A. The board may authorize a participating employer to transfer monies into the prefunding plan. A transfer of monies into the prefunding plan shall comply with all of the following:

Terms Used In Arizona Laws 38-935

  • Board: means the board of trustees of the system. See Arizona Laws 38-931
  • Contract: A legal written agreement that becomes binding when signed.
  • Employer: means an employer as defined in section 38-801, 38-842 or 38-881. See Arizona Laws 38-931
  • Participating employer: means an employer that is authorized and has elected to participate in the prefunding plan and whose governing body has entered into a contract with the board as provided in this article. See Arizona Laws 38-931
  • Prefunding plan: means the Arizona employers' pension prefunding plan established by this article. See Arizona Laws 38-931

1. The transfer satisfies the terms of the contract between the governing body of the participating employer and the board.

2. The transfer satisfies the requirements under the applicable governmental accounting standards.

3. The transfer does not jeopardize the tax-exempt status of the prefunding plan’s income.

B. Except as otherwise provided in this section and sections 38-936 and 38-937, monies transferred by a participating employer to the prefunding plan pursuant to subsection A of this section are irrevocable and may not be refused by the board or refunded or returned to the participating employer making the transfer.