AZ HB2212

Amends Arizona Revised Statutes Section 38-749 to regulate employer termination incentive programs affecting the Arizona State Retirement System (ASRS).

Requires employers to pay ASRS the full actuarial unfunded liability created by termination incentive programs, with interest accruing at the board-approved actuarial equivalency rate if payment is not received within 90 days.

Mandates employers notify ASRS before implementing a termination incentive program that may affect ASRS funding.

Redefines "termination incentive program" to include compensation increases of 15% or more (reduced from 30%) given to members in years used to calculate average monthly compensation, excluding true promotions.

Expands definition of termination incentive program to include any value provided to members conditioned on termination, except standard accrued vacation, sick leave, or compensatory time payments unless enhanced beyond customary rates.