The proposed bill would amend current statutes regarding participation in supplemental employee deferral plans for employees of the Arizona State Retirement System (ASRS) and political subdivisions. Under current law, employees who are not eligible to participate in certain public retirement systems may elect to join a supplemental employee deferral plan if they meet ASRS eligibility requirements. The bill would change the language to specify that employees must be "participating" in a public retirement system rather than merely "not eligible" to participate, thereby clarifying the conditions under which they can opt into the supplemental plan.

Additionally, the bill introduces a new provision stating that employees of a political subdivision or entity who are participating in a public retirement system are explicitly not eligible to participate in the supplemental employee deferral plan overseen by ASRS. This change aims to ensure that those already covered by a public retirement system do not have access to the supplemental plans, thereby streamlining eligibility criteria and reducing potential overlaps in retirement benefits.

Statutes affected:
Introduced Version: 38-781
House Engrossed Version: 38-781