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Committee advances bill defining unfunded liability for termination‑incentive calculations
Summary
House Bill 20 35, a technical measure to define ‘unfunded liability’ for termination incentive programs, was returned with a due‑pass recommendation after staff and ASRS testimony clarified the actuarial comparison used to calculate the liability.
The House Ways and Means Committee returned House Bill 20 35 with a due‑pass recommendation after staff described the measure as a statutory definition needed for calculating unfunded liabilities tied to termination incentive programs.
Committee staff explained the bill would define the unfunded liability for a termination incentive as the difference between two actuarial accrued liabilities using ASRS valuation assumptions: one that includes the termination incentive and one that does not. “This is really just clarifying in statute what and how an unfunded liability would be calculated if someone is utilizing a termination incentive program,” Representative Livingston, the bill sponsor, said.
Jessica Thomas, legislative liaison for the Arizona State Retirement System, told the committee ASRS supports the clarification and can answer technical questions. Committee members raised no additional concerns and the committee voted to return the bill with a due‑pass recommendation; roll call showed eight ayes, zero nays and one absence.
The bill is limited to defining the actuarial basis used to measure any unfunded liability created by employer termination incentives; it does not itself create or fund termination incentive programs.
