"Arizona's Leader in Phased Retirement"

 

What exactly is
phased retirement?

 

Phased Retirement provides the opportunity for retirement eligible individuals to retire, start drawing their pension and go back to work immediately in their same position (or for one in which they are qualified).  Employees typically increase their gross earnings by close to 50%, while school districts save 20-30% per employee.  Further, there is no impact on the Arizona State Retirement System as an Alternate Contribution Rate must be paid on behalf of the retiree for taking the position of a normal active contributing member.

 

Return to Work (RTW) Legislation

 

Arizona law allows a member to terminate employment, retire from the ASRS and return immediately as a Phased Retiree without suspension or penalty of pension.  Essentially, an employee severs their relationship with the District and becomes an employee of smartschoolsplus. Employee's are not considered to be "Common Law" employees and there is no unfunded liability to the ASRS for Districts utilizing our services.  

Return to Work

The alternate contribution rate (ACR)

 

smartschoolsplus worked closely with the ASRS retirement system to help create the Alternate Contribution Rate.  This fee is paid by the District on behalf of the employee to "mitigate the potential actuarial  impact that retired members who return to work might have on the Trust Fund." In 2014, the fund generated over $25 million in ACR payments which helped drive the active contribution rate down by .25%.  This means all active contributing members and Districts would have been paying .25% more if the ACR didn't exist!

Alternate Contribution Rate 


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