SB1018 Summary

• Amends Arizona Revised Statutes section 38-711 to redefine "compensation" for Arizona State Retirement System (ASRS) members based on membership start date.

• For members whose membership began on or before December 31, 2019, compensation retains the prior definition excluding specific items like lump sum termination payments, court settlements, and merit awards.

• For members whose membership began on or after January 1, 2020, compensation is limited to only gross wages reported on federal W-2 forms, excluding accrued leave payouts, termination payments, employer-paid insurance contributions, reimbursements, and other non-wage benefits.

• Implements stricter compensation eligibility requirements for new ASRS members, significantly narrowing what qualifies as pensionable compensation by excluding most benefits and allowances previously counted.