Assigned to FIN                                                                                                                 FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1228

 

ASRS; compensation; senior management

 

Purpose

 

Authorizes the Arizona State Retirement System (ASRS) board to determine the compensation for members of ASRS senior management.

 

Background

 

            Currently, the Public Safety Personnel Retirement System (PSPRS) fund manager, administrator and all persons employed by them are exempt from the Department of Administration’s jurisdiction and statutes relating to the compensation of state employees. Instead, the fund manager solely determines the salaries of the administrator and other employees of PSPRS.  Additionally, contracts for goods and services are approved by the fund manager.

 

According to PSPRS, this method of compensation promotes better performance by the administrator because the fund manager can provide bonuses based on the administrator’s performance. S.B. 1228 authorizes the board to determine similar compensation of ASRS senior management.

 

Provisions

 

1.      Authorizes the ASRS board to determine the compensation of the Director, Deputy Director, any Assistant Director, the Chief Investment Officer, any Equity Portfolio Manager Trader and any Fixed Income Portfolio Manager Trader.

 

2.      Adds compensation expenditures authorized by the ASRS board to those funds continuously paid from the ASRS administration account.

 

3.      Provides for a general effective date.

 

 

Prepared by Senate Staff

January 24, 2001