community colleges; optional
retirement; contributions
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Committee on Retirement & Government Operations |
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Committee on Education |
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Caucus and COW |
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As Passed the House |
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SB 1155 allows community college district employees who had not previously opted to participate in the optional retirement program (ORP) established by community college district boards another opportunity to participate in ORP and allows employers to contribute more on behalf of employees.
In 1995, the Arizona State Legislature authorized an optional retirement program (ORP) for community college employees similar to the existing program for state university employees. ORP was designed to be optional for each community college district so that individual community college boards could decide whether to offer ORP’s within their district. ARS §15-1451 allows a community college district board to establish ORP for employees under which contracts providing retirement and death benefits may be purchased.
Currently, eligible employees may elect to participate in ORP within thirty days of the employee’s effective date of employment or, for employees that are members of the Arizona State Retirement System (ASRS), on the date the program becomes effective. The decision to participate in ORP is irrevocable. Currently, the community college district board must make contributions on behalf of each participant in the ORP program in an amount equal to the ASRS employer contribution rate. Conversely, statute allows the employee contribution rate to be greater than the ASRS employee contribution rate.
· Adds a third time frame between October 1, 2001 and December 31, 2001 during which an eligible member of ASRS may elect to participate in ORP.
· Requires a community college district board to make contributions on behalf of each participant in ORP in an amount that is at least equal to the ASRS employer contribution rate but not to exceed seven per cent of the participant’s compensation.
· Makes technical and conforming changes.