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REFERENCE TITLE: ASRS; return to work |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HB 2390 |
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Introduced by Representative Boone
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AN ACT
amending section 38‑766.01, Arizona Revised Statutes; making an Appropriation; 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 38-766.01, Arizona Revised Statutes, is amended to read:
38-766.01. Retired members; return to work; employer contribution payments
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 employment at least twelve consecutive months 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. 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. The retired member shall acknowledge this section in writing and file the acknowledgement with the employer within thirty days of returning to work.
D. 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. 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.
F. Notwithstanding subsection D of this section, beginning July 1, 2011, 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.
G. The ASRS actuary shall make the determination of the alternate contribution rate in an annual valuation performed as of June 30. The valuation as of June 30 of a calendar year shall determine the percentage to be applied to the compensation, leasing fee or contract fee of a retired member who meets the requirements of subsection F of this section for the fiscal year beginning on July 1 of the following calendar year. The alternate contribution rate is equal to the greater of two per cent or two times the past service funding requirement rate established by the ASRS actuary pursuant to section 38-737 plus the past service funding requirement rate established by the ASRS actuary pursuant to section 38-797.06. An actuary who is selected by the board and who is a fellow of the society of actuaries shall determine the alternate contribution rate on an annual basis.
H. ASRS shall determine the schedule and method of payment of the alternate contributions. 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. ASRS may recover delinquent payments due under this subsection, together with interest charges as provided in this subsection, by action in a court of competent jurisdiction against a political subdivision 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 political subdivision by any department or agency of this state.
I. 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 of or fees associated with a retired member who returns to work or to determine the use of the return to work program.
Sec. 2. Appropriation; Arizona state retirement system; exemption
A. The sum of $150,000 is appropriated from the Arizona state retirement system administration account fund in fiscal year 2010-2011 to the Arizona state retirement system for the administrative implementation of this act.
B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.