Arizona Laws 38-937. Termination of employer’s participation; prefunding plan termination
A. The board may terminate the participation of a participating employer in the prefunding plan if any of the following applies:
Terms Used In Arizona Laws 38-937
- 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. 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
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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
- 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 board determines that all obligations of a participating employer to pay required pension contributions in accordance with the terms of the applicable defined pension plan of the participating employer have been satisfied in full by payment or by defeasance with no remaining risk regarding the amounts to be paid or the value of the assets held in the prefunding plan.
2. A participating employer elects to cease to participate in the prefunding plan.
3. The board finds that the participating employer has failed to satisfy the terms and conditions required by this article, by board rules or by the contract between the governing body of the participating employer and the board.
4. The prefunding plan is terminated by the board or the prefunding plan otherwise terminates.
B. If the board terminates the participation of a participating employer in the prefunding plan as described in subsection A, paragraph 1, 2 or 3 of this section, any assets attributable to that participating employer’s transfers into the prefunding plan, including any earnings on such assets, after the payment of any obligation of that participating employer owed to the prefunding plan for reasonable administrative costs, shall be transferred to the system to pay the participating employer’s required pension contributions under the applicable defined benefit pension. Any remaining monies in excess of the amount necessary to satisfy the participating employer’s required pension contributions shall be transferred to the participating employer only if both of the following apply:
1. The transfer does not jeopardize the tax-exempt status of the prefunding plan’s income.
2. The transfer complies with the requirements under the applicable governmental accounting standards.
C. If the prefunding plan is terminated as described in subsection A, paragraph 4 of this section, the assets attributable to a participating employer’s transfers into the prefunding plan, including any earnings on such assets, after the payment of any obligation of that participating employer owed to the prefunding plan for reasonable administrative costs, shall be transferred to the system to pay the participating employer’s required pension contributions. Any remaining monies in excess of the amount necessary to satisfy the participating employer’s required pension contributions shall be transferred to the participating employer if the transfer complies with subsection B, paragraphs 1 and 2 of this section.