May 15, 2018
May 15, 2018
FOR IMMEDIATE RELEASE
Contact: Christian Palmer
Phone: 602-296-3736
EORP contribution rate increase signed into law
Actuarially determined rate of 61.5 percent starts in July
Employer contribution rates for the Elected Officials’ Retirement Plan will rise substantially due to legislation signed this afternoon by Governor Doug Ducey.
Now law, Senate Bill 1478, effectively returns the calculation of the employer contribution rate to an annual, actuarially determined basis. Effective July 1, 2018, that new rate will be 61.5 percent and is to be applied to all elected official payrolls, regardless of what retirement system or plan they may be in. This replaces the former static employer contribution rate of 23.5 percent that actuaries warned was insufficient to sustain the Elected Officials’ Retirement Plan.
The elected officials’ pension plan, which also covers members of the judiciary, was closed to new members on January 1, 2014. Those hired since then become members of the Elected Officials Defined Contribution Retirement Plan or the Arizona State Retirement System.
