AZ SB1054

Amends section 38-751, Arizona Revised Statutes, to establish a separate fund for employers that stop participating in the Arizona State Retirement System (ASRS).

Defines nonparticipating employers to include those that change from public to private entities, dissolve, or are no longer enrolling new employees in ASRS through legislative action.

Requires ASRS to allocate actuarial accrued liability and designated assets to the nonparticipating employer's separate fund based on plan and long-term disability (LTD) program funded percentages as of the nonparticipation date.

Mandates that nonparticipating employers and their enrolled employees continue making contributions to their separate fund, calculated by the employer's contribution rate and amortization of past service funding requirements over a board-determined period.

Applies only to employers that became nonparticipating on or after January 1, 2013, and prohibits such employers from rejoining ASRS after their nonparticipation date.