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
DPA	Caucus and COW
X	As Transmitted to the Governor

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.

· Requires the Board to begin phasing in the use of the EAN cost method over a ten-year period of time beginning with the June 30, 2002 valuation of ASRS and for the employer contributions payable beginning on July 1, 2003.

· Provides that the amortization-funding period is a rolling twenty-year period.

· Makes technical and conforming changes.

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· 44th Legislature

· Second Regular Session 2 May 2, 2001

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