Active member
A member who is working enough to be in ASRS (at least 20 weeks a fiscal year and 20 hours a week) and is paying contributions.
Actuarial equivalent
Equal in value, based on mortality and interest assumptions approved by the board.
Average monthly compensation (AMC)
The monthly average of your highest 36 or 60 consecutive months of pay within your last 120 months of service.
Contingent annuitant
The person you name to receive income after your death under a survivor option.
Credited service
The service on ASRS's books, one month for each month in which you contributed.
Early retirement
Retiring before your normal retirement date, once you are at least 50 with 5 years of service.
Graded multiplier
The percentage per year of service (2.10% to 2.30%). Your total service picks it, and it applies to all your years.
Inactive member
A member who has stopped working for an ASRS employer but has not retired or taken a refund.
Late retirement
Retiring after your normal retirement date.
Normal retirement age
The age at which you reach your normal retirement date.
Normal retirement date
The earliest date you meet an age or age-and-service rule for an unreduced benefit.
Partial lump sum
A one-time payment at retirement of up to 36 months of benefits, in exchange for a smaller monthly check for life.
Period certain and life annuity
Lifetime payments that are guaranteed for 5, 10 or 15 years, so a person you name gets any payments left if you die early.
Permanent benefit increase
A raise paid from July 1 when investment earnings beat 8%. It is not automatic.
Premium benefit
ASRS's monthly payment toward a retiree's health insurance premium, up to amounts set in law.
Reretirement
Retiring again after you went back to work and your pension was suspended.
Rule of 80
For membership that began before July 1, 2011, normal retirement once your age plus years of service equal 80 (for example, age 57 with 23 years).
Service year
The fiscal year (July 1-June 30), or your normal work year or contract period if it is at least nine months.
Straight life annuity / life annuity
Equal monthly payments for your lifetime only.
Vested
Eligible to receive a future retirement benefit.
No terms match. Try a shorter word.
The terms in use: the benefit formula, which rules apply to you, and the early-retirement factors.
Plain English, not the official wordingThese definitions put ASRS's publications and the Arizona Revised Statutes into everyday words. They aren't ASRS's official definitions, and they aren't legal or financial advice. ASRS decides your benefit.
Source: ASRS Employer Basics 2025 handbook, March 2025 edition, saved Nov. 12, 2026; with other ASRS publications and the Arizona Revised Statutes, pp. 8, 9. Also ASRS Application for Re-Retirement Benefit, p. 2. Also ASRS web page: Retiree Health Insurance Premium Benefit and Optional Health Insurance Premium Benefit. Also ASRS web page: Estimate Your Benefits. Also A.R.S. 38-711, 38-757, 38-760, 38-766, 38-767, 38-783 (Arizona Revised Statutes, Title 38, Ch. 5, Art. 2). Last reviewed .