Bill Text: AZ HB2104 | 2016 | Fifty-second Legislature 2nd Regular | Chaptered
Bill Title: ASRS; retention of credited service
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-05-17 - Chapter 320 E [HB2104 Detail]
Download: Arizona-2016-HB2104-Chaptered.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fifty-second Legislature Second Regular Session 2016
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CHAPTER 320
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HOUSE BILL 2104 |
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AN ACT
amending title 38, chapter 5, article 2, arizona revised statutes, by adding section 38‑739.01; amending sections 38-766.01 and 38-766.02, 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. Title 38, chapter 5, article 2, Arizona Revised Statutes, is amended by adding section 38‑739.01, to read:
38‑739.01. Credited service retention
Consistent with the compliance statement issued by the United States internal revenue service, an employee who is employed with an ASRS employer in a position that was exempt from ASRS membership because the position was not included in agreements providing for the employee's coverage under the federal old‑age and survivors insurance system but on whose behalf the employer has remitted ASRS contributions shall retain credited service for the period of employment for which the employer remitted ASRS contributions on the employee's behalf.
Sec. 2. Section 38-766.01, Arizona Revised Statutes, is amended to read:
38-766.01. Retired members; return to work
A. Notwithstanding section 38‑766, at a retired member's election, a retired member may return to work and still be eligible to receive retirement benefits if all of the following requirements are satisfied:
1. The retired member has attained the member's normal retirement age.
2. The retired member terminated direct employment with an employer at least three hundred sixty‑five consecutive days before returning to work.
3. If the retired member returns to work as a teacher, the retired member's employment is not subject to the requirements prescribed in sections 15‑536, 15‑538, 15‑538.01 and 15‑539 through 15‑543.
B. Notwithstanding section 38‑766 and subsection A of this section, at a retired member's election, a retired member may return to work as a state elected official who is subject to term limits and still be eligible to receive retirement benefits.
B. C. A retired member's election to return to work under this section is irrevocable for the remainder of the retired member's employment for which the retiree made the election.
C. D. The retired member shall acknowledge this section in writing and file the acknowledgement with the employer within thirty days of after returning to work.
D. E. An employer of a retired member who returns to work pursuant to this section shall not pay contributions on behalf of the retired member pursuant to section 38‑736, 38‑737 or 38‑797.05.
E. F. A retired member who returns to work pursuant to 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.
Sec. 3. Section 38-766.02, Arizona Revised Statutes, is amended to read:
38-766.02. Retired members; return to work; employer contribution payments; definitions
A. Notwithstanding section 38‑766.01, subsection D E, beginning July 1, 2012, an employer shall pay contributions at an alternate contribution rate on behalf of a retired member who returns to work in any capacity in a position ordinarily filled by an employee of the employer. This subsection applies to a retired member who has reached a normal retirement age or a retired member who retired under section 38‑758 if the retired member's retirement benefit has not been suspended pursuant to section 38‑766.
B. The ASRS actuary shall determine the alternate contribution rate in an annual valuation performed as of June 30. For the fiscal year beginning on July 1 of the following calendar year, the valuation shall determine the percentage to be applied to the compensation, gross salary or contract fee of a retired member who meets the requirements of this section.
C. The alternate contribution rate shall not be less than two per cent percent in any fiscal year. The alternate contribution rate is equal to the lesser of:
1. The employer contribution rate established by the ASRS actuary pursuant to section 38‑737 plus the employer contribution rate established by the ASRS actuary pursuant to section 38‑797.06.
2. The total past service funding requirement rate established by the ASRS actuary pursuant to section 38‑737 plus the total past service funding requirement rate established by the ASRS actuary pursuant to section 38‑797.06.
D. ASRS shall determine the schedule and method of payment of the alternate contribution rate. Subject to section 38-738, subsection A, all contributions made by the employer and allocated to the fund established by section 38‑712 are irrevocable and shall be used as benefits under this article or to pay the expenses of ASRS. Payments made pursuant to this section by employers become delinquent after the due date prescribed in the board's rules and thereafter shall be increased by interest from and after that date until payment is received by ASRS. ASRS shall charge interest on the delinquent payments as prescribed in section 38‑711. ASRS may recover delinquent payments due under this section, together with interest charges as provided in this section, by action in a court of competent jurisdiction against an employer liable for payments or, at the request of the director, ASRS may deduct the delinquent payments and interest charges from any other monies, including excise revenue taxes, payable to the employer by any department or agency of this state.
E. An employer of a retired member shall submit any reports, data, paperwork or materials that are requested by ASRS and that are necessary to determine the compensation, gross salary or contract fee associated with a retired member who returns to work or to determine the function, utilization, efficacy or operation of the return to work program.
F. For the purposes of this section:
1. "Contract fee" means the gross amount paid to a retired member as an independent contractor minus an amount, not to exceed ten per cent, for an administrative fee.
2. "Gross salary" means the gross amount paid to a retired member by a leasing company as salary or wages, including amounts that are subject to deferred compensation or tax shelter agreements, for services rendered or that would have been paid to the retired member except for the member's election or a legal requirement that all or part of the gross amount be used for other purposes.
Sec. 4. Retroactivity
Sections 38‑766.01 and 38‑766.02, Arizona Revised Statutes, as amended by this act, apply retroactively to from and after June 30, 2015.
Sec. 5. Emergency
This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.
APPROVED BY THE GOVERNOR MAY 17, 2016.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 18, 2016.
