The function of the Arizona State Retirement System is to administer retirement plans, retiree health insurance plans, long-term disability plan and other benefits to qualified state employees, notes the Arizona State Retirement System. As of 2105, membership to the state agency includes the State of Arizona, community college districts, the three state universities, school districts and charter schools in Arizona.Continue Reading
The ASRS deducts contributions from employees' paychecks in two parts: a pre-tax deduction that caters for retirement and health insurance plans, and an after tax deduction for disability plans. The employer makes an equal contribution on behalf of the employee, reports the ASRS. It is a requirement for state employees who work for at least 20 hours per week for 20 weeks or more in a financial year to make contributions to the ASRS, says Maricopa Community Colleges.
Defined benefit plan provides a retirement benefit to a qualified member, and has seven payment options that include straight life annuity, term certain, and joint and survivor annuities. Premium benefit supplement provides health insurance to retirees and a monthly premium to offset retiree health insurance costs. Long term disability offers a monthly payment as a partial replacement for income lost due to disability, explains the ASRS.
After every financial year, an independent actuary assesses the contribution rate and presents it to the ASRS Board for review. If the Board approves it, the new rate takes effect from July of the following year, claims the ASRS.Learn more about Financial Planning