AZ HB2502

Allows elected officials who reach normal retirement age to retire from the Arizona State Retirement System (ASRS) while continuing to serve in their elected position without terminating employment.

Retired elected officials who continue serving are not eligible for long-term disability benefits and do not earn additional service credit while retired.

Requires employers to pay an alternate contribution rate on behalf of elected officials who retire while continuing in their elected position.

Prohibits retired elected officials from being employed in nonelected positions with ASRS employers unless they terminate those positions or reduce hours below active membership thresholds.

Modifies return-to-work provisions to allow any elected official who reaches normal retirement age to return to work and receive retirement benefits, removing the previous limitation to only state elected officials subject to term limits.