Arizona Laws 38-861. Future benefit increases; payment; cost calculation; definition
A. Any future benefit increase adopted by the legislature or any participating employer for any member of the system shall be fully paid in the year of enactment of the benefit and may not be amortized over any period of years. A benefit for members hired before July 1, 2017 shall be paid by the employer and the cost of the benefit for members hired on or after July 1, 2017 shall be split equally between the employer and the member.
Terms Used In Arizona Laws 38-861
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Board: means the board of trustees of the system, who are the persons appointed to invest and operate the fund. See Arizona Laws 38-842
- 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 38-842
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- System: means the public safety personnel retirement system established by this article. See Arizona Laws 38-842
B. The plan actuary shall calculate the cost of the benefit increase using all of the following:
1. A discount rate equal to the ten-year treasury constant maturity rate for the fiscal year in which the benefit is enacted.
2. An expected rate of return on assets equal to the ten-year treasury constant maturity rate for the fiscal year in which the benefit is enacted.
3. A mortality table based on the most recent proposal from the retirement plans experience committee of the society of actuaries that is not older than the RP-2014 mortality table.
4. All other actuarial assumptions approved by the board for the most recent fiscal year valuation.
C. For the purposes of this section, "future benefit increase" includes any benefit increase that leads to a change in the present value of future benefits or a change to accrued liabilities.