AZ SB1052

Amends section 38-740 to require ASRS to withhold overpayment amounts plus income tax withholding from returns of contributions when a member has received an overpayment under section 38-765 or 38-797.08.

Amends section 38-760 to require ASRS to withhold overpayment amounts plus income tax withholding from partial lump sum payments when a member who elects a lump sum retirement benefit has received an overpayment under section 38-765 or 38-797.08.

Maintains existing provisions governing return of contributions based on years of credited service, with vesting schedules ranging from 25% to 100% of employer contributions.

Preserves optional retirement benefit forms including joint and survivor annuities, period certain and life annuities, and actuarially reduced lump sum payments up to 36 months of benefits.