AZ HB2049

Amends the definition of "compensation" in Arizona Revised Statutes §38-711 (Arizona State Retirement System) to include shift differential pay and military differential wage pay.

Expands the exclusions from "compensation" for ASRS members whose membership commenced on or after July 1, 2011 to exclude lump sum, installment, or periodic payments for accumulated leave, merit awards, overtime pay, incentive pay, bonus pay, longevity pay, performance pay, termination incentive pay, and various other forms of non-base payments.

Modifies the definition of "compensation" in §38-842 (Public Safety Personnel Retirement System) to clarify exclusions of overtime pay and longevity pay, while adding exclusions for bonus pay, performance pay, termination incentive pay, and other supplemental payments.

Revises the definition of "salary" in §38-881 (Corrections Officer Retirement Plan) to explicitly exclude lump sum, installment, or periodic payments for accumulated leave and adds exclusions for merit awards, overtime pay, bonus pay, longevity pay, performance pay, termination incentive pay, and other non-base compensation.

Clarifies that shift differential pay and military differential wage pay are included as base compensation across all three public retirement systems while establishing consistent exclusions for supplemental and termination-related payments.