HB2048

House of Representatives

ASRS; benefits; graded multiplier

Sponsors: Representatives Brimhall, Hatch-Miller

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

HB 2048 establishes a schedule of increases to the benefit multiplier for the Arizona State Retirement System (ASRS) members when they reach 15 years of credited service. The schedule increase reaches a maximum benefit multiplier of 2.5% when an employee reaches 25 or more years of credited service.

The proposed strike-everything amendment to HB 2048 creates a joint legislative task force on voluntary employee benefits associations (VEBAs).

History

A VEBA is a tax-exempt trust (501 c, 9), which enables employers to make deposits into an account on behalf of employees, enabling them to obtain tax-free reimbursements for medical expenses and insurance premium deposits.

Provisions

· Creates an 11-member joint legislative task force on VEBAs comprised of the following members:

1) Two members of the Senate, the chairman of the Senate Finance Committee will cochair the task force.

2) Two members of the House of Representatives, the chairman of the Retirement & Government Operations will cochair the task force.

3) Three members appointed by the Governor.

4) Two retired public members.

5) Two active public members.

· Charges the task force with reviewing and analyzing VEBAs to determine whether VEBA plans shall be adopted for use by the state, political subdivisions and school district employees.

· Requires the task force to submit a report by December 31, 2001 to the Governor and the Legislature.

· Allows the task force to use the services of legislative staff.

· Repeals the task force January 1, 2002.

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· 45th Legislature