Arizona Laws 38-808. Pension payments; computation of amounts; termination
A. Plan retirement commences on the first day of the month following the date of the member’s retirement or death. Pension payments shall be received on or about the first day of the month next following the member’s plan retirement. The last pension payment shall be made as of the last day of the month in which the death of the retired member or the surviving spouse or minor children occurs. Pension payments shall not be made in advance.
Terms Used In Arizona Laws 38-808
- Accumulated contributions: means the sum of all member contributions deducted from the member's salary pursuant to section 38-810, subsection A plus the amount transferred to the fund on behalf of the member plus the amount deposited in the fund pursuant to section 38-816. See Arizona Laws 38-801
- 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
- Board: means the board of trustees of the system. See Arizona Laws 38-801
- Credited service: means the number of whole and fractional years of a member's service as an elected official after the elected official's effective date of participation for which member and employer contributions are on deposit with the fund, plus credited service transferred to the plan from another retirement system or plan for public employees of this state, plus service as an elected official before the elected official's effective date of participation that is being funded pursuant to a joinder agreement pursuant to section 38-815 or service that was redeemed pursuant to section 38-816. See Arizona Laws 38-801
- Minor: means a person under eighteen years of age. See Arizona Laws 1-215
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Pension: means a series of monthly payments to a person who is entitled to receive benefits under the plan. See Arizona Laws 38-801
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Plan: means the elected officials' retirement plan. See Arizona Laws 38-801
- Retired member: means a person who is being paid a pension based on the person's credited service as a member of the plan. See Arizona Laws 38-801
- Writing: includes printing. See Arizona Laws 1-215
B. For a member who becomes a member of the plan before January 1, 2012, the monthly pension shall be equal to one-twelfth of the following amount:
1. Four percent of the member’s average yearly salary multiplied by the member’s credited service, not to exceed eighty percent of the member’s average yearly salary. This amount shall be reduced if the member takes early retirement pursuant to section 38-805, subsection C. The amount of reduction is three-twelfths of one percent for each month the retired member’s early retirement age precedes the member’s normal retirement age pursuant to section 38-805, subsection A, except that the reduction shall not be more than thirty percent.
2. A member who meets the requirements for a disability retirement pension shall receive a disability pension equal to four percent of the member’s average yearly salary multiplied by twenty years of credited service if the member has ten or more years of credited service, four percent of the member’s average yearly salary multiplied by ten years of credited service if the member has five or more years of credited service but fewer than ten years of credited service or four percent of the member’s average yearly salary multiplied by five years of credited service if the member has fewer than five years of credited service.
C. The monthly pension of a member who becomes a member of the plan on or after January 1, 2012 shall be equal to one-twelfth of the following amount:
1. Three percent of the member’s average yearly salary multiplied by the member’s credited service, not to exceed seventy-five percent of the member’s average yearly salary.
2. A member who meets the requirements for a disability retirement pension shall receive a disability pension equal to three percent of the member’s average yearly salary multiplied by twenty-five years of credited service if the member has ten or more years of credited service, three percent of the member’s average yearly salary multiplied by twelve and one-half years of credited service if the member has five or more years of credited service but fewer than ten years of credited service or three percent of the member’s average yearly salary multiplied by 6.25 years of credited service if the member has fewer than five years of credited service.
D. The plan shall make payments pursuant to section 401(a)(9) of the internal revenue code and the regulations that are issued under that section. Notwithstanding any other provision of this plan, beginning January 1, 1987, payment of benefits to a member shall commence not later than April 1 of the calendar year following the later of:
1. The calendar year in which the member attains seventy-two years of age.
2. The date the member terminates employment.
E. If all pension payments terminate before an amount equal to the member’s accumulated contributions has been paid, the difference between the member’s accumulated contributions and the aggregate amount of pension payments shall be paid to the person or persons and in such shares as designated by the retired member in writing and filed with the board. If the designated person or persons do not survive the retired member, the difference shall be paid to the estate of the retired member.