ASRS 20/20 Rule and Report
In most cases to be eligible for primary retirement participation, you need to be a regular employee. Some employees become eligible for primary retirement participation when they previously had not been considered eligible.
The following variable hour types of employee could become eligible for primary retirement participation based on the hours that they work in a fiscal year:
- Part-time temporary
- Part-time faculty
What is the ASRS 20/20 Rule?
The ASRS 20/20 rule states that an employee becomes a member of the Arizona State Retirement System (ASRS) when that employee is engaged to work at least 20 hours a week for at least 20 weeks in a fiscal year. This is referred to as the “20/20 criteria” for membership. [A.R.S.§ 38-711(23)(b)]
The number of weeks in which an employee works at least 20 or more hours per week in the fiscal year are cumulative and do not have to be consecutive.
What employee groups does the ASRS 20/20 rule apply to? Accordion Closed
The ASRS 20/20 rule applies to:
- Part-time faculty
- Part-time temporary employees.
Exempt employee groups from the ASRS 20/20 rule Accordion Closed
The following employee groups are exempt:
- Student workers
- Graduate assistants
- F-1, J-1, M-1 and Q-1 visa holders
- ASRS retirees:
- a normal retiree of ASRS will not participate in ASRS again
- an early ASRS retiree could suspend their retirement with ASRS and become a contributing member again
How do I monitor temporary employees for the 20/20 rule? Accordion Closed
Human Resources (HR) posts the 20/20 Rule Report on the HR website typically by the close of business each payday Friday. The report provides information on the number of weeks a part-time temporary employee or a part-time faculty have worked 20 or more hours per week in the current fiscal year.
Any employee with a NAU login can access the report. The report can be found under tools on the right sidebar.
How to read the the ASRS 20/20 report? Accordion Closed
- Access the report under “tools”
- Login using your NAU CAS login
- Search for the employee by name or employee ID
- On the report find the “Weeks Over” column – that’s the # of weeks the employee has worked 20+hours thus far
The Report lists active multiple jobs and the week count reflects combined hours worked each week in all positions
Does HR notify employees/supervisors of trending and newly enrolled employees? Accordion Closed
While it is the supervisor’s responsibility to monitor the number of hours their part-time temporary or part-time faculty work, HR emails the following notifications:
- Trending notifications to the “Reports To” listed in PeopleSoft for the employee. The trending notifications are sent each pay period starting at the 13th week of when an employee has worked at least 20 hours per week.
- Enrollment notifications are sent to the employee and “reports to” when an employee has met the ASRS 20/20 rule, by working at least 20 hours per week for at least 20 weeks in the fiscal year.
How are employees who exceed the 20/20 rule contacted about their retirement enrollment? Accordion Closed
Once a part-time temporary employee or part-time faculty member has worked at least 20 hours per week for at least 20 weeks, HR will email a notification to the employee and Reports To. The email will indicate the pay period in which the employee hit the 20th week and the message will provide further information on the next steps for the employee.
What retirement options does the employee have who has exceeded the 20/20 rule? Accordion Closed
Part-time temporary employees who exceed the 20/20 rule are automatically enrolled in the Arizona State Retirement System. Further information on ASRS can be found here:
Part-time faculty who exceed the 20/20 rule are offered the option to enroll in the Arizona State Retirement System or the Optional Retirement Plan (ORP). Further information can be found here:
Arizona State Retirement System:
Optional Retirement Plan:
When is the retirement enrollment effective? Accordion Closed
When an employee has worked at least 20 hours per week for at least 20 weeks they are required to participate in primary retirement.
For a new member of ASRS the retirement is effective the first day of the pay period following a 183-day waiting period. This waiting period is from the date of employment in ANY temporary position provided there was not a break in service.
For a member whose status with ASRS is either “contributed” (monies on account with ASRS from previous ASRS employment) or “forfeited” (within the past two years) the enrollment is effective the first day of the pay period in which the employee exceeded the 20/20 rule. This may require a retro-active benefit adjustment. HR will notify the employee about any HR verifies the effective date and ASRS status so there is nothing the employee or supervisor needs to monitor.
Employees eligible for the Optional Retirement Plan (ORP) retirement is effective the first day of the pay period following election date.
When does the 20/20 rule week count start over? Accordion Closed
The week count starts over the pay period containing July 1. The number of weeks in which an employee works at least 20 or more hours per week in the fiscal year are cumulative and do not have to be consecutive.
Best practices to avoid exceeding the ASRS 20/20 rule Accordion Closed
Planning is key!
- Part-time employees and part-time faculty can work 20 hours or more for up to 19 weeks and thereafter reduce the employee’s hours to 19 hours or less per week through the end of the fiscal year.
- Example: work your part-time employees and part-time faculty 20 hours (**or more) per week for up to 19 weeks and thereafter reduce the employee’s hours to 19 hours or less per week through the end of the fiscal year.
- **WARNING: Be mindful of 29-hour work rule!
- TIP: If you manage someone not to exceed 20/20 rule then they will naturally fall below the 29-hour rule threshold!
- Ensure that your part-time faculty is teaching no more than seven credit hours over the whole semester.
- If the intent is for your employee to work 30 hours or more for an extended period of time, consider recruiting for a benefit-eligible position.
Does your employee work for other NAU departments?
- If the employee has multiple positions with the University, coordinate efforts with affected departments to manage the employee’s weekly hours.
Review the ASRS 20/20 Report
- Monitor the number of weeks your employees are at on the ASRS 20/20 report each pay period.
- You may need to consider reducing the number of hours your part-time faculty/part-time temporary employees are working.
Who can I contact with questions?
- Questions on the 20/20 rule contact:
- Annie Terhaar at 928-523-1656, Annie.Terhaar@nau.edu
- Questions on the 29-hour rule contact:
- Amy Ulibarri at 928-523-0002, Amy.Ulibarri@nau.edu.
- For questions about hiring practices for variable hour employees contact your Talent Acquisition Coordinator.