Arizona Laws 38-844.06. Additional deferred retirement option plan provisions
A. Beginning on the day after the date the member elects to participate in the deferred retirement option plan, employee and employer contributions pursuant to section 38-843 cease with respect to that member.
Terms Used In Arizona Laws 38-844.06
- Average monthly benefit compensation: means the result obtained by dividing the total compensation paid to an employee during a considered period by the number of months, including fractional months, in which such compensation was received. See Arizona Laws 38-842
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Board: means the board of trustees of the system, who are the persons appointed to invest and operate the fund. See Arizona Laws 38-842
- Credited service: means the member's total period of service before the member's effective date of participation, plus those compensated periods of the member's service thereafter for which the member made contributions to the fund. See Arizona Laws 38-842
- Eligible retirement plan: means any of the following that accepts a distributee's eligible rollover distribution:
(a) An individual retirement account described in section 408(a) of the internal revenue code. See Arizona Laws 38-842
- Employee: means any person who is employed by a participating employer and who is a member of an eligible group but does not include any persons compensated on a contractual or fee basis. See Arizona Laws 38-842
- System: means the public safety personnel retirement system established by this article. See Arizona Laws 38-842
- Trustee: A person or institution holding and administering property in trust.
B. A member who elects to participate in the deferred retirement option plan and who develops a disability during the period of deferred retirement option plan participation is eligible to apply for disability retirement benefits. If the application for disability retirement benefits is approved by the local board:
1. The disability retirement benefits shall be computed using the factors of credited service and average monthly benefit compensation in effect the day before the effective date of the member’s deferred retirement option plan participation.
2. All amounts in the member’s deferred retirement option plan participation account shall be distributed pursuant to Section 38-844.08.
C. If a member dies during the period of the member’s deferred retirement option plan participation, the entire amount in the member’s deferred retirement option plan participation account shall be transferred by the system‘s trustee directly to the trustee of the public safety personnel defined contribution retirement plan established pursuant to article 4.1 of this chapter and deposited in an account established on behalf of the deceased member. On deposit of the monies in the account, the monies shall be made immediately available to the member’s beneficiary to either withdraw all or any portion of the monies or directly transfer all or any portion of the monies to an eligible retirement plan in accordance with section 401(a)(31) of the internal revenue code.