Arizona SB 1053: ASRS; board powers

Bill Text

SB1053 - 531R - I Ver 

 REFERENCE TITLE: ASRS; board powers

 State of Arizona

 Senate

 Fifty-third Legislature

 First Regular Session

 2017

 SB 1053

 Introduced by 

 Senator 
 Kavanagh

AN 
ACT

amending section 38‑714, 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:

START_STATUTE38-714. 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 any member 
under articles 2.1 and 7 of this chapter and afford any person dissatisfied with a 
determination a hearing on the determination. The board may delegate 
the duty and authority to act on the board's behalf to a committee of the board 
for the purposes of this paragraph and title 41, chapter 6, article 10 relating 
to any decision made under this paragraph by that committee of the board.

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.

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 an electronic format.

4. An 
estimate of the aggregate fees paid for private equity investments, including 
management fees and performance fees.

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 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.

J. The 
auditor general may make an annual audit of ASRS and transmit the results to 
the governor and the legislature. END_STATUTE