First Regular Session S.B. 1173
PROPOSED AMENDMENT
SENATE AMENDMENTS TO S.B. 1173
(Reference to printed bill)
Page 9, strike lines 29 through 43, insert:
"K. A retired member may become employed by an employer in a designated position and continue to receive a pension if the employment occurs at least twelve months after retirement. The retired member shall not contribute to the fund and shall not accrue credited service. If a retired member becomes employed by an employer in a designated position before twelve months after retirement:
1. Payment of the retired member's pension shall be suspended until the retired member again ceases to be an employee. The amount of pension shall not be changed on account of service as an employee subsequent to retirement.
2. The retired member shall not contribute to the fund and shall not accrue credited service."
Strike page 10
Page 21, between lines 7 and 8, insert:
"Sec. 7. Section 38-895.02, Arizona Revised Statutes, is amended to read:
38-895.02. Payment of pension
The board shall not make a retroactive payment of a pension to a person for a period of more than ninety one hundred eighty days before the date of the person's application for benefits."
Renumber to conform
Line 44, strike "fund" insert "separate account established pursuant to subsection G of this section"
Page 22, line 10, strike "fund" insert "separate account established pursuant to subsection G of this section"
Strike lines 27 through 31, insert:
"D. A retired member or survivor of the plan may elect to purchase individual health care coverage and receive a payment pursuant to this section through the retired member's former employer if that former employer assumes the administrative functions associated with the payment, including verification that the payment is used to pay for health insurance coverage if"
Line 32, strike "the payment is made to the retired member or survivor of the plan." insert "the payment is made to the retired member or survivor of the plan."
Reletter to conform
Line 36, strike "or survivor"
Line 37, strike "retired"; strike "or survivor"
Line 39, strike "or survivor's"
Between lines 39 and 40, insert:
"F. This section does not apply to a survivor of the plan whose deceased spouse becomes a member on or after the effective date of this amendment to this section and who is reemployed and participates in health care coverage provided by the survivor's new employer.
G. The board shall establish a separate account that consists of the benefits provided pursuant to this section. The board shall deposit the benefits provided by this section in the account. The board shall not use or divert any part of the corpus or income of the account for any purpose other than the provision of benefits pursuant to this section unless the liabilities to provide the benefits pursuant to this section are satisfied. If the liabilities to provide the benefits described in this section are satisfied, the board shall return any amount remaining in the account to the employer.
H. Payment of the benefits provided by this section is subject to the following conditions:
1. The payment of the benefits is subordinate to the payment of retirement benefits payable by the plan.
2. The total of contributions for the benefits and actual contributions for life insurance protection, if any, shall not exceed twenty‑five per cent of the total actual employer and employee contributions to the plan, minus the contributions to fund past service credits, after the day the account is established.
3. The contributions by the employer to the account shall be reasonable and ascertainable."
Amend title to conform
STEVE YARBROUGH |