HB2007

House of Representatives

retirement; legislative employees option; transfers

Sponsors: Representative Kyle

X	Committee on Government Operations
	Committee on Rules
	Caucus and COW
	As Passed the House

HB 2007 allows a legislative employee who is a member of the Arizona State Retirement System (ASRS) to transfer all monies accrued by the member to a tax-deferred annuity and compensation program.

History

SB 1238, Ch. 329, Sec. 1, from the Forty-fourth Legislature, First Regular Session, added a third retirement option for ASRS members, which was classified as a 457 deferred compensation plan. Because of the tax status of a 457, members were unable to transfer the money already accrued by their current plan to the new option. The program is now classified as a 401(a) plan, which allows the transfer to be completed because of its tax-qualified status. This bill provides for the transfer of the member’s account.

Provisions

· Allows a legislative employee to request a transfer of their accrued liability as calculated by the fund to a tax-deferred annuity and compensation plan.

· States that a member who elects to participate in the tax-deferred annuity and compensation program, but does not request a transfer of their account (from ASRS to the tax-deferred annuity and compensation program), can collect the benefits accrued from ASRS upon retirement, in addition to the money from the tax-deferred annuity and compensation program. A member who elects to participate in the tax-deferred annuity and compensation program and transfers their ASRS account, waives the benefits of ASRS and does not receive benefits from ASRS upon retirement.

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· 44th Legislature Analyst Initials _______