AZ SB1084

Amends the definition of "monthly compensation" for Arizona State Retirement System (ASRS) long-term disability (LTD) program benefits to use a median calculation based on six pay periods immediately before disability, disregarding the highest and lowest two periods, rather than one-twelfth of annual compensation.

For members employed fewer than six pay periods, monthly compensation is determined by deriving the median of the actual pay periods worked in the fiscal year the member becomes disabled.

Removes the phrase "at the time disability commences" from the section limiting monthly LTD benefits to two-thirds of monthly compensation, aligning the benefit calculation with the revised monthly compensation definition.

Applies retroactively to members whose disability commenced before the bill's effective date, modernizing how disability benefits are calculated under ASRS.