What a refund pays
- Membership before July 1, 2011, leaving other than by retirement or death: under 5 years, the member's own contributions; 5 or more years, own contributions plus a percentage of employer contributions (5.0-5.9 years 25%, 6.0-6.9 40%, 7.0-7.9 55%, 8.0-8.9 70%, 9.0-9.9 85%, 10.0+ 100%); plus interest as determined by the board. A.R.S. 38-740(A)
- Membership on or after July 1, 2011: a return of all of the member's own contributions with interest as determined by the board. A.R.S. 38-740(B)
- A 2011+ member with 5 or more years who is terminated solely because of an employer reduction in force (lack of monies or elimination of the position) gets the pre-2011 amounts. A.R.S. 38-740(C)
| Credited service | Share of employer contributions |
|---|---|
| 5.0 to 5.9 years | 25% |
| 6.0 to 6.9 years | 40% |
| 7.0 to 7.9 years | 55% |
| 8.0 to 8.9 years | 70% |
| 9.0 to 9.9 years | 85% |
| 10.0 years or more | 100% |
Membership before July 1, 2011 (or a reduction in force). Under 5 years: your own contributions only. A.R.S. 38-740(A)
On leaving an ASRS employer: withdraw contributions now or later, roll them over to another retirement plan, or leave them for a future pension. ASRS New Member Guide, p. 3; A.R.S. 38-740; A.R.S. 38-711(23)(d)
Contributions
Total contribution rates are paid equally by the employee and the employer: each pays the stated rate. The pension and health insurance premium benefit part is deducted pre-tax; the long term disability part is post-tax. The rate is reset each July 1.
| Fiscal year | Pension and health (pre-tax) | Disability (after tax) | Total |
|---|---|---|---|
| Jul 1, 2026 to Jun 30, 2027 | 11.87% | 0.11% | 11.98% |
| Jul 1, 2025 to Jun 30, 2026 | 11.86% | 0.14% | 12.00% |
Your employer pays the same total. ASRS Fact Sheet (Dec. 2025); ASRS New Member Guide, p. 5; ASRS Session 4, p. 6; A.R.S. 38-736(A); A.R.S. 38-737
Member contributions are required by payroll deduction from the start of membership. Beginning July 1, 2011, the member rate equals the employer rate set under 38-737 (a 50/50 split). Employers 'pick up' member contributions under IRC 414(h), so they are pre-tax. ASRS New Member Guide, p. 5; A.R.S. 38-736(A)-(B)
Employer contributions are a percentage of compensation set each year by the ASRS actuary (normal cost plus amortization of the unfunded liability), never less than 2% of compensation since FY 2001-02. ASRS reports the next year's rate by Dec. 1. A.R.S. 38-737(A), (C)
Coming back
Forfeited service (from a refund) can be bought back at the refund amount plus compound interest; no minimum service is needed. ASRS Session 3, slide 6; A.R.S. 38-742(B)
A member keeps the original membership date across employers. A member who refunds (forfeits) and later returns gets a new membership date, even after buying back the forfeited service; the only exception is a pre-1984 member, for including termination pay in compensation. ASRS Employer Basics 2025, p. 24; A.R.S. 38-742(B)
From ASRS and the law
- Joined before July 1, 2011: a refund returns your contributions with interest; with 5+ years you also get part of the employer contributions (25% at 5 years, rising to 100% at 10 years).A.R.S. 38-740(A)
- Joined on or after July 1, 2011: a refund returns only your own contributions with interest, unless you were laid off in a reduction in force with 5+ years.A.R.S. 38-740(B)-(C)
- Taking a refund ends your membership and gives up all future ASRS benefits. You must first leave every ASRS employer.ASRS Employer Basics 2025, p. 32; A.R.S. 38-740(D)
- If you leave your contributions on deposit, you stay a member and can take a benefit later once eligible.ASRS New Member Guide, p. 3; A.R.S. 38-711(23)(d); A.R.S. 38-758(A)
- When you leave an ASRS employer you can take your contributions now or later, roll them over to another retirement plan, or leave them for a future pension.ASRS New Member Guide, p. 3; A.R.S. 38-740
Buying back refunded service is covered under buying service credit, and your new membership date changes which rules apply. If you leave your money in, your beneficiary is protected as described in survivor benefits.
Questions
Should I take a refund when I leave?
It depends. A refund ends your membership and gives up every other ASRS benefit (ASRS Employer Basics 2025, p. 32; A.R.S. 38-740(D)). If you leave your money in, you stay a member and can take a pension once you are eligible, from age 50 with 5 years (ASRS Retirement Eligibility page, table (EARLY: 50 + 5 years); ASRS Employer Basics 2025, p. 8; A.R.S. 38-758(A); A.R.S. 38-711(11)).
What are my choices when I leave?
On leaving an ASRS employer: withdraw contributions now or later, roll them over to another retirement plan, or leave them for a future pension. (ASRS New Member Guide, p. 3; A.R.S. 38-740; A.R.S. 38-711(23)(d))
How much do I pay into ASRS?
11.98% of pay from July 1, 2026, and your employer pays the same (ASRS Fact Sheet (Dec. 2025); ASRS New Member Guide, p. 5; ASRS Session 4, p. 6; A.R.S. 38-736(A); A.R.S. 38-737).
Do I get the employer's contributions back?
Only if your membership began before July 1, 2011 and you have at least 5 years, or you were laid off in a reduction in force (A.R.S. 38-740(A); A.R.S. 38-740(C)).
Source: ASRS Employer Basics 2025 handbook, March 2025 edition, saved Nov. 12, 2026; with other ASRS publications and the Arizona Revised Statutes, pp. 8, 24, 32. Also ASRS New Member Guide, pp. 3, 5. Also ASRS Fact Sheet. Also ASRS Basics for Employers, Session 3: Service Verification, Refunding, Retiring, Return to Work (slides), slide 6. Also ASRS Basics for Employers, Session 4: Health Insurance Premium Benefit (slides), p. 6. Also ASRS web page: Retirement Eligibility. Also A.R.S. 38-711, 38-736, 38-737, 38-740, 38-742, 38-758 (Arizona Revised Statutes, Title 38, Ch. 5, Art. 2). Last reviewed .