A. Beginning July 1, 2017, the discount rate specified in subsection B of this section applies to service purchases or transfers of service credits to the system pursuant to the following sections:

Terms Used In Arizona Laws 38-862

  • 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
  • Service: means the last period of continuous employment of an employee by the employers before the employee's retirement, except that if such period includes employment during which the employee would not have qualified as a member had the system then been effective, such as employment as a volunteer firefighter, then only twenty-five percent of such noncovered employment shall be considered as service. See Arizona Laws 38-842
  • System: means the public safety personnel retirement system established by this article. See Arizona Laws 38-842

1. Section 38-849, subsection D.

2. Section 38-853.01, subsection C.

3. Section 38-858, subsection A or B.

4. Sections 38-921, 38-922, 38-923 and 38-924.

B. For members enrolled in the system:

1. Before July 1, 2017, the discount rate is the assumed rate of return that is prescribed by the board.

2. On or after July 1, 2017, the discount rate is an amount equal to the lesser of the assumed rate of return that is prescribed by the board or an amount equal to the yield on a ten-year treasury note as of March 1 that is published by the federal reserve board plus two percent. The discount rate is effective beginning in the next fiscal year, and the board shall recalculate the rate each year.

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