AZ SB1321

Establishes the Arizona State Defined Contribution Retirement System as a new retirement program for all state and political subdivision employees hired on or after January 1, 2013.

Employees hired after January 1, 2013 are ineligible for the existing defined benefit ASRS program and must participate in the defined contribution system instead.

Members contribute 0-15% of gross compensation (picked up by employers), and employers match 100% of member contributions up to a maximum of 5% of gross compensation.

Vesting schedule provides: after 6 years, members receive contributions plus 1/3 of employer contributions; after 9 years, 2/3 of employer contributions; after 12 years, 100% of all contributions plus earnings.

Members may voluntarily transfer from the existing ASRS system on a prospective basis, either freezing benefits earned to date or withdrawing contributions to roll into the defined contribution system.