Arizona Laws 38-885. Normal retirement; conditions and pension
A. A member may retire if the member:
Terms Used In Arizona Laws 38-885
- Average monthly salary: means :
(a) For an employee who becomes a member of the plan:
(i) Before January 1, 2012, one-thirty-sixth of the aggregate amount of salary that is paid a member by a participating employer during a period of thirty-six consecutive months of service in which the member received the highest salary within the last one hundred twenty months of service. 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
- Employee: means a person employed by a participating employer in a designated position. See Arizona Laws 38-881
- Normal retirement date: means :
(a) For an employee who becomes a member of the plan before January 1, 2012, the first day of the calendar month immediately following the employee's completion of twenty years of service or, in the case of a dispatcher, twenty-five years of service, the employee's sixty-second birthday and completion of ten years of service or the month in which the sum of the employee's age and years of credited service equals eighty. See Arizona Laws 38-881
- Pension: means a series of monthly payments by the retirement plan but does not include an annuity that is payable pursuant to section 38-911. See Arizona Laws 38-881
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- plan: means the corrections officer retirement plan established by this article. See Arizona Laws 38-881
- Salary: means the base salary, shift differential pay, military differential wage pay and holiday pay paid a member for personal services rendered in a designated position to a participating employer on a regular monthly, semimonthly or biweekly payroll basis. 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. Files a written application for normal retirement with the plan in the form prescribed by the plan.
2. Ceases to be an employee before the date of retirement.
3. Meets one of the age and service requirements for normal retirement prescribed in subsection B, D or F of this section.
B. A member who becomes a member of the plan before January 1, 2012 is eligible for a normal retirement pension if the member satisfies one of the following requirements:
1. Is at least sixty-two years of age and has ten or more years of service.
2. Has twenty or more years of service or, in the case of a dispatcher, twenty-five or more years of service.
3. The sum of the member’s age and years of credited service equals at least eighty.
C. A member who meets the requirements for a normal retirement pension pursuant to subsection B of this section and who has twenty years or twenty-five years, as applicable, of credited service is entitled to receive a pension that equals fifty percent of the member’s average monthly salary, except that:
1. If the member retires with more than twenty years of credited service the foregoing amount shall be increased by a monthly amount equal to two percent of the member’s average monthly salary multiplied by the number of the member’s years of credited service in excess of twenty years, with pro rata increase for any fractional years, except that if a member retires with twenty-five or more years of credited service the foregoing amount shall be increased by a monthly amount equal to two and one-half percent of the member’s average monthly salary multiplied by the number of the member’s years of credited service in excess of twenty years, with pro rata increase for any fractional year.
2. If the member retires pursuant to subsection B of this section but has less than twenty years of credited service, the member is entitled to receive a pension equal to the product of:
(a) Two and one-half percent of the member’s average monthly salary.
(b) The member’s credited service.
D. A person who becomes a member of the plan on or after January 1, 2012 and before July 1, 2018 is eligible for a normal retirement pension if the person satisfies one of the following requirements:
1. Is at least sixty-two years of age and has ten or more years of service.
2. Is at least fifty-two and one-half years of age and has twenty-five or more years of service.
E. A person who meets the requirements for a normal retirement pension pursuant to subsection D of this section and who has twenty-five years of credited service is entitled to receive a pension that equals sixty-two and one-half percent of the member’s average monthly salary, except that:
1. If the person retires with more than twenty-five years of credited service the foregoing amount shall be increased by a monthly amount equal to two and one-half percent of the member’s average monthly salary multiplied by the number of the member’s years of credited service in excess of twenty-five years, with pro rata increase for any fractional year.
2. If the person retires pursuant to subsection D of this section but has less than twenty-five years of credited service, the person is entitled to receive a pension equal to the product of:
(a) Two and one-half percent of the member’s average monthly salary.
(b) The member’s credited service.
F. A member who becomes a member of the plan on or after July 1, 2018 is eligible for a normal retirement pension if the member is at least fifty-five years of age and has ten or more years of credited service. A person who becomes a member of the plan on or after July 1, 2018 and who retires on or after the member’s normal retirement date shall receive a monthly amount equal to the member’s average monthly salary multiplied by the number of whole and fractional years of credited service multiplied by the following:
1. 1.25 percent if the member has at least ten years of credited service but less than fifteen years of credited service.
2. 1.50 percent if the member has at least fifteen years of credited service but less than twenty years of credited service.
3. 1.75 percent if the member has at least twenty years of credited service but less than twenty-two years of credited service.
4. 2.00 percent if the member has at least twenty-two years of credited service but less than twenty-five years of credited service.
5. 2.25 percent if the member has at least twenty-five years of credited service.
G. In no case shall the amount of a member’s pension exceed eighty percent of the member’s average monthly salary. Such limitation does not preclude cost-of-living increases granted by the legislature.