ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

 


HB 2059: retirement systems; benefit computation; return-to-work

Sponsor: Representative Kavanagh, LD 23

Committee on Government & Elections

Overview

Modifies the definition of average monthly benefit compensation.

History

Relating to the Public Safety Personnel Retirement System, average monthly benefit compensation refers to the result of dividing total compensation paid to an employee during a considered period by the number of months compensation was received.

There are three tiers considered for average monthly benefit compensation: 1) before January 1, 2012; 2) on or after January 1, 2012, and before July 1, 2017; and 3) on or after July 1, 2017. Of these three tiers, the latter two state that in the computation of average monthly benefit compensation, a period of partially paid or nonpaid industrial leave must be considered based on the compensation the employee would have received if they were not on industrial leave (A.R.S. 38-842).

A retirement plan must begin making payments to a member in the calendar year in which the member attains 71.5 years of age (A.R.S. 38-808, 38-844, 38-890).

Provisions

1.    Stipulates that an elected official is subject to this Act if the elected official is also eligible for Arizona State Retirement System service credit for the elected official's service. (Sec. 1)

2.    Changes the age a member of the Elected Official's Retirement Plan, Public Safety Personnel Retirement System or Corrections Officer Retirement Plan can begin receiving payments of benefit from 71.5 years of age to 72 years of age. (Sec 2, 4, 6)

3.    Requires, for members before January 1, 2012, a period of partially paid or nonpaid industrial leave to be considered based on the compensation the employee would have received if they were not on industrial leave. (Sec. 3)

4.    Contains technical changes. (Sec. 2-6)

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note

 

 

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HB 2059

Initials SJ Page 0 Government & Elections

 

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