Overview: HB 2050 decouples the Arizona State Retirement System's (ASRS) eligibility requirements from the state's Section 218 agreement with the Social Security Administration.
League Position:SUPPORT - The League supports the bill because it will give the state and its political subdivisions greater control over ASRS as well as provide cities and towns the ability to have greater certainty regarding the eligibility of their employees.
Summary: HB 2050 effectively defers ASRS eligibility to statute rather than the provisions of the state's section 218 agreement. The bill also adds a number of eligibility requirements that were originally contained in the section 218 agreement. Because of this change, HB 2050 eliminates the special 401(a) plan that was created in last year's HB 2562, which served as a "holding space" for so-called nomad employees.
01/28/14: HB 2050 passed out of the Insurance and Retirement Committee on a 7-0 vote. The League signed in support of the bill, which was amended to clarify the process for newly eligible employees to purchase service. The bill now proceeds to the Rules Committee.
02/13/14: HB 2050 passed House Committee of the Whole with the Insurance and Retirement amendment.
02/18/14: HB 2050 passed the House Third Reading with 60 ayes and 0 nays. The bill now proceeds to the Senate.
02/27/14: HB 2050 passed out of the Senate Finance Committee on a 6-1 vote. The bill now proceeds to the Senate Rules Committee.
04/02/14: HB 2050 passed out of the Senate Committee of the Whole with the technical amendment offered by the Senate Rules Committee.
04/15/14: HB 2050 passed out of House Final Read on a vote of 60 ayes and 0 nays. The bill now proceeds to the Governor.