Arizona Senate bill by Sen. Livingston allows military service credit in state retirement system

Newly passed bill authored by State Sen. David Livingston seeks to amend the Arizona State Retirement System rules to allow members to purchase credited service for military time, aiming to align benefits with federal regulations and provide consistency in retirement credit for military service, according to the Arizona State House.

It passed both chambers as of June 27, clearing the House by a vote of 49-3 and the Senate by a vote of 28-1.

The bill, introduced as HB2036 on Jan. 8, ahead of the official start of the 57th Legislature’s first regular session on Jan. 13, was formally listed with the short title: ‘ASRS; temporary personnel service’.

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

In essence, the bill amends section 38-745 of the Arizona Revised Statutes, concerning the Arizona State Retirement System (ASRS), allowing active ASRS members or those receiving benefits to purchase credited service for military service, provided they were honorably discharged and submit necessary documentation. Members with a membership start date on or after July 1, 2010, must have at least five years of ASRS service and cannot already be eligible for military retirement benefits. It limits the purchased service to 60 months for members joining on or after July 20, 2011. Additionally, it specifies that members called to active military service or appointed as temporary federal personnel can receive up to 60 months of credited service, with required contributions from both the member and employer, with certain conditions based on service termination and return to employment. Benefits and contributions align with federal regulations, and certain death and disability provisions are outlined. The bill takes into account the need for consistency with section 414(u) of the Internal Revenue Code regarding differential wage payments.

In the House, 23 Democrats and 26 Republicans voted in favor while three Republicans opposed it.

Meanwhile, in the Senate, 13 Democrats and 15 Republicans voted in favor while one Republican voted against it.

Livingston introduced the bill in the Arizona House on Jan. 8 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.