A. The board may authorize a participating employer to transfer assets out of the prefunding plan if the asset transfer complies with subsection B of this section and all of the following:

Terms Used In Arizona Laws 38-936

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Board: means the board of trustees of the system. See Arizona Laws 38-931
  • Contract: A legal written agreement that becomes binding when signed.
  • Defined benefit pension: means the elected officials' retirement plan established by article 3 of this chapter, the public safety personnel retirement system established by article 4 of this chapter and the corrections officer retirement plan established by article 6 of this chapter. See Arizona Laws 38-931
  • Employer: means an employer as defined in section 38-801, 38-842 or 38-881. See Arizona Laws 38-931
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • 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
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • Prefunding plan: means the Arizona employers' pension prefunding plan established by this article. See Arizona Laws 38-931
  • Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
  • Required pension contributions: means an employer's unfunded liability and future required contributions under the applicable defined benefit pension, whether pertaining to a single year or multiple years. See Arizona Laws 38-931
  • System: means the public safety personnel retirement system. 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 section 38-937:

1. The prefunding plan assets shall be used exclusively for the purpose of paying required pension contributions and the administrative costs associated with the prefunding plan and may not be used for any other purpose.

2. A transfer of assets out of the prefunding plan shall be made solely for the purpose of transferring assets to the system to discharge the participating employer’s required pension contributions to the applicable defined benefit pension.

C. The prefunding plan assets and any transfer of assets out of the prefunding plan are not subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws or other process of law and are not unassignable.

D. Except for a participating employer to the extent expressly provided in subsection A of this section, an employee, member, beneficiary or other individual or person does not have any right, title or interest in the prefunding plan or any prefunding plan assets.

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