Arizona Laws 48-222. District retirement plans authorized; benefits provided
A. A district which is not participating in the Arizona state retirement system provided by Title 38, Chapter 5, Article 2, or the employees of which are not members of the Arizona state retirement system may, by appropriate action of a majority of its governing body, adopt a retirement plan for its employees.
Terms Used In Arizona Laws 48-222
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- District: means an irrigation district, drainage district, flood control district, agricultural improvement district, electrical district, or power district organized pursuant to the laws of this state. See Arizona Laws 48-221
- District contributions: means sums of money paid by a district to finance a retirement plan. See Arizona Laws 48-221
- Employee: means a person in the service of a district whose customary employment is for an average of not less than thirty hours a week and for twelve months a year. See Arizona Laws 48-221
- Participant: means an employee of a district who is eligible under the provisions of section 48-224 for participation in the retirement plan adopted by a district. See Arizona Laws 48-221
- Plan: means a retirement plan authorized by section 48-222. See Arizona Laws 48-221
- Prior service: means service for a district by any employee for any period not exceeding twenty-five years immediately prior to the adoption of a retirement plan. See Arizona Laws 48-221
- Termination of service: means the cessation of employment of an employee by a district, but service shall not be deemed terminated by reason of any military absence, or any leave of absence or furlough granted by the district. See Arizona Laws 48-221
B. Any such retirement plan may provide for such of the following benefits in such amounts and at such times as the governing body of a district may determine:
1. Retirement income or pensions for eligible district employees upon attaining age not less than sixty years payable in installments not more frequently than monthly, either from a trust fund and the income therefrom created by employees’ and district contributions or by the purchase of single premium annuity contracts with legal reserve life insurance companies authorized to transact business in Arizona in such amounts as the balance in the employees’ accounts on the books of the trust fund will provide.
2. The purchase by the district of a group annuity contract with a reserve life insurance company providing for retirement income upon attaining age not less than sixty years, for death benefits of a participant prior to the participant’s retirement, and for any of the other benefits mentioned in this section.
3. Payment of retirement pension or income upon an employee having a permanent and total disability to the extent to which the employee is prevented from engaging in the employee’s normal occupation with the district. The disability retirement income shall commence at such time as the plan adopted by the governing body of a district shall provide.
4. Termination of service withdrawal benefits after both the attainment of age fifty and five years of participation in the plan.
5. The establishment of nonforfeitable interests of various types in any trust fund or annuity contract upon termination of service after not less than five years of continuous participation in the plan, depending upon the period of continuous participation.
6. Prior service retirement income and benefits.
C. The governing body is authorized to adopt such other provisions in a plan as it may deem to be for the best interests of the participants and the district and which are actuarially sound and not in conflict with the provisions of this article.