Bill > HB2015

This bill modifies provisions related to the Elected Officials' Retirement Plan (EORP) and the Public Safety Personnel Retirement System (PSPRS), focusing on contributions, funded ratios, and administrative procedures. The bill makes several key changes, including allowing the board to potentially suspend contributions to the retirement plan if the stabilization reserve of an employer's account is fully funded and doing so would not conflict with fiduciary responsibilities. It introduces new provisions for transferring excess assets between employer accounts when an account has no remaining liabilities or beneficiaries, establishing a process that requires governing body resolutions and board verification. The bill also provides more detailed guidelines for calculating unfunded liability amortization payments, allowing some employers to elect longer amortization periods (up to 30 years) and specifying how liability transfers work when members change employers. For members hired on or after July 1, 2018, the bill maintains a split contribution model where employers cover 33.3% of normal costs and 50% of unfunded accrued liability, with members contributing the remaining percentages. Additionally, the bill clarifies that extra member contributions above certain percentages cannot be used to reduce employer contributions until the employer's funded ratio reaches 100%, helping to ensure the long-term financial stability of these public retirement systems.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/81661