ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	House: GE DP 13-0-0-0

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HB 2008: ASRS; employer; member; contributions

Sponsor:  Representative Kavanagh, LD 23

Caucus & COW

Overview

Specifies what must happen if more than the correct amount for the employer or member contributions is paid into the Arizona State Retirement System (ASRS).

History

One of the primary purposes of ASRS includes contributing toward providing a total compensation package that is generally equivalent to employment that is comparable in other public and private organizations in Arizona.  Additionally, the intent of ASRS is to provide a retirement system that encourages employees to remain in service for periods of time that will provide employers with the benefit of training and experience gained by employees (A.R.S. § 38-712).

Current statute details what must occur if more than the correct amount of employer or member contributions is paid into ASRS by an employer.  ASRS is required to return contributions if the employer requests within one year of the overpayment due to a mistake of fact or a mistake of law.  These contributions must be returned through an employer credit or by check on request of the employer.

If less than the correct amount of employer or member contributions is paid into ASRS by an employer, certain conditions apply including that the member and employer must pay an amount that is equal to the amount that would have been paid in contributions for the period in question.  The employer must also pay accumulated interest that would have accrued on the employer and member contributions that were due (A.R.S. § 38-738).

Provisions

1. Stipulates that if more than the correct amount of employer or member contributions is paid into ASRS by an employer through a mistake of fact or law, ASRS must provide the employer with an employer credit against future contributions if requested. (Sec. 1)

2. Prohibits ASRS from paying an employer earnings attributable to the excess contributions. (Sec. 1)

3. Requires ASRS to reduce the amount returned to an employer by the amount of losses attributable to the excess contributions. (Sec. 1)

4. Directs an employer to return any member portion of the returned contributions to the member upon receipt of an employer credit or check. (Sec. 1)

5. States that the correct amount of member contributions may not be paid to ASRS after the death of the member if less than the correct amount of employer or member contributions is paid into ASRS by an employer. (Sec. 1)

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9.                   HB 2008

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