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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
ASRS; supplemental employee deferral plan
Purpose
Specifies that an employee of an Arizona State Retirement System (ASRS) employer, or of a political subdivision or political subdivision entity, who is participating in the Public Safety Personnel Retirement System (PSPRS) or a PSPRS-administered retirement plan is not eligible to participate in a supplemental employee deferral plan.
Background
ASRS may
establish one or more supplemental savings plans for employers to provide
public employees an opportunity to save additional tax-deferred monies for
retirement. A political subdivision or political subdivision entity that is not
participating in ASRS may elect to allow its employees to participate in a
supplement employee deferral plan overseen by ASRS by entering into an
agreement with ASRS. If an employer elects to participate in a supplemental
savings plan, an employee of the employer may participate if the employee meets
ASRS-prescribed eligibility requirements. Beginning July 1, 2022, an employee
who is not eligible to participate in PSPRS, or any PSPRS-administered
retirement plan, may elect to participate in a supplemental employee deferral
plan. PSPRS administers the PSPRS Defined
Contribution Plan in addition to separate plans for Arizona's elected
officials, known as the Elected Officials' Retirement Plan and the Elected Officials' Defined Contribution Plan,
and for corrections officers, known as the Corrections Officer Retirement Plan
(A.R.S. §§ 38-781; 38-802; 38-831; 38-841; 38-865; and
38-882).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Specifies that an employee of a political subdivision or political subdivision entity is not eligible to participate in a supplemental employee deferral plan overseen by ASRS, if the employee is participating in PSPRS or a PSPRS-administered retirement plan.
2. Specifies that an employee of an ASRS employer who is not participating in, rather than is not eligible to participate in, PSPRS, or a PSPRS-administered retirement plan, may elect to participate in a supplemental employee deferral plan.
3. Makes technical changes.
4. Becomes effective on the general effective date.
House Action
WM 2/5/25 DP 7-1-0-1
3rd Read 2/17/25 58-1-1
Prepared by Senate Research
February 27, 2025
MG/KP/ci