HB 2726 Summary

• Modifies retirement benefit calculations for public employees hired on or after July 1, 2011 by increasing service requirements and adjusting accrual rates across Arizona State Retirement System (ASRS), elected officials' plan, public safety personnel retirement system, and corrections officer retirement plan.

• Implements phased increases in member contribution rates from 2011-2016, with rates gradually rising across different retirement systems and stabilizing at fifty percent of the computed employer contribution rate beginning fiscal year 2015-2016.

• Creates new provisions allowing retired members to return to work and receive benefits while employers pay an alternate contribution rate determined actuarially, with minimum rate of 2 percent but not exceeding two times the past service funding requirement rate.

• Changes average compensation calculation periods from 36 months to 60 months for ASRS members hired after July 1, 2011, and from 3 years to 5 years for elected officials and public safety personnel hired after January 1, 2012.

• Repeals several existing statutes related to benefit increase provisions and makes conforming amendments to multiple retirement system statutes to implement the new plan design changes retroactively to June 29-30, 2011.