Bill Text: AZ HB2159 | 2016 | Fifty-second Legislature 2nd Regular | Chaptered
Bill Title: ASRS; rulemaking exemption
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-05-17 - Chapter 321 [HB2159 Detail]
Download: Arizona-2016-HB2159-Chaptered.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-second Legislature Second Regular Session 2016
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CHAPTER 321
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HOUSE BILL 2159 |
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AN ACT
Amending sections 38‑714 and 38-721, 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.
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 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.
E. 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. Recommend amendments to this article and articles 2.1 and 7 of this chapter that are required for efficient and effective administration.
4. Adopt, amend or repeal rules for the administration of the plan, this article and articles 2.1 and 7 of this chapter.
F. Beginning June 30, 2016, the board shall determine which of the generally accepted actuarial cost methods shall be used in the annual actuarial valuation of the plan.
G. The board and ASRS are not subject to title 41, chapter 6, except title 41, chapter 6, article 10, for actuarial assumptions and calculations, investment strategy and decisions and accounting methodology.
G. H. 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. I. 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 after 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. J. The auditor general may make an annual audit of ASRS and transmit the results to the governor and the legislature.
Sec. 2. Section 38-721, Arizona Revised Statutes, is amended to read:
38-721. Administration account
A. ASRS shall maintain an administration account consisting of all monies for administrative purposes. The following monies shall be deposited in the administration account:
1. All monies appropriated by the legislature to pay administrative expenses of ASRS.
2. All monies received for proportionate shares of administrative expenses from departments that pay the salaries of their officers and employees wholly or in part from monies received from sources other than appropriations from the state general fund.
3. All monies received for proportionate shares of administrative expenses from political subdivisions paying employer contributions.
4. Monies that the director transfers from the investment account and that are necessary for the payment of expenditures made pursuant to subsections C and D of this section.
B. Except as provided in subsection C of this section, expenditures from the administration account shall be made in accordance with board directives, subject to legislative appropriation.
C. Expenditures for the following are continuously appropriated and shall be paid from the administration account in the amount deemed necessary by the board:
1. Investment management fees and related consulting fees necessary to meet the board's investment objectives.
2. Rent.
3. Actuarial consulting fees.
4. Retiree payroll.
D. With the approval of the board, the director:
1. May expend monies from the administration account for staff, expenses and related consulting fees necessary to implement section 38‑714, subsection E, paragraph 1 and subsection H I, paragraphs 2 and 3, section 38‑718, subsection D, paragraph 5 and sections 38‑755 and 38‑756.
2. Shall pay from the administration account the costs for administering the health insurance program for retired members pursuant to section 38‑782, the cost of continuing education programs for the board and the cost of legal counsel.
Sec. 3. Retroactivity
Sections 38‑714 and 38-721, Arizona Revised Statutes, as amended by this act, apply retroactively to from and after December 31, 1986.
Sec. 4. Purpose
The purpose of this act is to clarify that the Arizona state retirement system actuarial and investment decisions are fiduciary decisions that are not subject to rulemaking.
APPROVED BY THE GOVERNOR MAY 17, 2016.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 18, 2016.
