SB 1033 Summary

• Allows the Arizona State Retirement System (ASRS) board to establish a self-insurance program for group health and accident coverage as an alternative to fully insured plans if determined to be less expensive and equally effective.

• Requires ASRS to maintain a separate account for any self-insurance program with funds used only for providing benefits and administration costs, with remaining monies returned to employers after liabilities are satisfied.

• Expands health insurance coverage eligibility to include retired members of the public safety personnel defined contribution retirement plan and elected officials' defined contribution retirement system.

• Clarifies that the separate account established for health insurance premium benefits can fund both the self-insurance program under Section 38-782 and premium payments under Section 38-783.

• Maintains existing premium payment amounts for retired members and members with disabilities ($150/month for non-Medicare ASRS members with 10+ years service; $100/month for Medicare-eligible members).