Bill Text: AZ SB1211 | 2012 | Fiftieth Legislature 2nd Regular | Engrossed
Bill Title: PSPRS; DROP participants; contributions
Spectrum: Strong Partisan Bill (Republican 31-2)
Status: (Engrossed - Dead) 2012-02-09 - Transmit to House [SB1211 Detail]
Download: Arizona-2012-SB1211-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
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SENATE BILL 1211 |
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AN ACT
amending sections 38‑844.05 and 38‑844.08, Arizona Revised Statutes; relating to the public safety personnel retirement system.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 38-844.05, Arizona Revised Statutes, is amended to read:
38-844.05. Deferred retirement option benefits and participation accounts
A. A deferred retirement option plan participation account is an account established within the system on behalf of each deferred retirement option plan participant. All benefits accrued pursuant to this article shall be accounted for in the deferred retirement option plan participation account. A deferred retirement option plan participant does not have a claim on the assets of the system with respect to the member's deferred retirement option plan participation account and assets shall not be set aside for any deferred retirement option plan participant that are separate from all other system assets.
B. All amounts credited to a member's deferred retirement option plan participation account are fully vested.
C. A member's deferred retirement option plan participation account shall be credited with the following:
1. An amount, credited monthly, that is computed in the same manner as a normal retirement benefit using the factors of credited service and average monthly benefit compensation in effect on the date of deferred retirement option plan participation.
2. An amount, credited monthly, that represents interest on the amount credited pursuant to paragraph 1 of this subsection at a rate equal to the assumed rate of return determined by the board, except that for a member who has less than twenty years of credited service on January 1, 2012 and who elects to participate in the deferred retirement option plan on or after January 1, 2012, the amount credited monthly is the amount that represents interest at a rate equal to the average annual return of the system over the period of years established by the board for use in the calculation of the actuarial value of assets for the previous year, but not to exceed the system's assumed investment rate of return but at least two per cent.
3. If applicable, employee contributions made pursuant to section 38‑844.06, subsection B.
D. The participant is not entitled to receive any amount prescribed by section 38‑856, 38‑856.02 or 38‑857 during the deferred retirement option plan participation period.
Sec. 2. Section 38-844.08, Arizona Revised Statutes, is amended to read:
38-844.08. Payment of deferred retirement option plan benefits
A. On the simultaneous termination of deferred retirement option plan participation and employment, a member is entitled to receive both all of the following:
1. The monthly retirement allowance in the amount determined pursuant to section 38‑845 that was credited monthly to the member's deferred retirement option plan participation account at the date of termination of deferred retirement option plan participation.
2. All amounts credited to the member's deferred retirement option plan participation account on the effective date of termination of deferred retirement option plan participation.
3. Interest on the amount credited pursuant to section 38‑844.05, subsection C, paragraph 3 at a rate equal to two per cent but only if the average annual return of the system over the period of years established by the board for use in the calculation of the actuarial value of assets is at least two per cent for the previous fiscal year.
B. The form of payment shall be a lump sum distribution. If allowed by the internal revenue service, the participant may elect to transfer the lump sum distribution to an eligible retirement plan or individual retirement account.
