Arizona Laws 38-868. Contributions; member; employer; applicability of article
A. On or before June 30, 2017, a participant as defined in Section 38-865.01 may make an irrevocable election to opt out of the defined contribution plan established by this article, which shall be the participant’s election for the remainder of the participant’s employment with any employer under the system.
Terms Used In Arizona Laws 38-868
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Defined contribution plan: means the public safety personnel defined contribution retirement plan established pursuant to this article. See Arizona Laws 38-865
- 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.
- Participant: means :
(a) A member as defined in section 38-842, paragraph 31, subdivision (a), excluding subdivision (a), item (vi), who is one of the following:
(i) An employee who is hired on or after July 1, 2017, who makes the irrevocable election to participate solely in the defined contribution plan established pursuant to this article and who was not an active, an inactive or a retired member of the system or a member of the system with a disability on June 30, 2017. See Arizona Laws 38-865
- Pensionable compensation: means the amount of the participant's annual compensation that does not exceed the limitation specified in Section 38-843. See Arizona Laws 38-865
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- System: means the public safety personnel retirement system established by article 4 of this chapter. See Arizona Laws 38-865
B. Beginning July 1, 2017, a participant as defined in Section 38-865.01 in the defined contribution plan shall contribute three percent of the participant’s gross pensionable compensation by salary reduction that shall be deposited in the participant’s annuity account.
C. Each employer of a participant as defined in Section 38-865.01 shall annually make a contribution equal to the following percentages of the participant’s gross pensionable compensation:
1. For a participant that is hired in 2012, for fiscal years 2017-2018 through 2023-2024, four percent and three percent for each fiscal year thereafter.
2. For a participant that is hired in 2013, for fiscal years 2017-2018 through 2022-2023, four percent and three percent for each fiscal year thereafter.
3. For a participant that is hired in 2014, for fiscal years 2017-2018 through 2021-2022, four percent and three percent for each fiscal year thereafter.
4. For a participant that is hired in 2015, for fiscal years 2017-2018 through 2020-2021, four percent and three percent for each fiscal year thereafter.
5. For a participant that is hired in 2016, for fiscal years 2017-2018 through 2019-2020, four percent and three percent for each fiscal year thereafter.
6. For a participant that is hired on or after January 1, 2017 and before July 1, 2017, for fiscal year 2017-2018, four percent and three percent for each fiscal year thereafter.
D. If a participant as defined in Section 38-865.01 is subsequently covered by the federal old age and survivors insurance system, the participant and the participant’s employer may not make any contributions on the participant’s behalf pursuant to this section during the period the participant is covered by the federal old age and survivors insurance system. If at a later time the participant is not covered by the federal old age and survivors insurance system through an employer under the system, the participant and the participant’s employer shall again be required to contribute on behalf of the employee pursuant to this section.
E. All of the provisions of this article apply to a participant as defined in Section 38-865.01.
F. For a participant as defined in Section 38-865.01, an employer may choose to pay a portion of the participant’s contributions under this section in an amount of not more than the difference between the contribution rate specified under section 38-843 for employees hired on or after January 1, 2012 and before July 1, 2017 and for any employee hired before January 1, 2012.