HB 2562

House Bill (HB) 2562: public retirement systems; ineligible employees

Sponsor: Representative Robson

Overview: HB 2562 places certain employees ineligible for Arizona State Retirement System (ASRS) and Public Safety Personnel Retirement System (PSPRS) into a defined contribution plan under ASRS strengthens the enrollment process for new hires.

League Position: SUPPORT– The League supports the bill because it will help prevent future employees from being improperly enrolled in a state retirement plan and it provides a "plan of last resort" for those employees that are ineligible for a pension system.

Summary: HB 2562 creates an improved and more formalized process for enrolling employees into ASRS or PSPRS. Additionally, the bill allows employers to enroll ineligible employees in the 401(a) plan operated by ASRS.


02/19/13: The bill passed the House Insurance and Retirement Committee on a 6-2 vote and now proceeds to the Rules Committee.

02/28/13: The bill passed out of House COW with an amendment to clarify that the changes in the bill do not impact the PSPRS eligibility for people eligible for the Correctional Officer Retirement Plan.

03/13/13: The bill was significantly amended in the Senate Finance Committee to prevent future employees seeking enrollment in the ASRS and the PSPRS from being improperly enrolled the state's pension plans. The amendment removes all other provisions relating to currently enrolled employees that may be ineligible for plan participation.

04/10/13: The bill was further amended in Senate COW to finalize the provisions relating to employee enrollment in the 401(a) and other technical changes. The League supports the bill and thanks the sponsor, Representative Bob Robson (R-Chandler) for his efforts on the legislation.

05/08/13: HB 2562 passed the Senate by a vote of 16-12. The bill now returns to the House for concurrence or refusal on Senate amendments.

05/22/13: HB 2562 was amended in a conference committee to make a technical change.

06/13/13: HB 2562 passed the Senate on a final read vote of 29-0 and the House on a final read vote of 59-0.