38-936. Transfer of assets out of the prefunding plan; requirements
239 words·~1 min read·
/az/title-38/38-936A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The board may authorize a participating employer to transfer assets out of the prefunding plan if the asset transfer complies with subsection B of this section and all of the following:
1. The transfer satisfies the terms of the contract between the governing body of the participating employer and the board.
2. The transfer satisfies the requirements under the applicable governmental accounting standards.
3. The transfer does not jeopardize the tax-exempt status of the prefunding plan's income.
B. Except as otherwise provided in section 38-937:
1. The prefunding plan assets shall be used exclusively for the purpose of paying required pension contributions and the administrative costs associated with the prefunding plan and may not be used for any other purpose.
2. A transfer of assets out of the prefunding plan shall be made solely for the purpose of transferring assets to the system to discharge the participating employer's required pension contributions to the applicable defined benefit pension.
C. The prefunding plan assets and any transfer of assets out of the prefunding plan are not subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws or other process of law and are not unassignable.
D. Except for a participating employer to the extent expressly provided in subsection A of this section, an employee, member, beneficiary or other individual or person does not have any right, title or interest in the prefunding plan or any prefunding plan assets.