The Arizona state legislature recently passed Senate Bill 1082, establishing an innovative contribution prefunding program for the state’s pension system for teachers and public workers. The program enables the Arizona State Retirement System’s (ASRS) employers—mostly local governments, universities, and school districts—to voluntarily pre-pay future employer pension contributions, with significant flexibility on how those dollars can be utilized. Employers who contribute to this program will improve their fiscal positions by prepaying their future contributions to enhance their future budget stability while also increasing the funded status of the total fund.
The Arizona State Retirement System is a cost-sharing, multiple-employer plan where participating
