HB 2008
Initials VP Page 1 Transmitted
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
House: WM DP 10-0-0-0 | 3rd Read 57-3-0-0
Senate: FIN DP 6-0-1-0 | 3
rd
Read 30-0-0-0
HB 2008: ASRS; contribution prepayment
Sponsor: Representative Livingston, LD 28
Transmitted to the Governor
Overview
Allows employers to elect a short-term investment rate of return and eliminates the requirement
that employers elect an amortization schedule for their prepaid contributions within a specified
period of time when they have entered a contribution prepayment program with the Arizona State
Retirement System (ASRS).
History
Employers are required to pay contributions based on a percentage of compensation for eligible
employees. The required employer contributions are determined on an annual basis by an actuary
selected by the ASRS Board. The contributions made by an employer are allocated to the ASRS
Trust Fund are irrevocable and used as benefits for the ASRS or to pay expenses of the ASRS.
Additionally, employers may enter into a written agreement with ASRS and enter a contribution
prepayment program to prepay their 401(a) pension contributions. (A.R.S § 38-737)
Provisions
1. Allows employers to elect s short-term investment rate of return, if available and agreed to by
ASRS. (Sec. 1)
2. Removes the requirement that employers immediately elect an amortization schedule for their
prepaid contributions. (Sec. 1)
3. Provides a process for the State to make deposits towards ASRS prepayment contributions
and for the State to use prepaid amounts to reduce the State's pension contributions when an
appropriation or other legislation is passed by the Legislature and signed into law by the
Governor. (Sec. 1)
4. Makes conforming changes. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note