38-750. Transfers out of the system

661 words·~3 min read·/az/title-38/38-750

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. If an employee has made an irrevocable election pursuant to section 38-747, subsection B or D and transfers participation to another defined benefit retirement system or plan of this state without a termination of employment, within ninety days after the date of the transfer, ASRS shall transfer to the subsequent defined benefit retirement system or plan the amount the employee paid for the purchase of the credited service plus interest as determined by ASRS.

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 to the subsequent defined benefit retirement system or plan or accept a reduced amount of service credits. If the employee elects to pay the difference, the amount paid shall be added to the employee's accumulated contribution account balance.

If the employee elects to accept a reduced amount of service credits, the amount of service credits granted shall be equal to the amount of service credits purchased multiplied by the ratio of the amount of assets transferred to the amount calculated pursuant to section 38-922, subsection B, paragraph 2.

C. The transferred employee and the employer shall complete the terms of the irrevocable election by making payments to ASRS.

D. If the employee is given an election to transfer to another defined benefit retirement system or plan of this state or to remain with the employee's current retirement system, on termination of employment the employee shall elect to have ASRS:

1. Promptly transfer to the subsequent defined benefit retirement system or plan the principal amount paid by the employee for the purchase of credited service plus interest as determined by ASRS. If an unfunded liability is created, subsection B of this section applies. If the employee fails to elect to have the assets transferred within thirty days after termination of employment, the employee is deemed to have made an election as prescribed in paragraph 2.

2. On written request by the employee, promptly return to the employee the principal amount paid by the employee for the purchase of credited service plus interest as determined by ASRS. If no application is received by ASRS within sixty days after termination of employment, ASRS shall issue the payment directly to the employee.

E. If the employee is not given an election to transfer to another defined benefit retirement system or plan of this state or to remain with the employee's current retirement system, after termination of employment the employee may elect within thirty days of termination of employment to have ASRS promptly transfer to the subsequent defined benefit retirement system or plan the principal amount paid by the employee for the purchase of credited service plus interest as determined by ASRS. If an unfunded liability is created, subsection B of this section applies. If the employee fails to make the election under this subsection, ASRS shall deem the employee as an inactive member of ASRS.

F. If an employee is given an election to transfer to another defined benefit retirement system or plan of this state or to remain with the employee's current retirement system and the employee is receiving a benefit pursuant to this article based on the employee's own service or article 2.1 of this chapter, the employee is eligible to transfer to the retirement system or plan, but the election to transfer terminates the benefit from ASRS on the effective date of the transfer.

G. If an employee is not given an election to transfer to another defined benefit retirement system or plan of this state or to remain with the employee's current retirement system and the employee is receiving a benefit pursuant to this article based on the employee's own service or article 2.1 of this chapter, the employee is not eligible to transfer to another retirement system or plan.