ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

House: WM DP 6-4-0-0 | APPROP DPA 12-0-3-0

HB 2020: ASRS; contribution prepayment; appropriation

Sponsor: Representative Livingston, LD 28

Caucus & COW

Overview

Prepays $534,000,000 from the state General Fund (GF) to the Arizona State Retirement System (ASRS).

History

ASRS provides retirement benefits to employees of most public employers in Arizona, including the state and participating political subdivisions, including school districts, municipalities and counties (A.R.S. § 38-711).

Laws 2022, Chapter 324 authorized ASRS employers to prepay required 401(a) pension contributions, subject to a written agreement with ASRS. The employer may only contribute an amount up to that employer's net pension liability and prepaid contributions may only be used for future pension obligations. The prepaid contributions accrue earnings at ASRS's total pension fund rate of return (A.R.S. § 38-737).

Provisions

1. Appropriates $534,000,000 from the GF to ASRS to prepay the state employer's pension contributions. (Sec. 1)

2. Exempts the appropriation from lapsing. (Sec. 1)

Amendments

Committee on Appropriations

1. Reduces the appropriated amount from $534,000,000 to $45,000,000.

2. Specifies that the appropriation is a FY 2023 supplemental appropriation.

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6. HB 2020

7. Initials AF Page 0 Caucus & COW

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