AZ HB2198

Amends the Elected Officials' Retirement Plan (EORP) to change the average yearly salary calculation from three consecutive years to five consecutive years within the last ten years of credited service.

Creates a two-tier retirement eligibility structure: members who became elected officials before the amendment keep existing requirements (age 65 with 5 years service, age 62 with 10 years service, or 20 years service), while new members lose the 20-year service option and must meet age requirements.

Increases member contribution rates from 7% of gross salary through June 30, 2011 to a phased schedule reaching 11% by fiscal year 2014-2015, with increases in excess of 7% not reducing employer contributions during the phase-in period.

Modifies the benefit increase formula by replacing a 9% investment return threshold with a tiered "excess investment earnings amount" based on the fund's funding ratio (70%, 70-80%, or 80%+ of actuarial liability).

Makes amendments to sections 38-801, 38-805, 38-808, 38-810, and 38-818 of Arizona Revised Statutes, with sections 38-810 and 38-818 applying retroactively from June 29, 2011.