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 losing their benefits, specifying that benefits will be suspended if they return to work with the same employer unless certain conditions 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Furthermore, the bill removes outdated language regarding the suspension of benefits for retired members returning to work and clarifies the requirements for resuming active membership.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 created by early retirements and subsequent re-employment will be included in the funding calculations for the retirement system. Overall, these changes aim to modernize the retirement system and address potential financial impacts on the Arizona state retirement system.

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