Assigned to FIN FOR COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session FACT SHEET FOR H.B. 2036 ASRS; temporary personnel Purpose Allows an active Arizona State Retirement System (ASRS) member who is appointed to temporary personnel service by a federal agency to receive credited service in ASRS for up to 60 months of temporary personnel service. Requires ASRS employers to make member and employer contributions as outlined. Background An active member of ASRS who is called to active military service may receive credited service for up to 60 months of active military service. The member's employer must make employer and member contributions for the member for the period beginning on the date the member began active military service and ending on the latter of: 1) the date the member returns, or should have returned, to employment; 2) the date the member is released from service related hospitalization or two years after initiation of service related hospitalization; 3) one year after the date of disability; or 4) the date the member dies as a result of or during active military service. Contributions must be made based on the compensation that a member would have received but for the period that the member was ordered into active military service. Employer contributions must be made in a lump sum and without penalty when the members returns to employment, when it is determined that the member is unable to return to employment because of a disability as a result of or that occurred during military service or on receipt of the member's death certificate (A.R.S. § 38-745). The federal Uniformed Services Employment and Reemployments Rights Act (USERRA) provides for the employment and reemployment rights of U.S. Uniformed Services members. Under USERRA, U.S. Uniformed Service members' reemployment rights are protected for up to five years, or 60 months, of cumulative service with a single employer, with certain exceptions to the five-year limitation. In 2021, the U.S. Congress enacted the Civilian Reservist Emergency Workforce Act (CREW Act) to protect the employment rights of Federal Emergency Management Agency (FEMA) Reservists who are appointed to or training for responding to presidentially declared major disasters and emergencies. The CREW Act brings FEMA Reservists under the same protections afforded to U.S. Uniformed Service members under USERRA (38 U.S.C. § 4312(c) and P.L. 117-178, 117 th Congress, 2022). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Allows an active ASRS member who is appointed as temporary personnel by a federal agency to receive credited service in ASRS for up to 60 months of temporary personnel service. FACT SHEET H.B. 2036 Page 2 2. Requires an active ASRS member's employer to make employer and member contributions in the same manner and for the same duration as contributions for active military service. 3. Requires an active ASRS member to be credited with service for retirement purposes for the time period of temporary personnel service up to 60 months. 4. Adds the CREW Act to the exceptions from the 60-month service cap. 5. Makes conforming changes. 6. Becomes effective on the general effective date. House Action WM 2/5/25 DP 8-0-0-1 3 rd Read 2/13/25 49-3-8 Prepared by Senate Research February 26, 2025 MG/KP/ci