Ariz. Admin. Code § 6-3-1808

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

Section R6-3-1808 - Payment on Account of Retirement

A. Pension Defined. Pension, as used in A.R.S. §§ 23-791 and 23-624, does not include survivor's benefit payments or other periodic payment which bears no direct relationship to the level of prior remuneration or the length of past employment of the claimant.

B. Weekly Deduction.

1. The Department shall determine the amount of pension attributed to a week by dividing the pension recipient's monthly pension by 4.333 and rounding the result to the lowest dollar.

2. When the recipient contributed at least 45% of the amount for the pension, the Department shall determine the deductible amount by multiplying the weekly pension by .45 and rounding the result to the lowest dollar.

C. Effective Date. The effective date of a reduction in benefits required by A.R.S. § 23-791(A) begins with the 1st week in which either of the following occurs:

1. The recipient receives a pension payment; or

2. The recipient receives a determination or official notification from the pension source that provides the effective date and the amount of the pension payment and the payment will be made for the week in question.

D. Retroactive Payments.

1. An overpayment shall not result from retroactive pension payments for weeks prior to receipt of official notification, nor shall an overpayment result from any retroactive recomputation of the pension payment, unless the recipient fails to disclose the recomputation.

2. The Department shall not pay retroactive benefits previously denied due to the claimant's receipt of a pension payment that was made in error and must be repaid.

E. Lump-sum Payments. The Department shall:

1. Allocate a pension received in 1 lump-sum payment to the week in which the payment is received;

2. Treat a yearly lump-sum pension payment as a periodic payment and allocate the payment over 52 weeks;

3. Disregard a lump-sum or yearly lump-sum payment that is rolled over into a non-taxable retirement plan in accordance with provisions of the Internal Revenue Code; and

4. Disregard a lump-sum payment or other type payoff made because of a separation occurring before the time the recipient meets the length of service terms and age requirement established by the pension plan even if the payment includes pension funds.

Ariz. Admin. Code § R6-3-1808

Former Regulation 30-7; Repealed effective February 18, 1977 (Supp. 77-1). Adopted as an emergency effective June 18, 1979, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 79-3). Former emergency adoption now adopted and amended effective November 7, 1979 (Supp. 79-6). Amended effective March 5, 1982 (Supp. 82-2). Amended effective July 22, 1997 (Supp. 97-3).