Assigned to FICO FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2206
ASRS; contingent annuitants
Purpose
Specifies that an Arizona State Retirement System (ASRS) member who chooses an
optional premium benefit (OPB) may name one contingent annuitant to receive the OPB.
Background
ASRS offers optional forms of retirement benefits that continue to provide benefits beyond
the member's lifetime. If one of these options is elected, the member designates a beneficiary, or
contingent annuitant, who is entitled to receive the benefits following the member's death. A
contingent annuitant is the person named by a member to receive retirement income payable
following a member's death after retirement (A.R.S. §§ 38-711 and 38-760; ASRS).
An ASRS member who elects to receive a period certain and life annuity may also elect,
at the time of retirement, an optional form of health insurance premium benefit to supplement the
cost of retiree health insurance. The OPB is designed for members who have a spouse or dependent
who will want to continue to receive the health benefit following the member's death (A.R.S.
§ 38-783; ASRS).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Specifies that a member who chooses an OPB may only name one contingent annuitant to
receive the OPB after the member's death.
2. Replaces the term beneficiary with the term contingent annuitant for the purposes of the period
certain and life annuity.
3. Makes technical changes.
4. Becomes effective on the general effective date.
House Action
WM 1/17/24 DP 10-0-0-0
3
rd
Read 1/25/24 55-0-4-0-1
Prepared by Senate Research
February 22, 2024
MG/JC/cs