rulemakings and Five-year Review Reports. Before submitting a Notice of Final Rulemaking to the Secretary of State for publication in the Arizona Administrative Register, an agency must obtain approval from GRRC. The council meets twice a month.

Required Notices

Substantive Policy Statement - Compension for ASRS Purposes

The Administrative Procedure Act requires the publication of substantive policy statements issued by agencies (A.R.S. § 41-1013(B)(15)). A substantive policy statement is a written expression which informs the general public of an agency's current approach to, or opinion of, the requirements of the federal or state constitution, federal or state statute, administrative rule or regulation, or final judgment of a court of competent jurisdiction, including, where appropriate, the agency's current practice, procedure or method of action based upon that approach or opinion.

 This substantive policy statement is advisory only. A substantive policy statement does not include internal procedural documents which only affect the internal procedures of the agency and does not impose additional requirements or penalties on regulated parties or include confidential information or rules made in accordance with the Arizona Administrative Procedure Act. If you believe that this substantive policy statement does impose additional requirements or penalties on regulated parties, you may petition the agency under A.R.S. § 41-1033 for a review of the statement.

 SUBSTANTIVE POLICY STATEMENT

The Arizona State Retirement System (ASRS) rules in the Arizona Administrative Code, Title 2, Chapter 8, Article 9, entitled Compensation and effective January 1, 2018 identify what payment types are compensation for ASRS purposes.  The following payment types were ASRS compensation prior to January 1, 2018, but are not compensation as of January 1, 2018:

          Non-accountable allowances, which means payments made to the member for costs incurred by the member incidental to the member’s job and for which the member is not required to provide proof of actual expenditures; and

•         Mandatory amounts paid under an Employer policy to reduce the member's accrued annual, sick or general leave balance to a prescribed maximum (if not paid because of a member’s pending termination or retirement).

 The ASRS intends to apply the new Compensation rule as it pertains to non-accountable allowances and mandatory leave payments prospectively only for employees whose ASRS membership began on or after January 1, 2018.   Employee members and employers who remitted contributions on non-accountable allowances and mandatory leave payments that were properly identified as compensation prior to January 1, 2018 should continue to remit contributions in the same manner for employees who became ASRS members prior to January 1, 2018 and receive payments for non-accountable allowances and mandatory leave. 

 APPLICABLE LAWS

Arizona Revised Statutes §§ 38-613, 38-711, 38-736, 38-737, 38-739, 38-746, 38-769, 38-797.05, 41-192

Arizona Administrative Code, Title 2, Chapter 8, Article 9

 Issued:            February 28, 2018

Effective:        February 28, 2018

 Filed with the Arizona Secretary of State on February 28, 2018

Ability to Petition

A person may petition the ASRS and/or the Governor’s Regulatory Review Council to review an agency rule or agency practice, pursuant to A.R.S. § 41-1033

To submit a petition to the Governor’s Regulatory Review Council, visit the council’s website

To submit a petition to the ASRS, contact Jessica Thomas at [email protected].  

 

Rules Under Development

The ASRS has filed a Notice of Proposed Rulemaking and Notice of Docket Opening to amend rules related to ASRS interest rates. See the documents below for information.

Also, an Oral Proceeding for this rulemaking is scheduled for April 16, 9 a.m., in the ASRS 10th floor Board Room, 3300 N. Central Ave., Phoenix, AZ 85012.

Notice of Docket Opening

Notice of Proposed Rulemaking 

Recent Rules Approved

 ASRS official rules are published in the Arizona Administrative Code and can be found in Title 2, Administration, Chapter 8, State Retirement System Board, of the Code. 

ASRS Five-year Review Report

On January 4, 2017, the Governor's Regulatory Review Council (GRRC) approved the Five-year Review Report on rules contained in 2 A.A.C 8, Article 7 relating to Contrbutions Not Withheld. The final report is located in the document below.

 ASRS Five-year Review Summary - Article 7 

On May 5, 2016, Governor's Regulatory Review Council (GRRC) approved the Five-year Review Report on rules contained in 2 A.A.C. 8, Article 6 relating to Public Participation in Rulemaking.  The final report is located in the document below.

 ASRS Five-year Review Summary - Article 6 

In 2015, the ASRS reviewed all of its rules in 2 A.A.C 8, Articles 1, 4 and 5 and obtained approval from the Governor's Regulatory Review Council (GRRC) at the Aug. 4, 2015 GRRC meeting. The final report approved by GRRC is located in the document below. The ASRS did not review R2-8-201 or R2-8-207 as scheduled and allowed those rules to expire.

 ASRS Five-year Review Summary - Articles 1, 4, 5

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