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BILL # HB 2812 |
TITLE: accumulated sick leave; payments |
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SPONSOR: Livingston |
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PREPARED BY: Ethan Scheider |
STATUS: House Engrossed |
The bill would increase the cap on Retiree Accumulated Sick Leave (RASL) benefit payments from $30,000 to $57,600.
Estimated Impact
We estimate that the bill would increase RASL payments to retirees by up to $7.7 million per year at full implementation. These increased benefits would be paid from the Retiree Accumulated Sick Leave Fund administered by the Arizona Department of Administration (ADOA).
Our estimate assumes the following:
1) According to ADOA, 279 retirees were subject to the current $30,000 cap on RASL benefit payments in FY 2025, generating total RASL benefits of $8.4 million.
2) We lack sufficient information to determine by how much these retirees exceed the current $30,000 cap. Using the same population of 279 retirees, we estimate that increasing the cap on RASL benefits to $57,600 could generate a maximum total benefit cost of $16.1 million. This amount represents the total amount of payments if all 279 retirees also hit the $57,600 cap.
3) RASL benefits are typically paid out in equal installments over a three-year period. By the third year, the cost of the increased benefit cap would be $7.7 million.
2/23/25