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Employer-Only Payments to Members' Deferred Compensation Plans

This spring, the ASRS began notifying employers about a ruling by the Arizona Supreme Court that changes the way the ASRS has interpreted the definition of ASRS compensation.  The ruling affects employer-paid contributions into deferred compensation plans for employees. 

New Trustees appointed to ASRS Board

Eight individuals have been appointed or reappointed to the Arizona State Retirement System (ASRS) Board of Trustees. Appointments are made by the Governor and confirmed by the State Senate.

Previously serving appointees are: Tom Manos, former County Manager of Maricopa County; Kevin McCarthy, president of the Arizona Tax Research Association, and Clark Partridge, State Comptroller with the Arizona Department of Administration.

Ruling changes ASRS compensation definition regarding employer-paid deferred comp payments

On March 23, 2017, in the case of Wade and Paddock v. ASRS (No. CV-16-0087-PR), the Arizona Supreme Court held that employer-paid contributions on behalf of an employee to a tax qualified deferred compensation plan – such as a 457 or 401(k) – are compensation and therefore require ASRS contributions.

Employee-paid contributions into these plans have always been considered compensation for ASRS purposes. This ruling adds employer-paid contributions are compensation as well.

ASRS Legislative News

The 53rd Legislature – First Regular Session, adjourned on May 10, 2017. The Arizona State Retirement System had five legislative initiatives pass into law. They all have relatively minor impact to members and retirees, mainly clarifying language in existing state statutes.

Below is a brief summary. You can also follow these and other retirement-related bills throughout the legislative session on our ASRS Bill Tracker.

New administrator selected to oversee ASRS LTD program

Broadspire Services Inc., a leading third-party administrator, will replace Sedgwick as administrtor of the ASRS Long Term Disability Program effective September 1.

The change should have no major impact for the more than 4,000 members currently on the ASRS LTD plan. A letter from Broadspire is being mailed to all current members receiving Long Term Dsiability benefits.

LTD members may contact Sedgwick with questions about their coverage through Aug. 31. All contact from Sept. 1 forward should be directed to Broadspire.

Service Purchase Program Roles: An Explanation

The ASRS has released new online functionality for the service purchase program.  The service purchase program is mainly a member-driven program; however, there are some aspects of the program that involve employers. 

Employers: Scheduled Website Maintenance

On Wednesday, January 17th scheduled maintenance of the Employer secure website will be conducted.

Power disruption affected some services Monday

An interruption in electrical power Monday afternoon to the ASRS building at 3300 N. Central Ave. in Phoenix caused disruptions in some services, including the ASRS Call Center and access to the secure member website The disruption began around 3 p.m. Monday and most all systems were restored by 1 a.m. The ASRS apologizes for any inconvenience to those who may have tried to call Monday afternoon or access certain applications on the secure website.

Employers: Assisting Your Employees with ASRS Enrollment

Have any of your employees ever asked about the mandatory contributions to the ASRS that come out of each and every paycheck? Help us ensure your employees understand the value of their ASRS membership!

Employers: Following the Rules

In an effort to reduce confusion among ASRS members and Employers, the ASRS is promulgating approximately five new rules that identify the various types of compensation that are used for ASRS purposes.  Effective January 1, 2018, the ASRS contributions and benefits will be based, in part, on the following compensation types:

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