This bill proposes several updates to the Arizona state retirement system statutes. It introduces new provisions that allow members who reach a normal retirement date or a specified age to retire without terminating employment until December 31, 2028. Additionally, it establishes that any unfunded liability resulting from early retirements will be factored into the alternate contribution rate. The bill also modifies the conditions under which retired members can return to work without affecting their retirement benefits, specifying that benefits will be suspended unless certain criteria are met, such as returning to a different employer or having a break in service.

Furthermore, the bill removes outdated language regarding the suspension of benefits for retired members returning to work and clarifies the process for resuming active membership. It emphasizes that retired members who do not resume active membership will not accrue additional benefits during their period of re-employment. The bill also mandates that any unfunded liabilities from early retirements and subsequent re-employment will be included in the funding calculations for the retirement system, ensuring that the financial implications of these changes are accounted for in future contributions.

Statutes affected:
Introduced Version: 38-764, 38-766, 38-766.01, 38-766.02, 38-782, 38-783, 38-767, 38-775, 38-711, 38-760, 38-804, 15-1628, 38-743, 38-744, 38-769, 38-736, 38-737, 38-738, 15-536, 15-538, 15-538.01, 15-539, 15-543, 38-797.05