employer news

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.

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%.

When an ASRS member applies for retirement or a refund of contributions, the ASRS may be required to request an Ending Payroll Verification Form (EPV) from our employer partners to where the member has made contributions. 

For retiring members, the ASRS will generate an EPV request to all employer partners that remitted contributions within the last 36 months. For refunding members, the EPV is generated for all employer partners that remitted contributions within the last 6 months. 

In general, vesting refers to a member’s ability to refund all of their contributions paid into a retirement plan. In ASRS terms, our members are ‘vested’ with their first contribution towards their retirement. This allows our members to take retirement even if they only have one month of service credit with the ASRS and would be eligible for ASRS health insurance. 

When an ASRS member terminates their employment, they would have the option to refund all of their contributions plus any applicable interest.

For many employees, retirement can be overwhelming and exciting all at the same time! Employees and employers alike are curious about what is required during this process. The ASRS has the following essential information to assist along the way. 

Resources for Retiring Employees

Welcome to your new monthly newsletter, ASRS In Focus!

We recognize the importance of connecting with you, our employer partners, and have rethought the best way to deliver meaningful content that fits your schedule best.

Did you know there are contribution and pension benefit limits for employees making over a certain amount? Referred to as “415 Limits” based on the Internal Revenue Code (IRC) Section 415, this can be a set of not-well-known, not-often-used rules for employers and their high-earning employees. But for those they apply to, 415 limits have a big impact. Below is an explanation of what 415 limits are, how the excess benefit is administered.

Are you an employer who has vacancies to fill?

While the answer could be to hire retired ASRS members, do not forget that an Alternate Contribution Rate (ACR) is required should you choose to do so.

All ASRS employers are required to pay an ACR for all retired ASRS members who return to work in any capacity, are not actively contributing, and in any position that is similar in duties and responsibilities to that of a position ordinarily filled by an employee.