Bill > HB2034

This bill amends Arizona Revised Statutes to clarify and expand the Arizona State Retirement System's (ASRS) authority to establish and manage supplemental employee deferral plans. The bill allows ASRS to create, administer, and operate these plans for public employees, which are tax-deferred retirement savings options that do not replace existing defined benefit retirement plans. Key changes include expanding eligibility for participation, particularly for employees not currently in certain public retirement systems, and allowing political subdivisions to participate through agreements with ASRS. The bill specifies that employee contributions are immediately vested, while employer contributions may vest according to a schedule set by the employer or a default ASRS schedule. The legislation also provides immunity for the state, ASRS, and its employees from civil liability related to these plans. The supplemental employee deferral plans are defined as tax-deferred plans under specific sections of the Internal Revenue Code, including 403(b) and 457(b) plans, and are designed to give public employees additional opportunities to save for retirement beyond their primary retirement benefits.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/81691