The proposed bill, HB2008, modifies the Arizona State Retirement System's (ASRS) Contribution Prepayment Program by introducing new requirements for prepayment agreements between ASRS and state agencies. Specifically, it mandates that any prepayment amounts must come from a legislative appropriation and that any use of prepaid amounts or accrued earnings to reduce pension contributions must also be authorized by legislation for a specific fiscal year. Additionally, the bill allows employers to choose an actual rate of return from short-term investments through ASRS, rather than being limited to the total pension fund rate of return.

Furthermore, the bill removes the previous requirement for employers to begin amortizing prepaid contributions once their net pension liability reaches zero. It also makes conforming changes to the existing law and clarifies that ASRS must provide an annual amortization schedule based on the employer's elected terms. Overall, these changes aim to enhance the flexibility and management of pension contributions while ensuring legislative oversight of the funding sources used for prepayments.

Statutes affected:
Introduced Version: 38-737
House Engrossed Version: 38-737
Chaptered Version: 38-737