ELECTED OFFICIALS’ RETIREMENT PLAN
2005 PROPOSED LEGISLATION

Updated May 20, 2005

FINAL UPDATE

***47^th Legislature – 1^st Regular Session adjourned sine die on Friday, May 13^th at 1:25 am. Unless otherwise noted, enacted legislation will go into effect August 12, 2005.***

Bills enclosed in a border have been passed.
To review a bill in its entirety, please visit the State Legislature’s Website: www.azleg.state.az.us

H 2098 Tech Correction; Servicing Banks

This striker bill was amended to require state entities to make monthly or quarterly reports available to the public of those public monies and investments in the private sector that exceed $25,000.

Sponsor: Rep. Konopnicki

Current Action: 2/24 from House gov ref with amend #3541.

~~H 2411 Retirement; Elected Officials~~

Elected officials, judges and full-time court commissioners who are elected or appointed after December 31, 2005 would not be eligible to participate in EORP, but instead would be required to participate in the Arizona State Retirement System (ASRS). Elected officials, judges and full-time court commissioners who gained membership in EORP prior to that date would have the option of transferring membership from EORP to ASRS, or continuing in EORP. Beginning in 2006, the fund manager may require employers to contribute additional amounts needed to properly fund the plan.

Sponsor: Rep. Pearce

~~Current Action: 1/18 referred to House pub-ret, appro B;~~ 2/7 House pub-ret failed 0-8.

H 2457 Retirement; EORP; Surviving Spouse

Would increase a surviving spouse’s pension under ARS 38-807 from 75% to 80% of member’s pension.

Sponsor: Rep. Burns

Current Action: 1/18 referred to House pub-ret, appro B; 1/31 from House pub-ret, do pass.

H 2458 Retirement; EORP; Buybacks

Would remove the requirement for a member to make contributions to EORP once they become eligible for a “normal retirement.” Would also allow an active member to redeem prior service from employment with the United States Government, a state of the United States or a political subdivision of a state of the United States.

Sponsor: Rep. Burns

Current Action: 1/31 referred to House pub-ret, appro B; 2/15 from House pub-ret, do pass.

H 2473 Retirement; ASRS; Eligibility for AHCCCS

Would provide ASRS with the option of exploring the Arizona Health Care Cost Containment System (AHCCCS) business model and provider network by including a “retiree” as an “eligible person” in the AHCCCS definition statutes.

Sponsor: Rep. McClure

Current Action: 1/18 referred to House pub-ret, hel; 1/31 House pub-ret held; 2/8 from House pub-ret, do pass.

H 2621 Retiree Health Insurance; Rural Subsidy

The provision that is set to expire June 30, 2005, whereby retirees living in certain rural areas (defined as “nonservice areas”) receive a subsidy for health insurance premiums, would be extended two years to June 30, 2007 only for those retirees who are medicare eligible.

Sponsor: Rep. Konopnicki

Current Action: 2/9 referred to House pub-ret, gov ref, appro B.; 2/16 House gov ref amended, report awaited; 2/17 from House gov ref with amend #3353; 3/2 from House appro B with amend #3674; 3/8 from House appro B with corrected amend #3788 (replaces 3674); 3/9 from House rules okay; 3/10 House COW approved with amend #3788, amend 3353 was withdrawn; 3/21 passed House 45-7, ready for Senate; 3/23 referred to Senate fin, appro; 4/4 Senate fin, do pass; 4/6 Senate appro, do pass; 4/27 from Senate rules, okay; 4/28 Senate COW approved; 5/9 passed Senate 27-1, ready for governor; 5/20 signed by Governor, Chap. 297, Laws 2005.

H 2671 Retirement; State Retiree Health Insurance

The existing law on group health and accident coverage for retired public employees and officials would be replaced by a new requirement. Under the new law, beginning January 1, 2007, retirees who elect not to obtain health insurance through their former employer would be entitled to obtain health and accident insurance through the ADOA. The strike-everything amendment would establish a retiree health insurance committee to review and evaluate the recommendations of the Mercer Human Resource Consulting study on retiree health insurance.

Sponsor: Rep. Konopnicki

Current Action: 2/9 referred to House pub-ret, hel, appro P; 2/21 House pub-ret held; 3/1 from House pub-ret with amend #3650.

HCR 2042 Justices and Judges; Retirement Age

The 2006 general election ballot is to carry the question of amending the state constitution to raise the mandatory retirement age of justices and judges of courts of record from 70 to 75. See also SCR 1013.

Sponsor: Rep. McCune-Davis

Current Action: 1/31 referred to House jud.

S 1053 Elective Offices; Military Vacancies

If a state or local elected officer is ordered to active military duty projected to last at least 3 months but less than the term of office, the office may be vacated temporarily and a temporary replacement appointed.

Sponsor: Sen. Tibshraeny

Current Action: 1/13 referred to Senate gov; 1/24 from Senate gov do pass; 1/25 from Senate rules with a technical amendment; 1/27 Senate COW approved with the rules technical amendment; 1/31 passed Senate 28-0, ready for House; 2/16 referred to House gov ref, county-muni; 3/23 from House gov ref with amend #4147; 3/30 from House county-muni, do pass; 4/6 from House rules with a tech amend; 4/7 House COW approved with amend #4147 and the rules tech amend; 4/11 passed House 58-0, ready for Senate action on House amendments; 4/18 Senate concurred in House amendments and passed on final reading 29-0, ready for governor; 4/25 signed by Governor, Chap. 189, Laws 2005.

S 1359 Statewide Retiree Health Insurance Program

The Department of Administration would be authorized to establish group health and accident insurance for retired and disabled persons from all of the state’s four retirement plans. Premiums may be deducted from retirement benefits. The program would be implemented on January 1, 2007.

Sponsor: Sen. Huppenthal

Current Action: 2/1 referred to Senate fin.

S 1360 Retiree Health Insurance Committee

A Retiree Health Insurance Committee is formed to evaluate the options for retiree health insurance coverage proposed by the private entity retained by Legislative Council pursuant to Laws 2004, Ch. 325, § 8 (H 2542). A report is due by the end of the year.

Sponsor: Sen. Huppenthal

S 1366 Minimum Employer Contribution Rate

Beginning with fiscal year 2006-2007, the EORP employer contribution rate floor would be increased from 2% to 5%. Effective immediately, an active member may redeem prior service from employment with the United States Government, a state of the United States or a political subdivision of a state of the United States.

Sponsor: Sen. Martin

Current Action: 2/1 referred to Senate fin; 2/17 Senate fin amended; 2/21 from Senate fin with amend #3412; 2/22 from Senate rules okay; 2/24 Senate COW approved with amend #3412; 3/2 passed Senate 29-1, ready for House; 3/8 referred to House pub-ret, appro B; 3/15 from House pub-ret do pass; 3/30 from House appro B with amend #4232; 4/11 from House rules okay; 4/12 House COW approved with amend #4232 and floor amend #4431; 4/14 passed House 53-3, ready for Senate action on House amendments; 4/19 Senate concurred in House amendments and passed on final reading 17-1, ready for governor; 4/25 signed by Governor, Chap. 208, Laws 2005.

S 1378 PSPRS; Fund Manager; Membership

SB 1378 would amend the qualifications for certain positions on the Fund Manager board.

Sponsor: Sen. Martin

Current Action: 2/1 referred to Senate fin; 2/17 Senate fin held; 2/24 Senate fin do pass; 2/28 from Senate fin to Senate consent calendar; 3/1 from Senate rules okay; 3/8 passed Senate 27-0, ready for House; 3/22 referred to House pub-ret; 3/29 from House pub-ret with amend #4211; 4/7 House COW approved with amend #4211; 4/12 passed House 56-2; ready for Senate action on House amendments; 4/14 Senate refused to concur in House amendments and named Martin, Garcia and Harper to a free conference committee; 4/18 House named McClure, Burns and Burton-Cahill to the free conference committee; 5/3 House adopted conference report #4670; 5/4 Senate adopted conference report #4670 and passed on final reading 28-1; awaits House final vote; 5/10 passed House on final reading 48-4, ready for governor; 5/20 signed by Governor, Chap. 319, Laws 2005.

S 1521 Budget; State Budget Procedures

Budget bill dealing with various budgeting procedures, including the frequency of reports from the fund managers of PSPRS, CORP and EORP on employer and employee contribution rates is changed from even numbered years to every year.

Sponsor: Sen. Burns

Current Action: 5/5 from Senate rules okay; 5/6 Senate COW approved with floor amend #4751, a substitute for amend #4645. Passed Senate 29-0. Substituted in House for identical HB 2772 and passed 37-20, ready for governor; 5/20 signed by Governor, Chap. 331, Laws 2005.

SCR 1013 Justices & Judges Retirement Age

Sponsor: Sen. Brotherton

Current Action: 1/20 referred to Senate jud.

SCR 1023 Judicial Retirement Age

The 2006 general election ballot is to carry the question of amending the state constitution to repeal the requirement for justices and judges to retire at age 70, leaving the setting of any retirement age up to the Legislature.

Sponsor: Sen. Gray

Current Action: 1/25 referred to Senate jud.