SB 1053 Summary

• Amends Arizona Revised Statutes Section 38-751 to reorganize and clarify provisions regarding nonparticipatory employer liability in the Arizona State Retirement System (ASRS).

• Establishes that ASRS shall create a separate fund for employers that cease participation due to changes in entity character, dissolution, or legislative action reducing employee enrollment, but excludes charter schools from this requirement.

• Requires ASRS to allocate an actuarial accrued liability and designated asset amount to each nonparticipating employer's separate fund as of the nonparticipation date, calculated using the same actuarial assumptions and methods as the most recent valuation.

• Mandates that nonparticipating employers and their enrolled employees continue making contributions to their separate fund at rates consistent with participating employers, with the employer covering any additional amortization costs for unfunded liabilities.

• Specifies that nonparticipating employers cannot re-enter ASRS after their nonparticipation date and clarifies that provisions do not apply to employers that became nonparticipating on or before January 1, 2013.