Arizona Laws 38-812. Maximum annual pension; limitations; definition
A. The maximum annual pension for a limitation year shall not exceed the following:
Terms Used In Arizona Laws 38-812
- Average yearly salary: means the result obtained by dividing the total salary paid to an employee during a considered period by the number of years, including fractional years, in which the salary was received. See Arizona Laws 38-801
- Pension: means a series of monthly payments to a person who is entitled to receive benefits under the plan. See Arizona Laws 38-801
- Plan: means the elected officials' retirement plan. See Arizona Laws 38-801
1. For limitation years beginning before 1995, the lesser of ninety thousand dollars, as indexed for inflation, or one hundred per cent of the member’s average yearly salary.
2. For limitation years beginning in 1995 and ending before 2002, ninety thousand dollars, as indexed for inflation.
3. For limitation years ending in and after 2002, one hundred sixty thousand dollars, as indexed for inflation.
B. The limitations prescribed in subsection A shall be determined under section 415 of the internal revenue code and the regulations that are then in effect under that section.
C. Notwithstanding this section, the pension payable under this plan may be reduced to the extent necessary, as determined by the plan, to prevent disqualification of the plan under section 415 of the internal revenue code, which imposes additional limitations on the pension payable to members who also may be participating in another tax qualified pension plan or other plan of this state. The plan shall advise affected members of any additional limitation of their pension required by this section.
D. For the purposes of this section, "limitation year" means the plan’s fiscal year.