ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: APPROP DP 8-5-0-0

HB 2870: public retirement systems; 2022-2023

Sponsor: Representative Cobb (with permission of Committee on Rules), LD 5

Caucus & COW

Overview

Contains provisions relating to public retirement systems needed to implement the FY 2023 budget.

History

One of the primary purposes of the Arizona State Retirement System (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 (A.R.S. § 38-712).

The Public Safety Personnel Retirement System (PSPRS) was established in order to provide a consistent, uniform and equitable statewide retirement program for the public safety personnel in Arizona (www.psprs.com).

Provisions

1. Requires a retiree, by January 3, 2023, who is eligible for group health and accident coverage and who elects to obtain insurance coverage to maintain continuous coverage in a health, dental or vision plan in order to retain eligibility for such insurance coverage. (Sec. 1)

2. Directs a retiree, by January 3, 2023, within 31 days after becoming eligible for group health and accident coverage to make an election for insurance coverage from the health, dental or vision insurance plans made available by the Arizona Department of Administration (ADOA) or the person forfeits any further eligibility. (Sec. 1)

3. Specifies that if the retiree does not maintain continuous enrollment in a health, dental or vision insurance plan, the person and the person's eligible dependents are not eligible to enroll at a later time. (Sec. 1)

4. Directs the ASRS board and the PSPRS board of trustees to:

a) Develop a policy regarding routine stress testing of ASRS and prescribes the definition and what must be included in stress testing;

b) Include a stress test that meets the prescribed requirements in the annual actuarial valuation of ASRS and the annual system level actuarial valuations of the PSPRS retirement systems and outlines the scenarios that must be included; and

c) Submit an annual investment report by December 1 of each year to the Governor, the President of the Senate, the Speaker of the House of Representatives and the Secretary of State and prescribes what must be included. (Sec. 2, 3)

5. Stipulates, as session law, that a person who retires before January 3, 2023, to remain eligible to enroll in group health and accident coverage, the person must elect health, dental or vision insurance coverage in the next open enrollment period:

a) Following the general effective date of this legislation; or

b) Within 31 days after becoming eligible for group health and accident coverage, whichever is later. (Sec. 4)

6. Makes technical changes. (Sec. 1-3)

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10. HB 2870

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