The ASRS (Arizona State Retirement System) is a defined benefit plan and is tax qualified under section 401(a) of the Internal Revenue Service Code. It provides a lifelong benefit based on years of service earned, or worked, and your ending salary. It is not the same structure as a 401(k) or other defined contribution plans, which provide for a benefit based on dollars contributed, plus interest earned.
Employees are required to register and will have two deductions taken out of every paycheck for ASRS. One is for retirement and one is for long-term disability. Retirement contributions are pre-tax deductions, and long-term disability contributions are after-tax deductions. The District matches the employee’s contributions. The current contribution rate is 12.22%.
The registration process with the retirement system is completed during the District’s new-hire orientation. If new-hires have worked for another employer where contributions were made to ASRS, re-registration is necessary and employees will select Glendale Elementary School District as their new employer.