COMMITTEE ON APPROPRIATIONS
SENATE AMENDMENTS TO H.B. 2553
(Reference to House engrossed bill)
Strike everything after the enacting clause and
insert:
“Section 1. Section 15-121, Arizona Revised Statutes, is amended to read:
15-121. Permitting school employees to participate in federal annuity program and deferred compensation plans; prohibition against use of public funds; penalty
A. Employees of school districts, accommodation school employees, employees of the community college districts, employees of the universities and all other certificated and noncertificated employees of the schools of this state, including those located at state institutions, may participate in the federal tax sheltered annuity plan as provided in 26 United States code section 403, if the governing body approves plans.
B. Upon election by an employee to participate in the federal annuity plan, the governing board of a school district, the county school superintendent, the community college district governing board, the Arizona board of regents or other governing body or employer of the employee shall invest an amount to be reduced from the regular annual salary of the employee, as the employee may authorize, in annuities as provided in 26 United States code section 403.
C. An employee may also participate in a deferred compensation plan approved by the governing body and may authorize the necessary deductions from his regular salary.
D. The amount to be invested shall be determined by the employee not less than fifteen days prior to his first payday in the school year, or at any time during the school year at the option of the governing body. The employing body or county school superintendent shall assume no responsibility other than to make the requested payments during the actual time of the employment of the employee. The employer shall transfer to the fund manager the employee contributions within ten working days after each and every payroll date. Contributions transferred after that date shall include a penalty of six per cent a year for each day the contributions are late, the penalty to be paid by the employer. If the employee changes his employment to another school or district, he may authorize his new employer to continue the payments if the governing body approves. State, county, district or other public funds shall not be used in the purchase of any annuity or payment of any deferred compensation authorized by this article.”
Amend title to conform