HB 2337 — deferred retirement optional plan; reinstatement

Fifty-fifthHouse LegislatureEngrossed Governmentdeferred &retirement Electionsoptional Secondplan; Regular Session H.B.

2337reinstatement PROPOSEDState of Arizona House of Representatives Fifty-fifth Legislature Second Regular Session HOUSE OFBILL REPRESENTATIVES2337 AMENDMENTSAN TOACT H.B.AMENDING SECTIONS 38-844.02, 38-844.03 AND 38-844.05, ARIZONA REVISED STATUTES;

2337RELATING (Reference to printed bill) Page 2, line 41, after the second comma insert "FOR THE FIRST SIXTY MONTHS," Line 42, after the period insert "FOR THE REMAINING TWENTY-FOUR MONTHS, AT A RATE EQUAL TO THE ACTUALPUBLIC RATESAFETY OFPERSONNEL RETURN,RETIREMENT SMOOTHEDSYSTEM. OVER A PERIOD OF SEVEN YEARS, TO BE NOT LESS THAN ZERO PERCENT OR NOT MORE THAN NINE PERCENT." Line 44, strike "THE" insert "A RATE EQUAL TO THE ACTUAL";

after(TEXT "RETURN" insert ", SMOOTHED OVER A PERIOD OF SEVENBILL YEARS,BEGINS TOON BENEXT NOTPAGE) LESS- THANi ZERO- PERCENTH.B. OR NOT MORE THAN NINE PERCENT" Amend title to conform KEVIN PAYNE 2337PAYNE 02/07/2022 03:51 PM C:

MH2337 Be it enacted by the Legislature of the State of Arizona:

Section 1.

Section 38-844.02, Arizona Revised Statutes, is amended to read:

38-844.02.

Deferred retirement option plan;

purpose A.

A deferred retirement option plan is established for those employees who become members of the system before January 1, 2012 AND WHO MEET THE ELIGIBILITY REQUIREMENTS OF SECTION 38-844.03.

The purpose of the deferred retirement option plan is to add flexibility to the system and to provide members who elect to participate in the deferred retirement option plan access to a lump sum benefit in addition to their normal monthly retirement benefit on actual retirement.

B.

The board shall offer the deferred retirement option plan to members on a voluntary basis as an alternative method of benefit accrual under the system.

Sec.

2.

Section 38-844.03, Arizona Revised Statutes, is amended to read:

38-844.03.

Eligibility;

participation A.

Any member who is eligible for a normal pension pursuant to section 38-844, subsection A, who becomes a member of the system before January 1, 2012 and who has at least twenty years of credited service is eligible to participate in the deferred retirement option plan.

In addition, any member who is subject to section 38-858, subsection C is eligible to participate in the deferred retirement option plan retroactive to the member's twentieth year of credited service or on the day before the member began military service, whichever is later, if the member makes the election pursuant to this section on or before resuming employment with the member's employer.

B.

A member who elects to participate in the deferred retirement option plan shall voluntarily and irrevocably:

1.

FOR A MEMBER WHO BECAME A MEMBER OF THE SYSTEM BEFORE JANUARY 1, 2012, designate a period of participation that is not more than sixty EIGHTY-FOUR consecutive months.

FOR A MEMBER WHO BECAME A MEMBER OF THE SYSTEM ON OR AFTER JANUARY 1, 2012, DESIGNATE A PERIOD OF PARTICIPATION THAT IS NOT MORE THAN SIXTY CONSECUTIVE MONTHS.

2.

Beginning on the date the member elects to participate in the deferred retirement option plan, cease to accrue benefits under any other provision of this article.

The member's effective date of participation is the first day of the month following the date the member elects to participate.

3.

Have deferred retirement option plan benefits credited to a deferred retirement option plan participation account pursuant to section 38-844.05.

4.

Receive benefits from the system on termination of employment at the same time and in the same manner as otherwise prescribed in this article.

- 1 - H.B.

2337 5.

Agree to terminate employment on completion of the deferred retirement option plan participation period designated by the member on the appropriate deferred retirement option plan participation form.

C.

If a member fails to terminate employment on completion of the designated deferred retirement option plan participation period:

1.