May 8, 2013(Key vote)
Title: Amends Retirement Plans for Elected Officials
Vote Smart's Synopsis:
Vote to pass a bill that amends the state employee retirement system for elected officials.
- Requires an elected state official to be enrolled in the “defined contribution system,” unless he or she meets the following conditions (Secs. 2, 5 & 8):
- He or she is subject to term limits;
- He or she is elected or appointed before December 31, 2013;
- He or she is a member of the existing Arizona state retirement system;
- He or she is an employee of an employer which participates in the existing Arizona state retirement system; and
- He or she elects, in writing, to continue or resume his or her participation in the existing Arizona state retirement system within thirty days of the beginning of his or her term of office.
- Defines “defined contribution system” as the elected officials’ defined contribution retirement system established by the provisions of this bill (Sec. 8).
- Prohibits an elected official who is elected, appointed, or hired on or after January 1, 2014 and who was not a member of the plan on December 31, 2013 from becoming a member of the defined contribution plan (Sec. 5).
- Requires an elected state official enrolled in the “defined contribution system” to contribute 8 percent of his or her gross compensation into his or her retirement annuity account (Sec. 8).
- Requires the employer of an elected state employee enrolled in the “defined contribution system” to contribute an amount equal to 6 percent of that employee’s gross compensation into that employee’s retirement annuity account (Sec. 8).
- Specifies that any money an employer contributes to an employee’s retirement annuity account is excluded from that employee’s gross income for federal and state income tax purposes (Sec. 8).
- Appropriates 5 million dollars annually from the State General Fund to the Elected Officials’ Retirement Plan Fund in fiscal years 2013-2014 through 2042-2043 (Sec. 6).
NOTE: THIS VOTE RECONSIDERS A PREVIOUS VOTE.