HB2008 proposes amendments to the Arizona State Retirement System's (ASRS) Contribution Prepayment Program. The bill introduces new requirements for prepayment agreements between ASRS and the state or any state agency, stipulating that any prepayment amounts must come from a specific appropriation passed by the Legislature and signed by the Governor. Additionally, the use of prepayment amounts or accrued earnings to reduce employer pension contributions must be authorized for a specific fiscal year through similar legislative action.

The bill also modifies the options for the earnings accrual rate, allowing employers to elect an actual rate of return of a short-term investment through ASRS, as agreed upon by ASRS. It removes the requirement for employers with a prepayment agreement to begin amortizing prepaid contributions when their net pension liability is zero or less. Conforming changes are made to the numbering of subsequent provisions in the statute.

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