Ariz. Admin. Code § 2-8-1006

Current through Register Vol. 30, No. 25, June 21, 2024

Section R2-8-1006 - Prior Service Purchase Cost for New Employers

A. Pursuant to A.R.S. § 38-729, upon the effective date of joining the ASRS, an Employer may elect to purchase service credit for a period of employment prior to the effective date of joining the ASRS for employees Engaged To Work for the Employer on the effective date of joining the ASRS who are members of the ASRS as of the effective date of joining the ASRS.

B. The ASRS may provide to a potential Employer an estimated cost to purchase service credit pursuant to this Section. In order for the ASRS to estimate the cost to purchase service pursuant to this Section, a potential Employer shall provide the following information to the ASRS for each employee of the potential Employer who is Engaged To Work for the potential Employer and for whom the potential Employer intends to purchase service credit pursuant to this Section:

1. The employee's full name;

2. The employee's date of birth;

3. The employee's Social Security number;

4. The employee's current salary; and

5. The date the employee began employment with the potential Employer.

C. An Employer who elects to purchase service credit pursuant to this Section shall submit the following information for each member for which the Employer is purchasing service credit:

1. Member's full name;

2. Member's date of birth;

3. Member's Social Security number;

4. Member's date of employment;

5. Documentation showing the Member is Engaged To Work for the Employer as of the effective date of joining the ASRS;

6. Member's current salary as of the effective date of joining the ASRS; and

7. The number of years the Employer is electing to purchase for the member pursuant to this Section or the dollar amount the Employer is electing to pay to purchase service for the member pursuant to this Section.

D. The cost to purchase service credit pursuant to this Section shall be determined using an actuarial present value calculation.

E. An Employer who elects to purchase service credit pursuant to this Section shall submit payment for the full cost of the service purchase to the ASRS within 90 days of the date of notification by the ASRS.

F. If an Employer who elects to purchase service credit pursuant to this Section does not submit payment for the full cost of the service purchase within 90 days of the date of notification, the Employer is not eligible to purchase service credit pursuant to this Section.

G. An employer may not purchase service credit pursuant to this Section for a time period for which the employee is eligible to receive retirement benefits from another public employee retirement system.

H. For purposes of this Section, "another public employee retirement system" means the same as in R2-8-505.

Ariz. Admin. Code § R2-8-1006

Adopted by final rulemaking at 24 A.A.R. 3407, effective 2/4/2019. Amended by final rulemaking at 28 A.A.R. 1257, effective 7/17/2022.