ARIZONA STATE SENATE
Phoenix, Arizona
CORRECTED
ASRS; benefits; increases
Purpose
Permits Arizona State Retirement System (ASRS) retirees who are less than 55 years of age to receive permanent benefit increases.
Background
Currently, ASRS retirees who
are younger than 55 years of age are not eligible to receive excess earnings
permanent benefit increases (PBIs).
PBIs are also known as cost of living adjustments (COLAs) and refer to money
available to fund retirement benefit increases based on the amount of earnings
ASRS earns over a set percentage. There
are approximately 1,150 retirees or their beneficiaries who are excluded from
PBIs because of this age requirement.
There is no fiscal impact to
this bill because the dollars put into the excess earnings reserve will not
change as a result of eliminating the minimum age requirement. Rather, the number of people eligible to
receive this benefit will increase, resulting in a minor reduction in the PBI
to currently eligible members. ASRS
actuaries estimate that S.B. 1320 will reduce the PBI from $29.49 to $28.62 per
year of credited service, resulting in an average PBI reduction of $1.50 per month.
Provisions
1. Permits ASRS retirees who are less than 55 years of age to receive permanent benefit increases.
2. Moves back, by one month, the date by which a retiree must be retired to receive a PBI (July 31).
3. Makes a technical and a conforming change.
4. Provides for a general effective date.
Senate Action
FIR 2/2/00 DP 6-0-1-0
3rd Read 2/23/00 28-2-0-0
Prepared by Senate Staff
March 6, 2000