Arizona Laws 38-742. Reinstatement
A. If an active member who received a return of contributions on termination of employment and by receipt of those contributions forfeited credited service earned on that employment, as provided in section 38-740, subsection A or B, is subsequently reemployed by an employer, the member’s service shall be credited only from the date the member’s most recent reemployment period commenced.
Terms Used In Arizona Laws 38-742
- Active member: means a member as defined in paragraph 23, subdivision (b) of this section who satisfies the eligibility criteria prescribed in section 38-727 and who is currently making member contributions as prescribed in section 38-736. See Arizona Laws 38-711
- ASRS: means the Arizona state retirement system established by this article. See Arizona Laws 38-711
- Board: means the ASRS board established in section 38-713. See Arizona Laws 38-711
- Credited service: means , subject to section 38-739, the number of years standing to the member's credit on the books of ASRS during which the member made the required contributions. See Arizona Laws 38-711
- Employer: means :
(a) This state. See Arizona Laws 38-711
- Interest: means the assumed actuarial investment earnings rate approved by the board. See Arizona Laws 38-711
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
B. Notwithstanding subsection A of this section, the member may redeposit the amount of the contributions the ASRS paid at the time of the member’s separation from service, with interest on that amount to the date of redeposit at the interest rate assumption approved by the board for actuarial equivalency. On satisfaction of this obligation, the member’s service credits acquired by the previous employment shall be reinstated. The member is subject to the benefits and duties in effect at the time of the member’s most recent reemployment except as provided in section 38-711, paragraph 5, subdivision (a). If a member redeposits less than the amount required under this subsection, ASRS shall proportionately reduce the member’s reinstated service credits.
C. A member who is receiving benefits pursuant to Section 38-797.07 and who received a return of contributions on termination of employment and by receipt of those contributions forfeited credited service earned on that employment, as provided in section 38-740, subsection A or B, may redeposit the amount of the contributions the ASRS paid at the time of the member’s previous separation from service, with interest on that amount to the date of redeposit at the interest rate assumption approved by the board for actuarial equivalency. On redeposit of the contributions and interest, the member’s service credits acquired by the previous employment shall be reinstated. The member is subject to the benefits and duties in effect at the time of the member’s most recent reemployment except as provided in section 38-711, paragraph 5, subdivision (a). If a member redeposits less than the amount required under this subsection, ASRS shall proportionately reduce the member’s reinstated service credits.