-------------------------------------------------- ¦ REFERENCE TITLE: ASRS; veterans; service credits ¦ -------------------------------------------------- ¦ ¦ ¦ ¦ ¦ ¦ ¦ State of Arizona ¦ ¦ Senate ¦ ¦ Forty-fifth Legislature ¦ ¦ First Regular Session ¦ ¦ 2001 ¦ -------------------------------------------------- ¦ SB 1257 ¦ -------------------------------------------------- ¦ Introduced by ¦ ¦ Senator Bundgaard ¦ --------------------------------------------------
AN ACT
PROVIDING FOR THE RECALCULATION OF THE COSTS OF REDEEMED ACTIVE MILITARY SERVICE BY CERTAIN MEMBERS OF THE ARIZONA STATE RETIREMENT SYSTEM; MAKING AN APPROPRIATION.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Recalculation of costs of redeemed active military service; refund
A. If a retired member or a deceased retired member whose beneficiary is receiving benefits on account of a deceased retired member of the Arizona state retirement system received credited service for active military service from the Arizona state retirement system before July 20, 1996, the Arizona state retirement system shall recalculate the cost of that credited service as provided in this section effective retroactively to the date of receipt of the credited service.
B. If an active member of the Arizona state retirement system received credited service for active military service from the Arizona state retirement system before July 20, 1996, the Arizona state retirement system shall recalculate the cost of that credited service as provided in this section effective retroactively to the date of receipt of the credited service.
C. The Arizona state retirement system shall determine the amount a member described in subsection A or B of this section would have paid for credited service for active military service on or after July 20, 1996.
D. The Arizona state retirement system shall subtract the amount determined pursuant to subsection C of this section from the amount the member actually paid for credited service for active military service. If the difference is greater than zero and notwithstanding any other law, the Arizona state retirement system shall refund the difference to the active member, the retired member or the retired member's beneficiary. The Arizona state retirement system shall pay a refund pursuant to this subsection to an active member at the time it makes retirement benefit payments.
E. The Arizona state retirement system shall pay interest on any amounts refunded pursuant to this section. The interest shall be compounded annually at the interest rate assumption approved by the board from time to time for actuarial equivalency.
F. Before retirement, an active member who is entitled to a payment pursuant to subsections D and E of this section may apply the amount of the payment to a purchase of additional active military service pursuant to section 38-745, Arizona Revised Statutes, if the member is eligible to purchase that service.
Sec. 2. Member notification; publication
The Arizona state retirement system shall notify members who might be eligible for a refund pursuant to section 1 of this act by publishing a summary of the provisions of section 1 of this act in the following publications according to the following schedule:
1. In four successive Arizona state retirement system quarterly newsletters immediately following the effective date of this act.
2. In two successive annual statements for individual members immediately following the effective date of this act.
Sec. 3. Appropriation; purpose
The sum of $50,000 is appropriated from the Arizona state retirement system administration account in fiscal year 2001-2002 to the Arizona state retirement system for the purpose of defraying the cost of making the recalculations prescribed by section 1 of this act.