HB 2745 Summary

• Amends Arizona Revised Statutes sections relating to the Arizona State Retirement System (ASRS) to reorganize investment management responsibilities and update retirement benefit provisions.

• Repeals section 38-719 and delays repeal of section 38-761 until June 30, 2013, while revising investment manager qualifications and board oversight procedures for ASRS assets.

• Modifies member benefit provisions including changing the credited service requirement from ten to five years for purchasing public service credit, military service credit, and leave of absence credit under sections 38-743, 38-744, and 38-745.

• Updates long-term disability (LTD) program benefits to include a 100 percent income replacement cap combining LTD benefits with other income sources and requires objective medical evidence for disability determinations.

• Appropriates $47,000 from the ASRS administration account for fiscal year 2012-2013 to implement the act.