AZ SB1737

Requires retired public employees and elected officials to elect and maintain continuous enrollment in health, dental, or vision insurance plans by January 2, 2023, or forfeit future eligibility for those benefits.

Establishes a 31-day deadline for newly eligible retirees to make initial elections for health, dental, or vision coverage, with failure to elect resulting in permanent ineligibility.

Adds stress testing requirements to the Arizona State Retirement System (ASRS) annual actuarial valuations, including scenarios testing returns 2-4 percentage points below assumptions and a 20% one-year investment loss scenario.

Requires ASRS and the Public Safety Personnel Retirement System board to submit detailed annual investment reports by December 1 showing portfolio weights, net-of-fee returns for various periods, and benchmark comparisons.

Clarifies that public monies can only fund insurance premiums through amounts authorized from the retirement plan from which the retiree receives benefits.