Arizona Laws 38-894. Financial objective of the retirement plan; participating employer contributions
A. The financial objective of the retirement plan is to receive contributions each fiscal year which are sufficient to both:
Terms Used In Arizona Laws 38-894
- Board: means the board of trustees of the public safety personnel retirement system. See Arizona Laws 38-881
- Credited service: means credited service transferred to the retirement plan from another retirement system or plan for public employees of this state, plus those compensated periods of service as a member of the retirement plan for which member contributions are on deposit in the fund. See Arizona Laws 38-881
- Employer: means an agency or department of this state or a political subdivision of this state that has one or more employees in a designated position. See Arizona Laws 38-881
- 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.
- fiscal year: means the period beginning on July 1 of any year and ending on June 30 of the next succeeding year. See Arizona Laws 38-881
- Fund: means the corrections officer retirement plan fund. See Arizona Laws 38-881
- Participating employer: means an employer that the board has determined to have one or more employees in a designated position or a county, city, town or department of this state that has entered into a joinder agreement pursuant to section 38-902. See Arizona Laws 38-881
- plan: means the corrections officer retirement plan established by this article. See Arizona Laws 38-881
- Service: means employment rendered to a participating employer as an employee in a designated position. See Arizona Laws 38-881
1. Fund the actuarial cost of benefits likely to be paid on account of credited service earned by members during the fiscal year.
2. Fund the unfunded actuarial cost of benefits likely to be paid on account of credited service earned by members before the fiscal year over a period of not more than forty years. Contribution requirements shall be determined by an annual actuarial valuation using a generally recognized level per cent of payroll actuarial cost method.
B. The board may require an employer that proposes to become a participating employer after the plan has been in operation for more than one year to make supplemental contributions based on the excess of the actuarial costs associated with the proposed participation over the actuarial costs of the plan indicated by the last annual actuarial valuation of the plan. The amount of supplemental contributions shall be determined by actuarial valuation. The board may pay the cost of the actuarial valuation or may require the employer to pay the cost.
C. The board shall certify to each participating employer the amount of annual contribution needed to meet the financial objective and the participating employer shall appropriate and cause the contribution to be paid to the retirement plan.
D. Payment of contributions shall be made in accordance with the schedule adopted by the board. Payments not made in a timely manner are subject to an interest charge at rates established by the board.