ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
ASRS; retirees; graded
multiplier increase
Purpose
Retroactive to May 8, 2001,
provides for a one-time permanent increase to current retired defined benefit
Arizona State Retirement System (ASRS) members.
Background
In 2001, the Legislature
established a graduated retirement formula multiplier for retirees (Laws 2001,
Chapter 380, section 6). Specifically,
this multiplier begins at 2.1 percent for members with less than 20 years of
service, and increases up to 2.3 percent for members with 30 or more years of
service. The graded multiplier was
enacted on a prospective basis for retirees who retired on or after August 8,
2001. Individuals who retired prior to
August 8, 2001, were not eligible for the graded multiplier. For these individuals, the normal retirement
multiplier was a flat 2.1 percent.
S.B. 1120, retroactive to
May 8, 2001, provides for a one-time permanent increase to current retired
defined benefit ASRS members.
According to Joint
Legislative Budget Committee staff, this measure will reduce the state general
fund by $2.6 million in FY 2003-2004.
Provisions
1. Provides for a one-time permanent increase to current retired defined benefit ASRS members, as follows:
a)
2.38
percent if that member has 20 or more years of service but less than 25 years.
b)
4.76
percent if that member has 25 or more years of service but less than 30 years.
c)
9.52
percent if that member has 30 or more years of service.
2. Contains a retroactivity clause of May 8, 2001.
Amendment Adopted by Committee of the Whole
· Changes the retroactive date from August 8, 2001 to May 8, 2001.
Senate Action
FIN 3/18/02 DP 4-2-2-0
3rd Read 3/28/02 17-11-2-0
Prepared by Senate Staff
March 28, 2002