Arizona Senate bill by Sen. Livingston enables supplemental retirement deferral plans

Passed bill authored by State Sen. David Livingston aims to enable the Arizona State Retirement System to establish supplemental employee deferral plans, allowing public employees to save additional tax-deferred funds for retirement while defining participation and liability parameters, according to the Arizona State House.

It passed both chambers as of June 27, clearing the House by a vote of 58-1 and the Senate by a vote of 28-1.

The bill, introduced as HB2034 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; supplemental employee deferral plan’.

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

In essence, this bill amends Section 38-781 of the Arizona Revised Statutes to enable the Arizona State Retirement System (ASRS) to establish and manage supplemental employee deferral plans, allowing public employees to save additional tax-deferred funds for retirement. ASRS can contract with multiple vendors and perform necessary acts for plan administration. Participation by employees requires salary reductions, with these contributions immediately vested. Employer contributions, if permitted by the plan, vest according to a set schedule. The state, its officers, ASRS, and related entities are immune from civil liability concerning these plans. Political subdivisions may allow employee participation through agreements with ASRS but cannot imply additional ASRS benefits beyond the supplemental plan. The bill also specifies definitions for “state” and “supplemental employee deferral plan.” The effective date is after July 1, 2022, respecting eligibility criteria.

In the House, 25 Democrats and 33 Republicans voted in favor while one Democrat 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.