ARIZONA STATE SENATE
Phoenix, Arizona
Purpose
Authorizes a state employee who is a member of the
Arizona State Retirement System (ASRS) and leaves employment due to
privatization of the employee’s position or a reduction in work force (RIFs) to
withdraw the member’s and employer’s retirement contributions. Authorizes a state employee who is a member
of either the Public Safety Personnel Retirement System (PSPRS) or the
Corrections Officer Retirement Plan (CORP) who leaves employment for either of
the above reasons to withdraw twice the employee’s retirement contributions.
Background
Last session, the Legislature passed a bill that allows
ASRS members to receive a portion of their employers’ contributions (up to 100
percent, depending on years of service) in addition to their own contributions
(Laws 1999, Chapter 327). The
legislation also permits members of the three smaller systems, PSPRS, CORP, and
EORP (Elected Officials’ Retirement Plan) to take approximately the same
portion of their contributions in
recognition of the fact that members of the three smaller systems contribute a
fixed and higher contribution rate than their employers. This bill attempts to provide an optional
severance package for state employees who lose their jobs due to privatization
or RIFs by allowing them to receive the maximum contribution return. As with last year’s legislation, this bill
recognizes that members of PSPRS and CORP contribute a fixed and higher
contribution rate than employers by allowing them to withdraw twice their
contributions as opposed to their employers’ contributions.
Provisions
1. Authorizes a member of ASRS who is a state employee and who leaves employment due to privatization of the member’s position or a reduction in workforce to withdraw the member’s contribution and all of the employer’s contribution plus interest as determined by the ASRS Board.
2. Authorizes a member of PSPRS or CORP who is a state employee and who leaves employment due to privatization of the member’s position or a reduction in workforce to withdraw twice the member’s accumulated contributions less any benefits the member has received or any amount the member may owe to the system.
3. Provides for a general effective date.
House Action
GOV OP 1/12/00 DPA 6-0-0-0
GOV REF 1/19/00 DP 6-0-0-0
3rd Read 2/9/00 57-0-3-0
Prepared by Senate Staff
February 28, 2000