Bill Text: AZ HB2018 | 2014 | Fifty-first Legislature 2nd Regular | Engrossed
Bill Title: Mortgages; trust deeds; deficiency actions
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-04-22 - Chapter 129 [HB2018 Detail]
Download: Arizona-2014-HB2018-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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HOUSE BILL 2018 |
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AN ACT
Amending sections 38‑764 and 38‑766, Arizona Revised Statutes; relating to the ARizona state retirement system.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 38-764, Arizona Revised Statutes, is amended to read:
38-764. Commencement of retirement; payment of retirement benefits; lump sum payments
A. Retirement is deemed to commence on a date elected by the member. That date shall not be earlier than the day following the date of termination of employment, the date ASRS receives the member's completed retirement application or the date specified by the member pursuant to subsection I of this section.
B. Except as provided in subsection C of this section, all retirement benefits:
1. Are normally payable in monthly installments beginning on the commencement of retirement as prescribed in subsection A of this section.
2. Continue to and include the first day of the month in which death occurs or continue until the date of their cessation in accordance with any optional method of payment that may have been elected.
C. In the case of incapacity of a retired member or contingent annuitant, or in the case of any other emergency, as determined by the board, the board may make the payment to or on behalf of the retired member or contingent annuitant or to another person or persons the board determines to be lawfully entitled to receive payment. The payment is payment for the account of the retired member or contingent annuitant and all persons entitled to payment and, to the extent of the payment, is a full and complete discharge of all liability of the board or ASRS, or both, under or in connection with ASRS.
D. Except as provided in subsection E of this section, at the request of a retired member, a retired member's guardian or a court appointed conservator, the board may pay any increase in retirement benefits or the entire retirement benefit in a lump sum payment based on the actuarial present value of the benefit or the increase in the benefit if the payment of the benefits would result in ineligibility, reduction or elimination of social service programs provided to the member by this state, its political subdivisions or the federal government.
E. The board may pay the entire retirement benefit in a lump sum pursuant to subsection D of this section only if continued membership in ASRS will result in additional requests for lump sum payments based on cost of living adjustments or the establishment of minimum benefit awards.
F. If any benefit that is payable as a series of periodic payments amounts to less than a threshold amount determined by the board, the board, in its sole discretion and based on uniform rules it establishes, may order the amount to be paid in a lump sum. A member who receives a lump sum payment pursuant to this subsection remains a member of ASRS and is eligible for the coverage provided pursuant to section 38‑782 and the payment pursuant to section 38‑783, but is not eligible for a benefit increase pursuant to section 38‑767.
G. All distributions of retirement benefits to a member shall be distributed within the required distribution provisions of section 401(a)(9) of the internal revenue code and the regulations that are issued under that section by the United States secretary of the treasury as prescribed in section 38‑775.
H. A member may elect to cancel the effective date of retirement within thirty days of retirement or before the member's receipt of retirement benefits, whichever is later.
I. A member who attains a normal retirement date may retire at any time without terminating employment if the member is employed for less than the hours required for active membership pursuant to section 38‑711, paragraph 23, subdivision (b). A member whose retirement date is on or after January 1, 2015 may retire without terminating employment if the member also attains at least sixty-two years of age.
Sec. 2. Section 38-766, Arizona Revised Statutes, is amended to read:
38-766. Retired members; return to work; suspension of benefits; exceptions; maximum benefit
A. A retired member who is engaged to work by an employer for at least twenty weeks in each fiscal year and at least twenty hours per week resumes active membership in ASRS. ASRS shall suspend payment of the member's retirement benefits until the member either:
1. Terminates employment and files an application for reretirement on a form that is approved by the director.
2. Attains a normal retirement date, No longer meets the requirements for active membership pursuant to this subsection and files an application for reretirement on a form that is approved by the director and attains a normal retirement date, or if the member retires on or after January 1, 2015, attains a normal retirement date and attains at least sixty-two years of age.
B. A retired member whose retirement benefits have been suspended pursuant to subsection A of this section shall repay ASRS any retirement benefits received by the member from the date ASRS notifies the member in writing that the member's employment resulted in active membership in ASRS pursuant to subsection A of this section, from the date ASRS determines that the member knew or should have known that the member's employment resulted in membership in ASRS pursuant to subsection A of this section or for any other period that approximates the duration of the violation, as determined by ASRS.
C. A member who satisfies subsection A, paragraph 1 or 2 of this section is entitled to receive an annuity recomputed to include the additional compensation and credited service. However, the recomputed annuity shall be in the original optional form chosen pursuant to section 38‑760, with the same beneficiary, if applicable, as when the member first retired, unless the member has resumed active membership for at least sixty consecutive months. A member who retired under a provision of law allowing increased benefits if the retirement occurred during a specific period of time and who subsequently becomes an employee under ASRS shall not retain the increased benefits under the prior law when benefits are computed for the member's most recent retirement.
D. Notwithstanding subsection A of this section, ASRS shall not suspend the payment of retirement benefits if a retired member begins or returns to employment with an employer in a position that satisfies all of the following:
1. Results in a true change in position, job duties and job title from the position occupied by the member before ASRS retirement.
2. Either:
(a) Requires participation in another state retirement system, plan or program and the retired member makes contributions or waives participation pursuant to section 38‑804, subsection A.
(b) Permits a member to elect to participate in another state retirement system, plan or program and the member makes such an election.
3. Does not require membership in the defined benefit plan established by this article.
E. A retired member who returns to work pursuant to subsection D of this section does not accrue credited service, member service as provided in section 15‑1628, subsection B, paragraph 4, additional account balances, retirement benefits or long-term disability program benefits pursuant to article 2.1 of this chapter for the period the retired member returns to work. The period the retired member returns to work is not eligible for purchase under section 38‑743 or 38‑744.
F. Section 38‑769, subsection L applies when determining the maximum benefit that may be paid to a retired member who resumes active membership and subsequently retires.
G. An employer that engaged the retired member to work pursuant to this section shall pay to ASRS an amount equal to the rate established by the actuary pursuant to section 38-766.02, subsection B for the period starting with the first day the retired member began working after retirement through the earlier of:
1. The date the member terminates employment.
2. The date the employer begins payment for that member pursuant to section 38‑766.02.
3. The date the member resumes active membership pursuant to subsection A of this section and the member and employer are required to make contributions pursuant to section 38‑736, 38‑737 or 38‑738.
H. Beginning January 1, 2015, except as provided in section 38‑764, subsection I, if a retired member returns to direct employment with an employer within thirty days after the member's retirement date, ASRS shall suspend the member's retirement benefit.
