AZ SB1051

Amends Arizona Revised Statutes section 38-748 regarding employer payment obligations when ineligible persons or compensation are contributed to the Arizona State Retirement System (ASRS).

Employers must pay ASRS any unfunded liability if contributions are made on behalf of ineligible persons or for ineligible compensation, and ASRS or a court determines benefits must be provided based on those contributions.

Unpaid unfunded liability accrues interest if not remitted within 90 days of ASRS notification of the amount due.

Credited service stops accruing as of the date ASRS or a court determines benefits must be provided due to the ineligible contributions.

If the person's ASRS account balance exceeds the present value of benefits owed, ASRS retains the entire account without refunding or crediting any excess amount.