The proposed bill would amend current statutes related to the Arizona State Retirement System (ASRS) by defining the term "unfunded liability" specifically for assessing costs associated with termination incentive programs. Under the new language, "unfunded liability" would be defined as either the increase in accrued liability due to a member's average monthly compensation exceeding a 30 percent threshold or the difference in accrued liability based on ASRS valuation assumptions for members retiring under such programs compared to those remaining active.

Additionally, the bill clarifies the definition of "termination incentive program" and makes technical changes to the existing language. The current statute's phrasing regarding the conditions and types of compensation that qualify as termination incentives would be refined to enhance clarity and precision. Overall, these updates aim to provide a clearer framework for evaluating the financial implications of termination incentive programs within the ASRS.

Statutes affected:
Introduced Version: 38-749
House Engrossed Version: 38-749
Chaptered Version: 38-749