employer news

Members receiving Long-Term Disability (LTD) benefit payments, are eligible to elect health coverage through the Arizona State Retirement System (ASRS) Retiree Group Health Insurance Program. 

To qualify for the Health Insurance Premium Benefit Program which supplements their health insurance costs, the member must have at least five years of credited ASRS service and receive their group health insurance coverage either through an ASRS employer or through the ASRS Retiree Group Health Insurance Program.

One of the most important employer responsibilities when reporting ASRS contributions is ensuring that compensation subject to the IRS maximum compensation limits is reported accurately. While these limits affect a relatively small number of employees, incorrect reporting can have a significant impact on member benefits, employer records, and future retirement calculations.

What Are the 401(a)(17) and 415 Limits?

Retirement is one of the most important milestones in an employee's career. Whether an employee is retiring, resigning, participating in a Reduction in Force (RIF), or separating from employment for any reason, accurate and timely reporting by employers plays a critical role in ensuring a smooth transition.

The Arizona State Retirement System is excited to announce a major enhancement to the Premium Benefit (PB) process for ASRS employers who provide retiree and COBRA insurance coverage eligible for the ASRS PB.

As a result of valuable feedback from our employer partners, combined with a detailed analysis of process improvement opportunities, the ASRS has successfully migrated the PB process into the Employer Portal for the new fiscal year.

Can a member receive Workers' Compensation and still apply for Long Term Disability (LTD)? 

Yes. A member may be eligible for LTD benefits while receiving Workers' Compensation. However, LTD benefits may be reduced due to the payments received from Workers' Compensation. 

In some cases, a member may work at a limited capacity or intermittently while on Workers' Compensation and still qualify for LTD benefits. 

Employer Responsibilities 

As we wrap up Fiscal Year 2026 and prepare to welcome Fiscal Year 2027, the Arizona State Retirement System (ASRS) Contribution Accounting Team would like to share a few important reminders and best practices to help make year-end reporting smooth, accurate, and stress-free.

Fiscal Year Contribution Rate Changes

Please ensure your payroll systems are updated with the new FY2027 contribution rates:

Fiscal Year Retirement Rate LTD Rate

Beginning April 21, ASRS will transition to ID.me to enhance account security and help protect sensitive information. To help ensure a smooth transition, we encourage all employers to review their Employer Secure Account before that date.

Please make sure:

A Guide for ASRS Employers & Retiree Checklist 

As we approach retirement season, the Arizona State Retirement System (ASRS) experiences a significant increase in retirement applications and benefit processing. During this critical time, employers play a direct and essential role in ensuring timely and accurate retirement processing.

ASRS relies on employer-reported information to finalize benefits and issue payments. Delays, missing data, or incomplete submissions can directly impact a member’s retirement timeline.

Broadspire will transition ASRS member information to the new My LeaveTech Connect portal, providing enhanced access to claim information and improve user experience.

This transition is scheduled for April 2026. Additional details, including access instructions, will be shared closer to the migration date.

What you need to do now:

To ensure a smooth transition, confirm your email address is current in your employer profile within the secure ASRS portal. 

What Employers Need to Know

As employers continue to modernize onboarding processes, the use of electronic signatures has become increasingly common and often encouraged. However, when it comes to the ASRS 65+ Membership Waiver, it is essential that digital signatures meet specific standards to ensure the form is valid and can be accepted without delay.

This article outlines acceptable electronic signature methods, employer responsibilities, and key compliance requirements to help prevent rejected forms and support a smooth onboarding experience.