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Mercer Human Resource Consulting was retained by the Arizona Legislative Council to conduct a study with recommendations relating to health insurance for retired and disabled members of the Arizona State Retirement System, the Public Safety Personnel Retirement System, the Corrections Officer Retirement Plan, and the Elected Officials’ Retirement Plan. Mercer encourages the readers of this study to use it as a tool to narrow down and further refine the options. Once a more focused approach or approaches are identified, further analysis should be undertaken to understand the potential impacts and to assess and answer the questions and issues mentioned in this study.
The ASRS defined benefit plan is not fully funded, but steps have been taken to improve its long-term sustainability and some additional actions can further strengthen its financial condition.