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Chapter 0041 - 572R - H Ver of HB2092
House Engrossed
ASRS; eligibility
waiver
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 41
HOUSE BILL 2092
AN
ACT
Amending section 38-727, Arizona
Revised Statutes; relating to the Arizona state retirement system.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 38-727, Arizona Revised
Statutes, is amended to read:
START_STATUTE
38-727.
Eligibility; options
A. The following provisions apply to all employees
hired on or after the effective date:
1. All employees and officers of this state and all
officers and employees of political subdivisions establishing a retirement plan
administered by the board pursuant to this article are subject to this article,
except that membership is not mandatory:
(a) On the part of any employee who is eligible and
who elects to participate in the optional retirement programs established by
the Arizona board of regents pursuant to the authority conferred by section 15-1628
or by a community college district board pursuant to authority conferred by
section 15-1451.
(b) For a state elected official who is subject to
term limits, who is elected or appointed before January 1, 2014, who is
eligible for participation in ASRS because the state elected official elected
not to participate in the elected officials' retirement plan as provided in
section 38-804, subsection A and who elects not to participate in ASRS as
provided in paragraph 7 of this subsection.
(c) On the part of any employee or officer who is
eligible to participate and who participates in the elected officials'
retirement plan pursuant to article 3 of this chapter, the elected officials'
defined contribution retirement system pursuant to article 3.1 of this chapter,
the public safety personnel retirement system pursuant to article 4 of this
chapter or the corrections officer retirement plan pursuant to article 6 of
this chapter.
2. All employees and officers of political
subdivisions whose compensation is provided wholly or in part from state monies
and who are declared to be state employees and officers by the legislature for
retirement purposes are subject, on legislative enactment, to this article and
are members of ASRS.
3. Any member whose service terminates other than by
death or withdrawal from membership is deemed to be a member of ASRS until the
member's death benefit is paid.
4. Employees and officers shall not become members
of ASRS and, if they are members immediately before becoming employed as
provided by this section, shall have their membership status suspended while
they are employed by state departments paying the salaries of their officers
and employees wholly or in part from monies received from sources other than
appropriations from the state general fund for the period or periods payment of
the employer contributions is not made by or on behalf of the departments.
5. Notwithstanding other provisions of this section,
a temporary employee of the legislature whose projected term of employment is
for not more than six months is ineligible for membership in
ASRS. If the employment continues beyond six successive months, the
employee may elect to either:
(a) Receive credit for service for the first six
months of employment and establish membership in ASRS as of the beginning of
the current term of employment if, within forty-five days after the first
six months of employment, both the employer and the employee contribute to ASRS
the amount that would have been required to be contributed to ASRS during the
first six months of employment as if the employee had been a member of ASRS
during those six months.
(b) Establish membership in ASRS as of the day
following the completion of six months of employment.
6. A person who is employed in postgraduate training
in an approved medical residency training program of an employer or a
postdoctoral scholar who is employed by a university under the jurisdiction of
the Arizona board of regents is ineligible for membership in ASRS.
7. A state elected official who is subject to term
limits, who is elected or appointed before January 1, 2014 and who is eligible
for participation in ASRS because the state elected official elected not to
participate in the elected officials' retirement plan as provided in section 38-804,
subsection A may elect not to participate in ASRS. The election not
to participate is specific for that term of office. The state
elected official who is subject to term limits shall make the election in
writing and file the election with ASRS within thirty days after the elected
official's retirement plan mails the notice to the state elected official of
the state elected official's eligibility to participate in ASRS. The
election is effective on the first day of the state elected official's
eligibility.� If a state elected official who is subject to term limits fails
to make an election as provided in this paragraph, the state elected official
is deemed to have elected to participate in ASRS. The election not
to participate in ASRS is irrevocable and constitutes a waiver of all benefits
provided by ASRS for the state elected official's entire term, except for any
benefits accrued by the state elected official in ASRS for periods of
participation before being elected to an office subject to term limits or any
benefits expressly provided by law.
8. A person may elect not to participate in ASRS if
the person becomes
employed by an employer
eligible to participate in ASRS
after the person has attained at least
sixty-five years of age, is not an active member, inactive member,
retired member or receiving benefits pursuant to article 2.1 of this chapter
and does not have any credited service or prior service in ASRS. The
employee shall make the election not to participate in writing and file the
election with ASRS within thirty days after
employment
becoming eligible to participate in ASRS
. The
election not to participate is irrevocable for the remainder of the person's
employment for which the person made the election and constitutes a waiver of
all benefits provided by
the Arizona state retirement system
ASRS
. The period the person works is not eligible
for purchase under section 38-743 or 38-744.
9. The following are ineligible for membership in
ASRS:
(a) A person who performs services in a hospital,
home or other institution as an inmate or patient at the hospital, home or
other institution.
(b) A person who performs agricultural labor
services, as defined in section 210 of the social security act.
(c) A person who is a nonresident alien temporarily
residing in the United States and who holds an F-1, J-1, M-1
or Q-1 visa when services are performed.
(d) A person who performs services for a school,
college or university in this state at which the person is enrolled as a
student, as defined by the employing institution. The employing
institution shall maintain an appeal process for a person who disagrees with
the employing institution's determination that the person is a student and not
eligible for membership in ASRS.
(e) A person who performs services under a program
designed to relieve the person from unemployment.
B. The following elected officials are subject to
this article if the member's employer is an employer under article 3 of this
chapter:
1. A state elected official who is subject to term
limits, who is elected or appointed on or before December 31, 2013 and who is
an active, an inactive or a retired member of ASRS or a member of ASRS with a
disability because the state elected official had previously elected not to
participate in the elected officials' retirement plan as provided in section 38-804,
subsection A.
2. An elected official, as defined in section 38-831,
who is an active, an inactive or a retired member of ASRS or a member of ASRS
with a disability, if the elected official's employer is a participating
employer under this article and the elected official is eligible for ASRS
service credit for the elected official's service.
END_STATUTE
APPROVED BY THE GOVERNOR APRIL 13, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 13, 2026.