COMMITTEE ON INSURANCE AND RETIREMENT
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2050
(Reference to printed bill)
Page 7, strike lines 24 through 44
Strike pages 8 through 10
Page 11, strike lines 1 through 17
Renumber to conform
Line 30, after "eligible" insert "retirement"; after "plan" insert "as defined in section 401(a)(31)(E) of the United States internal revenue code"
Line 33, after the second "account" insert "as defined in section 408(a) of the United States internal revenue code"
Page 12, after line 16, insert:
"Sec. 8. Enrollment in ASRS; service purchase; definitions
A. An ASRS employer shall enroll an eligible employee in ASRS and the eligible employee may have the previous period of continuous employment credited to the employee's service credit for pension purposes if both of the following conditions are met:
1. The eligible employee elects to purchase eligible service credit within ninety days after the effective date of this act.
2. The eligible employee pays into the ASRS depository the amounts prescribed in this section within one hundred eighty days after the effective date of this act.
B. If the eligible employee does not meet the requirements of subsection A of this section, the eligible employee may purchase the eligible service credit at a later date pursuant to section 38‑743, Arizona Revised Statutes.
C. The eligible employee who is purchasing service credit pursuant to subsection A of this section shall pay the member contributions that would have been contributed by the employer on the employee's behalf as prescribed in section 38‑736, Arizona Revised Statutes, plus interest, equal to the interest rate assumption approved by the ASRS board for actuarial equivalency, through the date of deposit in the ASRS depository. If the eligible employee pays less than the amount required by this subsection, ASRS shall proportionately reduce the amount of service credited to the member's account and the eligible employee may purchase the remaining amount of eligible service credit at a later date pursuant to section 38-743, Arizona Revised Statutes. For an eligible employee as defined in subsection F, paragraph 2, subdivision (a) of this section, interest is calculated from the date of the return of the employee's and employer's contributions to the employer through the date of the deposit in the ASRS depository. If an eligible employee as defined in subsection F, paragraph 2, subdivision (c) of this section transfers the balance of the employee's account under the defined contribution plan established pursuant to section 38-955, Arizona Revised Statutes, as repealed by this act, to ASRS and the amount transferred is less than the amount required to purchase the employee's service credit, the eligible employee may elect either to pay the difference or to accept a reduced amount of service credits.
D. The employer whose eligible employee is purchasing service credit pursuant to subsection A of this section shall pay the employer contributions that would have been contributed by the employer on behalf of the member as prescribed in section 38-737, Arizona Revised Statutes, except that the employer is required to pay for only the amount of service credit the eligible employee elects to purchase. The employer also shall pay interest, equal to the interest rate assumption approved by the board for actuarial equivalency, through the date of deposit into the ASRS depository. The employer shall pay the amounts prescribed in this subsection within twelve months after the eligible employee elects to purchase eligible service credit pursuant to subsection A, paragraph 1 of this section.
E. The employer whose eligible employee is purchasing service credit pursuant to subsection A of this section may elect to pay all or a portion of the interest due on the member contributions as prescribed in subsection C of this section.
F. For the purposes of this section:
1. "ASRS" means the Arizona state retirement system.
2. "Eligible employee" means one of the following:
(a) An employee who is currently employed by an ASRS employer, who was previously enrolled in ASRS but was disenrolled because employee was not included in agreements providing for the employee's coverage under the federal old age and survivors insurance system as required in section 38‑727, Arizona Revised Statutes, in effect before the effective date of this act, and who had the member and employer contributions to ASRS returned to the employer and the employee's service credit reduced.
(b) An employee who is currently employed by an ASRS employer and who was not enrolled in ASRS because the employee was not included in agreements providing for the employee's coverage under the federal old age and survivors insurance system as required in section 38‑727, Arizona Revised Statutes, in effect before the effective date of this act.
(c) An employee who is currently employed by an ASRS employer and who was participating in the defined contribution plan established pursuant to section 38-955, Arizona Revised Statutes, as repealed by this act."
Amend title to conform