For those who attended our ASRS Employer Conference recently and selected the Compensation and Contribution Reporting breakout session, you were reminded about Termination Incentive Programs. This article serves to reinforce what you learned, just with less legalese and more layman's terms.
Basically, Arizona Revised Statute 38-749 makes sure that employers do not create an unfunded liability when they offer special programs to employees to retire. These programs are called "termination incentive programs.”