Arizona Laws 38-954. Vesting
A. Employee contributions and earnings on employee contributions are immediately vested.
Terms Used In Arizona Laws 38-954
- Eligible group: means any of the following:
(a) The Arizona state retirement system established by article 2 of this chapter. See Arizona Laws 38-951
- Employer: means an agency or department of this state or an agency or department of a political subdivision of this state that has employees in an eligible group. See Arizona Laws 38-951
- Plan: means a defined contribution plan authorized by this article. See Arizona Laws 38-951
B. Employer matching contributions, if any, and the earnings on employer matching contributions are vested and the employee is entitled to receive employer matching contributions and earnings on those contributions as follows:
1. If the employee has less than one year of credited service in an eligible group, zero per cent.
2. If the employee has at least one year but less than two years of credited service in an eligible group, twenty per cent.
3. If the employee has at least two years but less than three years of credited service in an eligible group, forty per cent.
4. If the employee has at least three years but less than four years of credited service in an eligible group, sixty per cent.
5. If the employee has at least four years but less than five years of credited service in an eligible group, eighty per cent.
6. If the employee has at least five years of credited service in an eligible group, one hundred per cent.
C. All nonvested employer contributions and earnings on those contributions may be used to pay for the administrative costs of the plan.