House of Representatives

SB 1120

ARSR; retirees; graded multiplier increase.

Sponsors: Senators Hamilton, Gerard

 

DPA

Committee on Retirement and Government Operations

X

Committee on Appropriations

 

Caucus and COW

 

Third Read

 

 

As Passed the House

 

SB 1120 grants a graded retirement benefit increase to Arizona State Retirement System (ASRS) retirees or their beneficiaries receiving a benefit on August 8, 2001 based on years of credited service.  

 

Current Status

SB 1120 was amended in the Retirement and Government Operations Committee to appropriate $255,428 from the ASRS administrative fund to ASRS in fiscal year 2002-2003 for the administrative implementation of this act and to grant the graded multiplier to retirees receiving retirement benefits as of May 8, 2001, rather than August 8, 2001.

 

History

Normal retirement for ASRS members is achieved by any of the following:

·          Age 65

·          Age 62 with 10 years of credited service

·          Any combination of age and credited service totaling 80 points.

 

Laws 2000, Chapter 380, section 6, changed the formula for determining future retirement benefits for ASRS active members.  The normal retirement benefit formula is calculated as follows:

 

Less than 20 years of service

2.1%   x   years of credited service  x  average monthly compensation

20 to 24.99   years of service

2.15% x   years of credited service  x  average monthly compensation

25 to 29.99   years of service

2.20% x   years of credited service  x  average monthly compensation

30 or  more  years of service

2.30% x   years of credited service  x  average monthly compensation

 

Provisions

·          Provides a graded retirement benefit increase to ASRS retirees or their beneficiaries receiving a benefit on August 8, 2001 based on years of credited service equivalent to Laws 2000, Chapter 380, section 6.

 

·          Applies retroactively to May 8, 2001.

 

 

Amendments

SB 1120 was amended in the Retirement and Government Operations Committee as follows:

§         Appropriates $255,428 from the ASRS administrative fund to ASRS in fiscal year 2002-2003 for the administrative implementation of this act.

 

§         Grants the graded multiplier to retirees receiving retirement benefits as of May 8, 2001, rather than August 8, 2001.

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§         45th Legislature                 

§         Second Regular Session      2          April 11, 2002

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