The proposed bill updates the Arizona Revised Statutes regarding the Elected Officials Retirement Plan (EORP) and the Corrections Officer Retirement Plan (CORP) by modifying contribution requirements and enhancing financial management of the plans. It introduces new provisions that allow the board of trustees to account for excess valuation assets up to 100% of the present value of all future benefits, replacing the previous limit of 50%. Additionally, it mandates that member contributions exceeding 7% for EORP and 8.41% or 7.96% for CORP cannot be used to reduce employer contributions until the employer's funded ratio is at or above 100%. The bill also removes certain outdated language regarding fiscal year limitations and establishes stricter conditions for suspending contributions. Moreover, the bill stipulates that an employer's contributions, in combination with member contributions, must not be less than the actuarially determined normal cost for the fiscal year and outlines conditions for suspending contributions, including the requirement that the stabilization reserve be fully funded. It also mandates a public resolution and written request for employers wishing to transfer excess assets and clarifies the role of the joint legislative budget committee in confirming eligibility for asset transfers. Overall, these updates aim to improve the financial stability and management of the retirement plans while ensuring compliance with fiduciary responsibilities.

Statutes affected:
Introduced Version: 38-810, 38-891, 12-119.01, 12-120.31, 12-284.03, 22-281, 41-178, 38-727, 38-797.05, 38-833, 38-737, 38-803.01, 2011-2012, 2012-2013, 2013-2014, 2042-2043, 35-190