Assigned to HEA & APPROP                                                                                     AS PASSED BY THE SENATE

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR H.B. 2553

 

telemedicine; schools; pilot project

(NOW:  school employees; retirement)

 

Purpose

 

Allows school district employees to participate in federal tax sheltered annuity plans and allows the use of public funds to purchase annuities or pay deferred compensation.

 

Background

 

Current statutes allow employees of school districts, accommodation school employees, employees of the community college districts, employees of the universities and all other certificated and noncertificated employees of the schools of Arizona to participate in the 403b federal tax sheltered annuity plan.  This is the supplemental defined contribution (DC) plan for employees in the field of education.  There is no allowance for employer matching of employee contributions since public funds cannot be used to purchase or contribute to this plan.

 

H.B. 2553 allows employees of education institutions in Arizona to participate in other, more flexible federal tax sheltered annuity plans and allows employers to use public funds to match employee contributions.

 

There is an unknown fiscal impact to state, county, district and other funds dependent on the programs initiated by individual school or community college districts.

 

Provisions

 

1.      Allows employees of school districts to participate in federal tax sheltered annuity plans instead of just the 403b plan.

 

2.      Eliminates the prohibition against using public funds to purchase any annuity or to pay any deferred compensation.

 

3.      Allows university employees, upon retirement, to withdraw the state’s portion of contributions along with the employee contribution to the retirement system.

 

4.      Provides for a general effective date.

 

Amendments Adopted by Appropriations Committee

 

Adopted the strike everything amendment.

 

Amendments Adopted by Committee of the Whole

 

            Allows university employees, upon retirement, to withdraw the state’s portion of contributions along with the employee contribution to the retirement system.

           

House Action                                                               Senate Action

 

ED                   2/19/01            DP       8-0-1-1                        HEA                4/3/01       DP            7-0-1-0

APPROP         2/27/01            DP       12-0-0-4          APPROP         4/10/01     DPA/SE   12-0-0-0

3rd Read           3/12/01            DP       48-5-7-0          3rd Read           4/27/01                      25-4-1-0

 

 

Prepared by Senate Staff

April 30, 2001