Arizona Laws 38-892. Internal revenue code section 414(h) pickup of member contributions
Each participating employer shall pick up the contributions required of members on account of compensation paid after the effective date specified in the resolution of the board activating the provisions of this section. The picked up contributions shall be treated as participating employer contributions for the purpose of tax treatment under the United States internal revenue code. The specified effective date shall not be before the date the retirement plan receives notification from the internal revenue service that pursuant to section 414(h) of the internal revenue code the member contributions picked up shall not be included in gross income for income tax purposes until the time that the picked up contributions are distributed by refund or pension payments. The participating employers shall pick up the member contributions from funds established and available in a retirement deduction account, which funds would otherwise have been designated as member contributions and paid to the retirement plan. Member contributions picked up pursuant to this section shall be treated for all other purposes, in the same manner and to the same extent, as member contributions made before the effective date.
Terms Used In Arizona Laws 38-892
- Board: means the board of trustees of the public safety personnel retirement system. See Arizona Laws 38-881
- Employer: means an agency or department of this state or a political subdivision of this state that has one or more employees in a designated position. See Arizona Laws 38-881
- Participating employer: means an employer that the board has determined to have one or more employees in a designated position or a county, city, town or department of this state that has entered into a joinder agreement pursuant to section 38-902. See Arizona Laws 38-881
- Pension: means a series of monthly payments by the retirement plan but does not include an annuity that is payable pursuant to section 38-911. See Arizona Laws 38-881
- plan: means the corrections officer retirement plan established by this article. See Arizona Laws 38-881
- Service: means employment rendered to a participating employer as an employee in a designated position. See Arizona Laws 38-881
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215