House of Representatives

HB 2004

ASRS; actuarial computation method

Sponsors: Representatives Brimhall, Gray, Senator Cirillo

DPA	Committee on Retirement & Government Operations
DPA	Committee on Appropriations
X	Caucus and COW
	As Passed the House

HB 2004 changes the actuarial computation method for the Arizona State Retirement System (ASRS) from the projected unit credit (PUC) method to the entry age normal (EAN) cost method.

History

Laws 2000, Chapter 341, established the ASRS Actuarial Computation Method Study Committee. This committee was charged with examining and comparing actuarial computation methods that may be appropriate for ASRS, including the EAN cost method and the PUC method. This legislation is a result of the discussions and study of the ASRS Actuarial Computation Method Study Committee.

Provisions

· Changes the ASRS computation funding method from the PUC to the EAN cost method.

· Specifies that the EAN cost method shall be used beginning with the June 30, 2002 valuation and employer contributions payable beginning July 1, 2003.

· Changes the amortization-funding period from a rolling thirty-year period to a rolling twenty-year period.

· Makes technical and conforming changes.

HB 2004 was amended in Retirement & Government Operations Committee to make technical changes.

HB 2004 was amended in the Committee on Appropriations to phase in the EAN method of actuarial computation over a ten year period.

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44th Legislature

Second Regular Session 2 March 1, 2001

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