Bill Text: AZ HB2026 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: ASRS; administration
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2011-01-11 - House ERA Committee action: Discussed and Held [HB2026 Detail]
Download: Arizona-2011-HB2026-Introduced.html
PREFILED JAN 04 2011
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REFERENCE TITLE: ASRS; administration |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HB 2026 |
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Introduced by Representative Robson
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AN ACT
amending sections 38‑714, 38‑735 amd 38‑756, 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 38-714, Arizona Revised Statutes, is amended to read:
38-714. Powers and duties of ASRS and board
A. ASRS shall have the powers and privileges of a corporation, shall have an official seal and shall transact all business in the name "Arizona state retirement system", and in that name may sue and be sued.
B. The board is responsible for supervising the administration of this article by the director of ASRS, except the investment powers and duties of investment management.
C. The board is responsible for the performance of fiduciary duties and other responsibilities required to preserve and protect the retirement trust fund established by section 38‑712.
D. The board shall:
1. Prescribe investment goals, objectives and policies that are consistent with the purposes of this article and the limitations and standard of care prescribed in section 38‑719, subsection B.
2. Allocate assets to meet the investment goals, objectives and policies it prescribes.
3. Adopt specific policy directives for the guidance of investment management.
4. Meet with each investment manager at least annually or at the request of a board member to review the investment manager's performance and the investment manager's attainment of and adherence to the board's investment goals, objectives and policies.
5. Establish a procedure for the adoption, amendment or repeal of rules for the administration of the plan, this article and articles 2.1 and 7 of this chapter.
E. The board shall not advocate for or against legislation providing for benefit modifications, except that the board shall provide technical and administrative information regarding the impact of benefit modification legislation.
F. The board may:
1. Determine the rights, benefits or obligations of any person under this article and afford any person dissatisfied with a determination a hearing on the determination.
2. Determine the amount, manner and time of payment of any benefits under this article.
3. Assign, transfer and deliver all stocks, bonds and other investments owned by ASRS if it is not inconsistent with or does not in any way contravene the authority of investment management for investing, reinvesting, purchasing and selling stocks, bonds and other investments.
4. Recommend amendments to this article and articles 2.1 and 7 of this chapter that are required for efficient and effective administration.
5. Adopt, amend or repeal rules for the administration of the plan, this article and articles 2.1 and 7 of this chapter.
6. Prescribe investment diversification programs and assign investment management responsibilities regarding those programs as it deems appropriate to achieve its investment goals, objectives and policies.
G. The board shall submit to the governor and legislature for each fiscal year no later than eight months after the close of the fiscal year a report of its operations and the operations of ASRS. The report shall follow generally accepted accounting principles and generally accepted financial reporting standards and shall include:
1. A report on an actuarial valuation of ASRS assets and liabilities.
2. Any other statistical and financial data that may be necessary for the proper understanding of the financial condition of ASRS and the results of board operations.
3. On request of the governor or the legislature, a list of investments owned. This list shall be provided in electronic format.
H. The board shall:
1. Prepare and publish a synopsis of the annual report for the information of ASRS members.
2. Contract for a study of the mortality, disability, service and other experiences of the members and employers participating in ASRS. The study shall be conducted for fiscal year 1990‑1991 and for at least every fifth fiscal year thereafter. A report of the study shall be completed within eight months of the close of the applicable fiscal year and shall be submitted to the governor and the legislature.
3. Conduct an annual actuarial valuation of ASRS assets and liabilities.
I. ASRS is exempt from title 41, chapter 6.
I. J. The auditor general may make an annual audit of ASRS and transmit the results to the governor and the legislature.
Sec. 2. Section 38-735, Arizona Revised Statutes, is amended to read:
38-735. Payment of contributions; recovery of delinquent payments
A. All amounts deducted from a member's compensation as provided in section 38‑736 and employer contributions required pursuant to section 38‑737 shall be paid to ASRS for deposit in the ASRS depository.
B. Each employer shall certify on each payroll the amount to be contributed and shall remit that amount to ASRS.
C. Payments made by employers pursuant to this article by employers or article 2.1, 7 or 8 of this chapter become delinquent after the due date prescribed in the board's rules and thereafter shall be increased by interest from and after that date until payment is received by ASRS. ASRS shall charge interest on the delinquent payments at an annual rate equal to the interest rate assumption approved by the board from time to time for actuarial equivalency. Delinquent payments due under this subsection article or article 2.1, 7 or 8 of this chapter, together with interest charges as provided in this subsection, may be recovered by action in a court of competent jurisdiction against a political subdivision an employer that is liable for payments or, at the request of the director, may be deducted from any other monies, including excise revenue taxes, payable to the political subdivision employer by any department or agency of this state. The employer shall record delinquent payments that are recovered or deducted from other monies pursuant to this subsection pursuant to applicable accounting and financial reporting standards.
Sec. 3. Section 38-756, Arizona Revised Statutes, is amended to read:
38-756. Outreach education program
A. The director shall develop, implement and maintain an outreach education program for members of ASRS that is designed to provide basic information on retirement planning.
B. The outreach education program prescribed in subsection A shall include at least the following:
1. Information on the benefits available to members before retirement.
2. Information on the financial benefits available at retirement, including a detailed explanation of the benefits and benefit options under ASRS.
3. Information on how ASRS is organized.
4. Information on how the benefits of the members are funded.
5. Information on the social issues related to retirement.
6. The use of audiovisual, electronic and other educational aids that are designed to provide information on retirement education and planning.
7. The development of a creative promotional program using available media outlets.
C. ASRS shall present, either in person or through electronic means, the outreach education program prescribed in subsection A at least once each year in each county of this state. Attendance of active members at outreach education program presentations is voluntary. END_STATUTE
