House of Representatives

HB 2010

ASRS; benefit formula; graded multiplier

Sponsors: Representative Brimhall

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

HB 2010 provides for a graduated retirement formula multiplier increase, which is, based on the years of service for the defined benefit Arizona State Retirement System (ASRS) members.

History

SB 1083, Ch. 327, from the Forty-fourth Legislature, First Regular Session, increased the retirement formula multiplier from 2.0 per cent to 2.1 per cent, giving all defined benefit ASRS members and retirees a five per cent monthly compensation increase. A retired member’s monthly compensation is calculated by the member’s years of service multiplied by 2.1 per cent.

Provisions

Establishes a graduated retirement multiplier which begins at 2.1 per cent for members with less than 15 years of service, and increases as follows:

· 2.2 per cent if the member has 15 or more years of service but less than 18 years.

· 2.3 per cent if the member has 18 or more years of service but less than 22 years.

· 2.4 per cent if the member has 22 or more years of service but less than 25 years.

· 2.5 per cent if the member has 25 or more years of service.

· Caps the member’s monthly compensation at 80 per cent of the member’s average monthly compensation.

· Provides, retroactively, for the same graduated multiplier increases to current retired defined benefit ASRS members.

· Provides a delayed effective date of June 30, 2001.

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· 44th Legislature Analyst Initials _______

· Second Regular Session January 21, 2000

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