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REFERENCE TITLE: technical correction; EORP; plan termination |
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State of Arizona Senate Fifty-second Legislature Second Regular Session 2016
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SB 1254 |
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Introduced by Senator Lesko
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AN ACT
amending section 38-814, Arizona Revised Statutes; relating to the elected officials' retirement plan.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 38-814, Arizona Revised Statutes, is amended to read:
38-814. Termination of plan
A. If the plan terminates, each member's accrued benefits to the date of termination become one hundred per cent percent nonforfeitable to the extent funded. After provision is made for all expenses of the plan, including expenses of liquidation, the assets of the plan shall be allocated by the payment or provision for the payment of benefits in the following order of preference:
1. To pay each elected official and nonretired former elected official an amount equal to his the elected official's or nonretired former elected official's accumulated contributions.
2. To continue to pay pensions to retired members or their beneficiaries.
3. To provide for potential rights of elected officials and former elected officials on an equitable and nondiscriminatory basis according to generally accepted actuarial principles.
4. To pay any excess to this state.
B. The allocations in subsection A of this section may be implemented through the existing trust, a new trust instrument for that purpose or the purchase by the board of insurance company contracts, or by a combination of these methods. An elected official has no rights or claims on the plan or this state beyond the capacity of the assets held by the board to provide benefits in accordance with subsection A of this section.
C. If the allocations produce a pension of less than twenty‑five dollars per month for any person, the board may pay a lump sum of actuarial equivalent value in lieu of the pension.