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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
ASRS; eligibility waiver
Purpose
Allows a person to waive participation in the Arizona State Retirement System (ASRS) if the person becomes eligible for participation after turning 65 years old.
Background
A person may waive participation in ASRS if the person: 1) becomes employed by an ASRS employer after the person has attained at least 65 years old; 2) is not an active, inactive or retired ASRS member or receiving long-term disability benefits; and 3) does not have any credited service or prior service in ASRS. The employee must make the election not to participate in writing and file the election with ASRS within 30 days after employment. The election not to participate is irrevocable for the remainder of the person's employment for which the person made the election and constitutes a waiver of all benefits provided by ASRS (A.R.S. § 38-727).
Most state agencies have a six-month waiting period from when an employee is first hired to when the employee starts contributing and becomes an ASRS member (A.R.S. § 38-671).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a person to waive participation in ASRS if the person becomes eligible for participation after the person turns 65 years old, rather than becomes employed by an ASRS employer after the person turns 65 years old.
2. Requires the written ASRS participation waiver to be filed with ASRS within 30 days after the employee becomes eligible to participate in ASRS.
3. Makes technical changes.
4. Becomes effective on the general effective date.
House Action
WM 2/4/26 DP 8-1-0-0
3rd Read 2/23/26 55-2-3
Prepared by Senate Research
February 25, 2026
MG/ci