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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
ASRS; long-term disability
Purpose
Allows an Arizona State Retirement System (ASRS) member to continue receiving long term disability (LTD) benefits after 24 months of being unable to perform work duties while under the direct care of a physician and also receiving LTD benefits, regardless of whether the 24 months occur within a five-year period.
Background
Active ASRS members making contributions to ASRS also participate in the ASRS LTD Program, funded by a separate contribution from members and employers to ASRS. The LTD plan provides for a monthly benefit designed to partially replace income lost if a member is unable to work due to an illness or injury (ASRS).
Monthly LTD benefits are not payable until a member has had a disability for a period of six consecutive months. A member is determined to have a disability based on objective medical evidence that establishes facts and conditions as perceived without distortion by personal feelings, prejudices or interpretations and includes quantitative tests, x-rays, lab findings, data, records and physician reports. After receiving LTD benefits for 24 months within a five-year period, an ASRS member is considered to have a disability if the member is unable to perform any work for compensation or gain for which the person is reasonably qualified by education, training or experience. Monthly LTD benefits cease to be payable to an ASRS member at the earlier of the date the member ceases to have a disability or the date the member ceases to be under the direct care of a physician. A person may receive LTD benefits until the latter of the person's normal retirement date or 60 months, with certain exceptions (A.R.S. § 38-797.07).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Removes the five-year limitation within which an ASRS member must have been receiving LTD benefits for 24 months in order to continue to be eligible for LTD benefits.
2. Becomes effective on the general effective date.
House Action
WM 2/4/26 DP 8-1-0-0
3rd Read 2/23/26 54-3-3
Prepared by Senate Research
February 26, 2026
MG/ci