Arizona Laws 38-764. Commencement of retirement; payment of retirement benefits; lump sum payments
A. Retirement is deemed to commence on a date elected by the member. That date shall not be earlier than the day following the date of termination of employment, the date ASRS receives the member’s completed retirement application or the date specified by the member pursuant to subsection I of this section.
Terms Used In Arizona Laws 38-764
- 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
- Effective date: means July 1, 1970, except with respect to employers and members whose contributions to ASRS commence thereafter, the effective date of their membership in ASRS is as specified in the applicable joinder agreement. See Arizona Laws 38-711
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Internal revenue code: means the United States internal revenue code of 1986, as amended. See Arizona Laws 38-711
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Normal retirement date: means the earliest of the following:
(a) For a member whose membership commenced before July 1, 2011:
(i) A member's sixty-fifth birthday. See Arizona Laws 38-711
- Retired member: means a member who is receiving retirement benefits pursuant to this article. See Arizona Laws 38-711
- State: means this state, including any department, office, board, commission, agency, institution or other instrumentality of this state. See Arizona Laws 38-711
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. All retirement benefits:
1. Are normally payable in monthly installments beginning on the commencement of retirement as prescribed in subsection A of this section.
2. Continue to and include the first day of the month in which death occurs or continue until the date of their cessation in accordance with any optional method of payment that may have been elected.
C. Except as provided in subsection D of this section, at the request of a retired member, a retired member’s guardian or a court appointed conservator, the board may pay any increase in retirement benefits or the entire retirement benefit in a lump sum payment based on the actuarial present value of the benefit or the increase in the benefit if the payment of the benefits would result in ineligibility, reduction or elimination of social service programs provided to the member by this state, its political subdivisions or the federal government.
D. The board may pay the entire retirement benefit in a lump sum pursuant to subsection C of this section only if continued membership in ASRS will result in additional requests for lump sum payments based on cost of living adjustments or the establishment of minimum benefit awards.
E. If any benefit that is payable as a series of periodic payments amounts to less than a threshold amount determined by the board, the board, in its sole discretion and based on uniform rules it establishes, may order the amount to be paid in a lump sum. A member who receives a lump sum payment pursuant to this subsection remains a member of ASRS and is eligible for the coverage provided pursuant to section 38-782 and the payment pursuant to section 38-783 but is not eligible for a benefit increase pursuant to section 38-767.
F. All distributions of retirement benefits to a member shall be distributed within the required distribution provisions of section 401(a)(9) of the internal revenue code and the regulations that are issued under that section by the United States secretary of the treasury as prescribed in section 38-775.
G. Notwithstanding subsection H of this section, a member may elect to cancel the effective date of retirement within thirty days of retirement or before the member’s receipt of retirement benefits, whichever is later.
H. A member may elect to make changes to a retirement application before the member’s retirement date. A member may exercise a onetime election to make changes to the retirement application within sixty days after the member’s retirement date. The member may not change the member’s retirement date, and any changes made to the retirement application are retroactive to the member’s retirement date.
I. A member who attains a normal retirement date may retire at any time without terminating employment if the member is employed for less than the hours required for active membership pursuant to section 38-711, paragraph 23, subdivision (b).