Arizona State Retirement System
description
Transcript of Arizona State Retirement System
Arizona State Retirement System
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Arizona Association of School Business Officials
September Bi-Monthly Meeting
September 9, 2009
Discussion Topics
• Fund Status
• Enacted Legislation
• HI Open Enrollment
• Retirees Returning to Work
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ASRS Trust Fund Activity
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ASRS Defined Benefit Plan 1996 – 2009
Fiscal Year End June 30
Market Return
Market Value of Assets
(in millions)
Excess Actuarial
Return
Actuarial Funded Status
Contribution Rate* EE & ER Contri-butions
(in millions)
Benefit Payments (in millions)
# of New Retirees
by Year**
Avg. Monthly
Benefit*** Actual
Normal Cost
1996 13.2% $13,917.6 5.2% 113.2% 3.36% 5.44% $299.7 $536.5 3,845 $ 920
1997 14.8% $16,397.9 6.8% 114.4% 3.20% 5.20% $309.4 $580.9 3,578 $ 945
1998 16.2% $19,390.0 8.2% 118.6% 3.05% 5.21% $321.3 $628.6 3,353 $ 982
1999 14.1% $21,836.4 6.1% 116.4% 2.85% 5.24% $348.0 $678.9 4,380 $1,024
2000 8.8% $23,187.6 0.8% 120.4% 2.17% 5.24% $283.8 $788.6 4,822 $1,125
2001 (6.7%) $21,872.9 (14.7%) 112.8% 2.17% 5.48% $367.2 $920.4 4,224 $1,211
2002 (11.3%) $18,594.9 (19.3%) 104.6% 2.00% 5.36% $321.8 $1,029.1 3,954 $1,371
2003 1.8% $18,116.8 (6.2%) 96.8% 2.00% 5.88% $375.5 $1,162.8 5,955 $1,401
2004 17.3% $20,758.6 9.3% 91.2% 5.20% 5.95% $866.0 $1,326.4 6,430 $1,487
2005 8.4% $21,901.0 0.4% 85.3% 5.20% 6.52% $946.7 $1,510.7 7,005 $1,508
2006 9.8% $23,641.1 1.8% 83.7% 6.90% 6.51% $1,265.2 $1,652.6 7,143 $1,566
2007 17.7% $27,639.0 9.7% 82.8% 8.60% 6.58% $1,631.2 $1,784.0 7,393 $1,584
2008 (7.5%) $25,296.1 (15.5%) 82.2% 9.10% 6.71% $1,805.7 $1,931.1 7,784 $1,596
2009 (est) (19.1%) $20,372.5 (27.1%) 79.3% 8.95% 6.46%
* The actual contribution rate is what each active member contributes during a fiscal year. The normal cost rate is what the contribution rate would be
if there was no surplus or deficit to amortize.
** Over the 12-year period, the numbers of new retirees by year have increased 102%
ASRS Trust Fund Assets
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House Bill 2118Signed by Governor on July 10, 2009
DB Plan Design• Removes 80% cap on retirement benefits.
Dual Employment• Requires 20/20 criteria for membership on second
employer.
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House Bill 2118 (continued)
Return to Work• Permits the election of a different retirement
option if retiree suspends benefit and works for at least 60 consecutive months.
• Eliminates the requirement that a returning teacher be certified.
Service Purchase• Requires, beginning July 1, 2010, a member to have
5 years of service credit before initiating any service purchase.
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House Bill 2118 (continued)
Employee Termination Incentive Programs• Limits exceptions to increases in compensation to
promotion only (eliminates reclassifications and merit increases.
• Eliminates the requirement the termination agreement be in writing.
• Requires an employer to pay any unfunded liability for persons who would not have qualified for ASRS membership but for whom contributions were made.
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Senate Bill 1196Signed by Governor on July 10, 2009
A Strike Everything Education Omnibus
Salary Deferral Plan•Authorizes the ASRS to establish a supplemental employee salary deferral plan [403(b) or 457] for public employees, other than State employees, to save additional tax deferred money for retirement.
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• October 19 – November 13, 2009• No change in medical or dental plan carriers• Passive enrollment•Plan improvements, but with premium increases• January 1, 2010 – effective date
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HI Open Enrollment
Return to Work
A.R.S. § 38-766• Requires a retired member to suspend
benefit if 20/20 criteria for membership is met.
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Return to Work(continued)
A.R.S. § 38-766.01• Allows a retired member to return to work
and receive a benefit if:– member has attained NRA.– member terminated employment at
least 12 months before returning to work.
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Return to Work(continued)
There are some exceptions to this general rule:1. Retiring without terminating employment.2. Returning to work with reduced hours.3. Returning to work after 12 month.4. Returning to work in a position that requires
participation in another state retirement plan.5. Returning to work as a leased employee or
independent contractor.6. Returning to work in a position that is not included
under the employer’s Social Security coverage agreement. 12
Questions?
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