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The Arizona State Retirement System has published a Substantive Policy Statement relating to Compensation for ASRS Purposes.

The Arizona State Retirement System (ASRS) marks its 65^th anniversary this year--celebrate 65 years of serving Arizona’s hard-working public servants.

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.

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.

After the close of each fiscal year, the ASRS conducts a valuation of the various benefit plans that it manages to ensure they are fiscally sound. From the valuations, contribution rates are set for the next fiscal year. Despite a relatively slow economy and lower investment performance, the contribution rates for the pension plan (which includes the health insurance premium benefit) will remain unchanged for the next fiscal year, which begins July 1, 2017.

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.