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Senate Engrossed |
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State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
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CHAPTER 79
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SENATE BILL 1194 |
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AN ACT
amending title 38, chapter 5, article 2, Arizona Revised Statutes, by adding section 38‑751; relating to the Arizona State Retirement System.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 38, chapter 5, article 2, Arizona Revised Statutes, is amended by adding section 38-751, to read:
38-751. Nonparticipatory employer liability allocation; definitions
A. ASRS shall allocate a liability to an employer that is no longer participating in ASRS if that nonparticipation is based on any of the following:
1. The character of the employer changes from a public entity to a private entity.
2. An employer, other than this state or a charter school, files for bankruptcy or otherwise dissolves.
3. An employer is no longer participating.
4. For this state, the character of a state agency, board or commission changes from public to private.
B. ASRS shall determine the schedule and method of payment of the allocated liability.
C. The liability allocated to an employer under this section is equal to the sum of the following:
1. The plan employer actuarial accrued liability multiplied by the plan total deficit percentage.
2. The LTD program employer actuarial accrued liability multiplied by the LTD program total deficit percentage.
D. this section does not permit an employer to alter the irrevocable agreement approved by the board under section 38-729.
E. For the purposes of this section:
1. "LTD program" means the program established by article 2.1 of this chapter.
2. "LTD program employer actuarial accrued liability" means the value of all of the employer's open LTD program claims as of the nonparticipation date plus the value of any LTD program claims that employees of the employer file within twenty-four months after the nonparticipation date and that are approved by ASRS.
3. "LTD program total deficit percentage" means the total LTD program actuarial accrued liabilities minus the total market value of LTD program assets divided by the total LTD program actuarial accrued liabilities, as of the actuarial valuation performed immediately preceding the nonparticipation date. If the percentage is less than zero, the ltd program total deficit percentage is zero.
4. "Nonparticipation date" means the date on which the employer is no longer participating in ASRS.
5. "Plan" means the retirement plan established by this article.
6. "Plan employer actuarial accrued liability" means the plan's actuarial accrued liability for all benefits provided under this article, including benefits established in section 38-783, for the employer's active, inactive or retired members as of the actuarial valuation performed immediately preceding the nonparticipation date.
7. "Plan total deficit percentage" means the plan's actuarial accrued liability for all benefits provided under this article, including benefits established in section 38‑783, for all active, inactive or retired members minus the market value of total plan assets divided by the plan's actuarial accrued liability for all benefits provided under this article, including benefits established in section 38-783, for all active, inactive or retired members as of the actuarial valuation performed immediately preceding the nonparticipation date. If the percentage is less than zero, the plan total deficit percentage is zero.
Sec. 2. Effective date
Section 38‑751, Arizona Revised Statutes, as added by this act is effective from and after January 1, 2013.
APPROVED BY THE GOVERNOR MARCH 26, 2012.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MARCH 26, 2012.