Arizona Laws 38-797.06. Contribution rate; annual report
A. The board shall select an actuary to determine required employer contributions on an annual basis. The actuary shall be a fellow of the society of actuaries.
Terms Used In Arizona Laws 38-797.06
- ASRS: means the Arizona state retirement system established by article 2 of this chapter. See Arizona Laws 38-797
- Board: means the ASRS board established pursuant to section 38-713. See Arizona Laws 38-797
- Employer contributions: means all amounts paid into the LTD program by an employer. See Arizona Laws 38-797
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- LTD program: means the long-term disability program established by this article. See Arizona Laws 38-797
B. Employer contributions shall be a percentage of compensation of all employees of the employers who meet the eligibility requirements of article 2 of this chapter, as the ASRS actuary determines pursuant to this section. The actuary shall make this determination in an annual valuation performed as of June 30. The valuation as of June 30 of a calendar year shall determine the percentage to be applied to compensation for the fiscal year beginning July 1 of the following calendar year. The actuary shall determine the total employer contribution using an actuarial cost method consistent with generally accepted actuarial standards. The total employer contributions shall be equal to the employer normal cost plus the amount required to amortize the past service funding requirement over a period consistent with generally accepted actuarial standards.
C. All contributions made by the employer and allocated to the LTD trust fund established by Section 38-797.02 are irrevocable and shall be used as benefits under this article or to pay expenses of the LTD program.
D. ASRS shall provide a preliminary report on or before November 30 of the valuation year and a final report on or before January 15 of the following year to the governor, the speaker of the house of representatives and the president of the senate on the contribution rate for the ensuing fiscal year.