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 benefits based on a member's average monthly compensation exceeding a 30 percent threshold or the difference in accrued liability calculated under ASRS valuation assumptions for members retiring under such programs versus those remaining active.

Additionally, the bill would clarify the definition of "termination incentive program" and make technical changes to the existing language. The current definitions would be streamlined, and the bill would ensure that any payments made to employees for accrued leave are excluded unless they exceed customary payments. Overall, these updates aim to provide clearer guidelines for the implementation and financial implications of termination incentive programs within the ASRS framework.

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