Title 38 — Public Officers and Employees

In this article, unless the context otherwise requires: 1. "Commissioner of social security" includes any individual to whom the commissioner of social security has delegated any of the commissioner's functions under the social security act with respect to coverage under the act …

A. On behalf of this state the governor may enter into an agreement with the commissioner of social security, consistent with this article, for the purpose of extending the benefits of the federal old age and survivors insurance system to employees of this state or any political …

A. Each eligible political subdivision of this state may submit for approval by the state agency a plan for extending the benefits of title II of the social security act, in conformity with applicable provisions of the social security act, to employees of the eligible political s…

The state agency shall adopt rules that are not inconsistent with this article and that it finds necessary or appropriate for the efficient administration of the functions with which it is charged under this article.

The state agency may: 1. Conduct studies concerning the problem of old age and survivors insurance protection for employees and concerning the operation of agreements made and plans approved under this article. 2. Submit a report to the legislature at the beginning of each regula…

A. On request of the board of trustees of a retirement system established by this state, the governor may authorize a referendum. On request of the governing body of any political subdivision that has established a retirement system, the governor shall authorize a referendum. B. …

In this article, unless the context otherwise requires: 1. "Active member" means a member as defined in paragraph 23, subdivision (b) of this section who satisfies the eligibility criteria prescribed in section 38-727 and who is currently making member contributions as prescribed…

A. The primary intent of ASRS is to: 1. Provide an incentive in the recruitment and retention of employees of the highest possible quality. 2. Contribute toward providing a total compensation package that is generally equivalent to comparable employment in other public and privat…

A. The ASRS board is established consisting of the following nine members appointed by the governor pursuant to section 38-211: 1. Five members from among the members of ASRS to represent the members of ASRS as follows: (a) An educator. (b) An employee of a political subdivision.…

A. ASRS shall have the powers and privileges of a corporation, shall have an official seal and shall transact all business in the name "Arizona state retirement system", and in that name may sue and be sued. B. The board is responsible for supervising the administration of this a…

A. The board shall appoint a director. The director shall serve at the pleasure of the board. B. The director shall appoint a deputy director and assistant directors with the approval of the board. C. The director, under the supervision of the board, shall: 1. Administer this art…

In addition to any other requirements of this article or article 2.1, 7 or 8 of this chapter, an employer of a member shall: 1. Cooperate and collaborate with ASRS and follow all ASRS procedures to ensure the proper enrollment of members in the system. 2. Submit any reports, data…

A. The department of administration shall provide coverage pursuant to title 41, chapter 3.1, article 1 against all liability for acts or omissions of any nature by members of the board while acting in an authorized governmental or proprietary capacity and within the course and s…

A. A financial institution serving as an investment manager does not have a conflict of interest because it is also a depository in which ASRS monies are deposited. B. The board shall appoint and may remove multiple investment managers to invest and reinvest the assets of ASRS. T…

ASRS may not pay interest on any amount paid to a member, an alternate payee or an employer pursuant to this article unless specifically authorized by this article.

A. Exclusively for the purposes of this article, the board shall establish an ASRS depository that is separate and apart from all other public monies or funds of this state. The ASRS depository shall be a bank in which ASRS monies are deposited and collateralized as provided by l…

A. ASRS shall maintain an administration account consisting of all monies for administrative purposes. The following monies shall be deposited in the administration account: 1. All monies appropriated by the legislature to pay administrative expenses of ASRS. 2. All monies receiv…

A. Except as otherwise provided in this section, the trust fund established by section 38-712 is exempt from title 44, chapter 3. B. Monies in the ASRS trust fund and the LTD trust fund established by section 38-797.02 are presumed abandoned if the apparent owner, as defined in s…

A. A debtor who fails to pay any monies owed to ASRS is liable for all costs and expenses incurred by ASRS to collect the monies owed. ASRS may collect these expenses and costs at the time of collecting the monies owed to ASRS. B. If a debtor neglects or refuses to pay a debt owe…

B. A person who fails or refuses to surrender any property subject to levy, on request by ASRS, is liable in person and estate to this state in a sum equal to the value of the property not so surrendered, but not exceeding the amount of debt for the collection of which the levy h…

A. ASRS may enter into agreements with financial institutions that conduct business in this state to develop and operate a data match system to assist ASRS in the collection of monies owed. The data match system shall use automated data exchange procedures to the maximum extent p…

A. The following provisions apply to all employees hired on or after the effective date: 1. All employees and officers of this state and all officers and employees of political subdivisions establishing a retirement plan administered by the board pursuant to this article are subj…

A. The governing body of any political subdivision may adopt, by appropriate legislation, a supplemental retirement plan for employees and officers of the political subdivision. The supplemental retirement plan shall provide the same retirement benefits and require the same oblig…

A. On application the retirement service credits of an employee of a charter city that is not an employer under ASRS or an employee of an employer that is an employer under ASRS whose job functions are shifted by law from one employer jurisdiction to another shall be transferred …

A. All amounts deducted from a member's compensation as provided in section 38-736 and employer contributions required pursuant to section 38-737 shall be paid to ASRS for deposit in the ASRS depository. B. Each employer shall certify on each payroll the amount to be contributed …

A. Member contributions are required as a condition of employment and shall be made by payroll deductions. Member contributions shall begin simultaneously with membership in ASRS. Beginning July 1, 2011, member contributions are a percentage of a member's compensation equal to th…

A. Employer contributions shall be a percentage of compensation of all employees of the employers who meet the eligibility requirements contained in this article, excluding the compensation of those employees who are members of the defined contribution program administered by ASR…

A. If more than the correct amount of employer or member contributions is paid into ASRS by an employer through a mistake of fact, ASRS shall provide the employer with an employer credit against future contributions if the employer requests an employer credit or, if the request i…

A. A member shall not earn more than one year of credited service in any fiscal year. B. A member shall earn proportionate credited service for each month for which the member performs service and is compensated equal to the ratio that the month bears to the number of months in t…

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 cov…

A. A member whose membership commenced before July 1, 2011 and who leaves employment other than by retirement or death may elect to receive a return of the contributions as follows: 1. If the member has less than five years of credited service, ASRS shall disburse all of the memb…

A. ASRS shall return to active status an inactive member who terminates employment with an employer without terminating membership in ASRS and who later is reemployed by the same or another employer. B. On retirement, ASRS shall disburse benefits derived from service for all empl…

A. If an active member who received a return of contributions on termination of employment and by receipt of those contributions forfeited credited service earned on that employment, as provided in section 38-740, subsection A or B, is subsequently reemployed by an employer, the …

B. A member who elects to receive credit for service with the United States government, a state, territory, commonwealth, overseas possession or insular area of the United States or a political subdivision of a state, territory, commonwealth, overseas possession or insular area o…

A. A member may elect to be credited with service for retirement purposes for an officially granted leave of absence from employment without pay if all of the following apply: 1. At the time the absence was granted the member was an active member of ASRS or a member who was recei…

A. An active member of ASRS or a member who is receiving benefits pursuant to section 38-797.07 may purchase credited service in ASRS for active military service if all of the following apply: 1. The member was honorably separated from the military service. 2. The member submits …

A. Except as provided in subsection E, beginning on July 1, 2002, the annual compensation of each employee taken into account under ASRS for any fiscal year or for any other specified twelve consecutive month period shall not exceed two hundred thousand dollars. In determining be…

A. A member who purchases credited service pursuant to section 38-738, 38-742, 38-743, 38-744, 38-745 or 38-922 shall either: 1. Make payments directly to ASRS as provided in subsection H of this section. 2. Elect to have the member's employer make payments as provided in subsect…

A. If an employer pays contributions on behalf of any person who is not eligible by statute or rule for ASRS membership or pays contributions on compensation that is not eligible by statute or rule for ASRS contributions and either ASRS or a court determines that ASRS shall provi…

A. If a termination incentive program that is offered by an employer results in an actuarial unfunded liability to ASRS, the employer shall pay to ASRS the amount of the unfunded liability. ASRS shall determine the amount of the unfunded liability in consultation with its actuary…

B. If the assets transferred from ASRS are less than the cost of the benefits accrued relative to the credited service as calculated pursuant to section 38-922, subsection B, paragraph 2, and unless a law otherwise provides, the employee shall elect either to pay the difference t…

A. ASRS shall establish a separate fund for an employer, other than a charter school, that is no longer participating in ASRS as a result of any of the following: 1. The character of the employer changes from a public entity to a private entity. 2. An employer, other than this st…

A. ASRS shall make information concerning a member's account accessible to the member in written or electronic form. This information shall include the member's current account balance, contact information, beneficiary election, estimated retirement date and estimated benefit amo…

A. The director shall develop, implement and maintain an outreach education program for members of ASRS that is designed to provide basic information on retirement planning. B. The outreach education program prescribed in subsection A shall include at least the following: 1. Info…

A. After application on a form prescribed by the director, a member may retire on reaching the member's normal retirement date. Except as provided in section 13-713, a member's right to the member's normal retirement benefit as described in subsection B of this section is nonforf…

A. A member who has attained age fifty, who has terminated employment with all employers and who has five years of total credited service is eligible to elect, in a form and manner prescribed by the board, to receive a reduced retirement income. B. For a member whose membership i…

A. A member who is eligible for normal retirement benefits on the member's normal retirement date may elect to defer receiving retirement benefits. B. Notwithstanding this section, payment of a member's deferred benefits shall not commence later than the member's required beginni…

A. On retirement, members may elect an optional form of retirement benefit as provided in this section. B. The optional retirement benefits available under this section include the following: 1. Joint and survivor life annuity in a reduced amount payable to the retiring member du…

A. On the death of any active or inactive member before retirement, the designated beneficiary of the member shall be paid a survivor benefit equal to the sum of both of the following: 1. The member's contribution and interest and the employer's contribution and interest to the d…

A. Except as provided in subsection B of this section, if a member dies after distribution of retirement benefits commences, ASRS shall continue to distribute the remaining portion of retirement benefits within the required distribution provisions of section 401(a)(9) of the inte…