ARIZONA STATE SENATE
Phoenix, Arizona
CORRECTED
ASRS; retirees; return to
work
Purpose
Allows any member of the
Arizona State Retirement System (ASRS), not just teachers, to return to work
and still be eligible to receive retirement benefits.
Background
In 2000, the Legislature
allowed certificated retired teachers to return to work with retirement benefit
eligibility if they have attained normal retirement age and have terminated
employment at least one year before returning to work. In addition, their
employment must not be subject to dismissal due process protection and they
must acknowledge in writing the terms and conditions of retired re-employment.
It was also established that an employer of a retired member who returns to
work as a teacher does not pay contributions on behalf of the retired member
nor does the member accrue credited service, retirement benefits or long-term
disability benefits while working as a teacher.
This measure expands the
pilot return to work program initially established only for teachers to include
all members of the ASRS. With the passage of this measure, ASRS members will
have a choice between the temporary return to work program, which terminates
July 1, 2003, and the second return to work program (A.R.S. 38-766), which
allows retired members to return to work, provided that the member does not
work 20 or more weeks at 20 or more hours a week.
According to Joint
Legislative Budget Committee staff and ASRS, there is no fiscal impact
connected to this bill because a member must be retired at least one year and
therefore there is no increased likelihood of retirement at earlier ages, which
would have resulted in increased costs.
Provisions
1. Allows any member of the ASRS to return to work and still be eligible to receive retirement benefits if the member meets the following requirements:
·
Reached
normal retirement age;
·
Terminated
employment at least 12 months before returning to work; and
·
Acknowledges
in writing the terms and conditions of retired re-employment.
2. Prohibits employers of any ASRS member returning to work to pay member or employer contributions and long-term disability contributions, and prohibits any ASRS members who return to work to accrue credited service, retirement benefits or long-term disability benefits during the return to work period.
3. Provides for a general effective date.
House Action
RGO 1/16/01 DP 9-0-0-1
3rd Read 1/29/01 50-8-2-0
Prepared by Senate Staff
March 26, 2001