Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR H.B. 2034
ASRS; supplemental employee deferral plan
Purpose
Specifies that an employee of an Arizona State Retirement System (ASRS) employer, or
of a political subdivision or political subdivision entity, who is participating in the Public Safety
Personnel Retirement System (PSPRS) or a PSPRS-administered retirement plan is not eligible to
participate in a supplemental employee deferral plan.
Background
ASRS may establish one or more supplemental savings plans for employers to provide
public employees an opportunity to save additional tax-deferred monies for retirement. A political
subdivision or political subdivision entity that is not participating in ASRS may elect to allow its
employees to participate in a supplement employee deferral plan overseen by ASRS by entering
into an agreement with ASRS. If an employer elects to participate in a supplemental savings plan,
an employee of the employer may participate if the employee meets ASRS-prescribed eligibility
requirements. Beginning July 1, 2022, an employee who is not eligible to participate in PSPRS, or
any PSPRS-administered retirement plan, may elect to participate in a supplemental employee
deferral plan. PSPRS administers the PSPRS Defined Contribution Plan in addition to separate
plans for Arizona's elected officials, known as the Elected Officials' Retirement Plan and the
Elected Officials' Defined Contribution Plan, and for corrections officers, known as the
Corrections Officer Retirement Plan (A.R.S. ยงยง 38-781; 38-802; 38-831; 38-841; 38-865; and
38-882).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Specifies that an employee of a political subdivision or political subdivision entity is not
eligible to participate in a supplemental employee deferral plan overseen by ASRS, if the
employee is participating in PSPRS or a PSPRS-administered retirement plan.
2. Specifies that an employee of an ASRS employer who is not participating in, rather than is not
eligible to participate in, PSPRS, or a PSPRS-administered retirement plan, may elect to
participate in a supplemental employee deferral plan.
3. Makes technical changes.
4. Becomes effective on the general effective date. FACT SHEET
H.B. 2034
Page 2
House Action
WM 2/5/25 DP 7-1-0-1
3
rd
Read 2/17/25 58-1-1
Prepared by Senate Research
February 27, 2025
MG/KP/ci