What is the ACR this year, and how is it determined?

For Fiscal Year 2024-25, which began July 1, 2024, the ACR is 10.19%. The ACR is determined on an annual basis along with the regular contribution rates (pension and LTD) for eligible employees and employers. The rates are typically approved by the ASRS Board of Trustees in November for the following fiscal year (beginning July 1), following a presentation by the ASRS actuary on the annual actuarial valuation of the plan.

Understanding the rules around hiring an ASRS retiree is important. While it is the member’s responsibility to ensure compliance with the ASRS Return to Work rules and statutes, it is also the employer’s responsibility to help ensure compliance. Failure to do so can result in suspension of benefits and repayment of unlawfully paid benefits. Employers should check the retirement status of all their new hires using the Check Member Eligibility Tool.

It’s almost that time of year for ASRS employers to attend the ASRS Annual Employer Conference. Registration will open in August for multiple conference dates in September and October. As an ASRS employer, it is your responsibility to attend the annual ASRS Employer Conference, as required by Arizona Revised Statute 38-716. 

Internal Revenue Code (IRC) section 401(a)17 limits compensation beyond which no further retirement contributions may be deducted from an employee’s earnable salary for a given year. This limit applies to all ASRS members, but the maximum of the limit differs depending on the member’s enrollment date.

Are you still receiving paper checks from the ASRS for Health Insurance Premium Benefits or Excess Benefits Arrangements? Did you know you can receive payments five to ten days faster -- and more securely -- by taking advantage of direct deposit?

Employers are strongly encouraged to begin this process now by completing the Employer/Vendor ACH Direct Deposit form, available in your Employer Secure Account on the Forms & Packets page. This process will allow you to receive the payment five to ten days faster each month.

ASRS employers have unique and statutory obligations to ensure employee participation, make required contributions, and process retiring employees. One of our priorities at the ASRS is to utilize technology to create efficient, user-friendly products to make meeting those obligations as easy as possible.

To that end, employers can now submit ACH miscellaneous payments through their Employer Secure Account. We highly encourage employers to take advantage of the electronic deposit method as soon as possible.

If you provide medical and/or dental insurance for your retirees or employees who are receiving Long Term Disability benefits, you must submit the Annual Employer Provided Health Insurance Plans and Premiums Packet (PPR) before your new plan year begins to continue receiving the correct premium benefit payment.

If you have a quick question about a new employee’s eligibility, how to complete an Ending Payroll Verification (EPV) form, apply a credit, pay a late fee, or update an employer web user’s role, you now have a new way to contact the ASRS! When you log into your ASRS Employer Secure Account, you may have noticed a blue button in the upper right-hand corner of your home page that says “Live Chat.”

On July 1, the ASRS will begin a new fiscal year – FY 2024-25.

Starting July 1, 2024, the new total contribution rate will be 12.27%, a slight decrease from fiscal year 2024 of 12.29%.