38-846.02. Termination of membership

510 words·~2 min read·/az/title-38/38-846-02

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

A. On termination of employment for any reason other than death or retirement, within twenty days after filing a completed application with the board, a member who becomes a member of the system before January 1, 2012 is entitled to receive the following amounts, less any benefit payments the member has received or any amount the member may owe to the system:

1. If the member has less than five years of credited service with the system, the member may withdraw the member's accumulated contributions from the system.

2. If the member has five or more years of credited service with the system, the member may withdraw the member's accumulated contributions plus an amount equal to the amount determined as follows:

(a)5.0 to 5.9 years of credited service, twenty-five percent of all member contributions deducted from the member's salary pursuant to section 38-843, subsection C.

(b)6.0 to 6.9 years of credited service, forty percent of all member contributions deducted from the member's salary pursuant to section 38-843, subsection C.

(c)7.0 to 7.9 years of credited service, fifty-five percent of all member contributions deducted from the member's salary pursuant to section 38-843, subsection C.

(d)8.0 to 8.9 years of credited service, seventy percent of all member contributions deducted from the member's salary pursuant to section 38-843, subsection C.

(e)9.0 to 9.9 years of credited service, eighty-five percent of all member contributions deducted from the member's salary pursuant to section 38-843, subsection C.

(f)10.0 or more years of credited service, one hundred percent of all member contributions deducted from the member's salary pursuant to section 38-843, subsection C.

B. If a member who becomes a member of the system before January 1, 2012 has more than ten years of credited service with the system, leaves the monies prescribed in subsection A of this section on account with the system for more than thirty days after termination of employment and after that time period requests a refund of those monies, the member is entitled to receive the amount prescribed in subsection A of this section plus interest at a rate determined by the board for each year computed from and after the member's termination of employment.

C. On termination of employment for any reason other than death or retirement, within twenty days after filing a completed application with the board, a member who becomes a member of the system on or after January 1, 2012 is entitled to receive a lump sum payment equal to the member's accumulated contribution plus interest at a rate determined by the board as of the date of termination, less any benefit payments the member has received as of the date of termination or any amount the member may owe to the system.

D. A member who withdraws the amount prescribed in subsection A, B or C of this section from the system or who elects a transfer pursuant to section 38-846.06 forfeits all rights to benefits under the system and rights to rehearing and appeal, except as provided in section 38-849.