Arizona House bill by Rep. Livingston addresses contributions and liabilities in public retirement systems

Passed bill authored by State Rep. David Livingston seeks to clarify contribution requirements and liabilities within Arizona’s public retirement systems, aiming to ensure consistent funding and address unfunded liabilities, according to the Arizona State House.

It passed both chambers as of June 27, clearing the House by a vote of 49-2 and the Senate by a vote of 21-8.

The bill, introduced as HB2015 on Jan. 3, ahead of the official start of the 57th Legislature’s first regular session on Jan. 13, was formally listed with the short title: ‘EORP; CORP; funded ratio’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the Arizona Revised Statutes to address contributions and liabilities within public retirement systems. It stipulates that members must contribute prescribed amounts through payroll deductions, while employers contribute based on actuarial valuations to cover normal costs and amortize unfunded liabilities over designated periods. This bill outlines rules for transferring assets, establishing penalties for delayed payments, and details payment methods for employer and employee contributions. It emphasizes maintaining a minimum contribution rate and prohibits benefit increases using certain contributions. Effective July 1, 2018, the bill includes specific contribution rates for elected and new officials and appropriates $5 million annually from the state general fund through fiscal year 2042-43 to supplement contributions and address unfunded liabilities.

In the House, 22 Democrats and 27 Republicans voted in favor while two Republicans opposed it.

Meanwhile, in the Senate, 13 Democrats and eight Republicans voted in favor while eight Republicans voted against it.

Livingston introduced the bill in the Arizona House on Jan. 3 ahead of the official start of the 57th Legislature’s first regular session on Jan. 13.

Livingston graduated from Arizona State University in 1988 with a BS.

Livingston, a Republican, was elected to the Arizona State House in 2023 to represent the state’s 28th House District, replacing previous state representative Kelli Butler.

The bill was signed into law by Gov. Katie Hobbs on July 1.

In Arizona, the legislative process begins when a bill is introduced in either the House of Representatives or the Senate. It is then assigned to one or more committees for discussion and possible amendment. If approved by committee, the bill proceeds to floor debate and voting in both chambers. If both chambers pass the bill, it is sent to the governor, who may sign it into law, veto it, or allow it to become law without a signature. The Arizona Legislature convenes annually in regular session starting the second Monday in January. Lawmakers introduce hundreds of bills each session, though only a portion make it into law. You can learn more about the legislative process on the Arizona State Legislature website.