Arizona Laws 38-722. Abandoned monies; disposition
A. Except as otherwise provided in this section, the trust fund established by section 38-712 is exempt from Title 44, Chapter 3.
Terms Used In Arizona Laws 38-722
- ASRS: means the Arizona state retirement system established by this article. See Arizona Laws 38-711
- 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 ASRS board established in section 38-713. See Arizona Laws 38-711
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Interest: means the assumed actuarial investment earnings rate approved by the board. See Arizona Laws 38-711
- Property: includes both real and personal property. See Arizona Laws 1-215
- Writing: includes printing. See Arizona Laws 1-215
B. Monies in the ASRS trust fund and the LTD trust fund established by Section 38-797.02 are presumed abandoned if the apparent owner, as defined in section 44-301, has not communicated in writing with ASRS and has not otherwise indicated an interest in the monies for the three year period following the required beginning date of distributions pursuant to section 38-775.
C. At the time monies are presumed abandoned pursuant to subsection B of this section, any other property right accrued or accruing to the owner as a result of the interest in those monies, and not previously presumed abandoned, is also presumed abandoned.
D. Interest ceases to accrue on the monies on the date the monies are presumed abandoned.
E. Before monies are presumed abandoned, ASRS shall attempt to contact the apparent owner in writing. If the apparent owner is a member, beginning five years before the apparent owner’s required beginning date of distributions pursuant to section 38-775 and for three years after that date, ASRS shall annually send a notice to the apparent owner notifying the apparent owner of the owner’s eligibility for a retirement benefit. If the apparent owner is a beneficiary, beginning in the calendar year containing the fifth anniversary of the member’s death and for three years, ASRS shall annually send a notice to the apparent owner notifying the apparent owner of the owner’s eligibility for a survivor benefit. If this notice is returned by the postal authority as undeliverable, ASRS shall make a good faith attempt to locate the apparent owner, including contacting any known beneficiary on record with ASRS, searching public databases to identify the address of the apparent owner or using the services of a third-party address verification service. If the good faith attempt to locate the apparent owner fails and the base amount of the unclaimed monies is three hundred dollars or more, ASRS may use the services of a people search service. A fee imposed by the people search service shall not be deducted from the member’s benefit and these expenditures are continuously appropriated and shall be paid from the administration account established pursuant to section 38-721 in the amount deemed necessary by the board.
F. If at any time an owner, as defined in section 44-301, establishes an entitlement in the monies, ASRS shall withdraw the monies from either the ASRS trust fund or the LTD trust fund, whichever is applicable, and pay the owner the monies or benefit to which the owner is entitled pursuant to this article or article 2.1 of this chapter, including interest at a rate determined by ASRS, if applicable.