COMMITTEE ON BANKING AND INSURANCE
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1442
(Reference to Senate engrossed bill)
Page 1, line 25, strike "twenty thirty" insert "twenty"; after "years" insert ", except as provided in subsection I of this section,"
Page 4, between lines 29 and 30, insert:
"I. For the purposes of calculating unfunded liability amortization payments pursuant to subsection B of this section for fiscal year 2018‑2019 and each fiscal year within the amortization period, an employer may make a one‑time election to request that the board use a closed period of not more than thirty years if the employer meets both of the following requirements:
1. The employer's funded ratio is less than the system's reported aggregate funded ratio as of June 30, 2016.
2. The employer makes a written request for the longer amortization period to the administrator of the board within ninety days after the effective date of this amendment to this section.
J. For the purposes of subsection I of this section, employer does not include this state or any state agency."
Reletter to conform
Page 5, between lines 37 and 38, insert:
"(iii) An employee who is hired on or after July 1, 2018, who is in a designated position as defined in section 38‑881, paragraph 13, subdivision (g), who fails to make an irrevocable election and is automatically enrolled pursuant to section 38‑881.01 in the defined contribution plan established pursuant to this article and who was not an active, an inactive or a retired member of the corrections officer retirement plan or a member of the corrections officer retirement plan with a disability on June 30, 2018."
Page 7, line 22, after the period insert:
"J."
Between lines 28 and 29, insert:
"K. If a participant as defined in section 38‑865, paragraph 7, subdivision (b) dies before completing three years of service, the employer contributions are immediately fully vested."
Page 9, line 8, strike "38-886.01" insert "38‑886"
Line 11, after the period insert "A participant is not eligible for a disability benefit under this article for an ordinary disability as defined in section 38‑881."
Line 22, strike "38‑886.01" insert "38‑886, except for an ordinary disability,"
Line 31, strike the first "the" insert "its"; after "actuary" strike remainder of line
Line 32, strike "retirement system"
Line 40, after "spouse" insert "; eligible child"
Page 10, line 2, after "spouse" insert "or any eligible child"
Line 3, after "spouse" insert "or eligible child"
Line 13, strike the second "the" insert "its"; strike "for the"
Line 14, strike "public safety personnel retirement system"
Line 15, after "spouse" insert "or eligible child"
Page 17, line 32, strike "plan" insert "public safety personnel defined contribution retirement plan established pursuant to article 4.1 of this chapter"
Page 27, after line 42, insert:
"Sec. 15. Section 38-888, Arizona Revised Statutes, is amended to read:
38-888. Pension to the surviving spouse of a member
A. The surviving spouse of a deceased member is entitled to receive a surviving spouse's pension if the spouse was married to the member on the date of the member's death. Payment of a surviving spouse's pension commences as of the last day of the month following the member's date of death. The last payment shall be made as of the last day of the month in which the surviving spouse's death occurs. The amount of a surviving spouse's pension is forty per cent percent of the deceased member's average monthly salary. The surviving spouse shall file a written application with the plan in order to receive the survivor benefit.
B. The surviving spouse of a deceased member who is killed in the line of duty or dies from injuries suffered in the line of duty is entitled to receive a monthly amount equal to the deceased member's average monthly benefit compensation. For the purposes of this subsection, "killed in the line of duty" means the decedent's death was the direct and proximate result of physical injuries incurred in the performance of the decedent's public safety duties and does not include suicide.
C. If a deceased member does not have an eligible surviving spouse or the pension of the eligible surviving spouse is terminated, each eligible child is entitled to a child's pension as calculated pursuant to section 38‑904."
Renumber to conform
Page 28, line 12, strike "thirty" insert "twenty"; after "years" insert ", except as provided in subsection M of this section,"
Page 31, between lines 38 and 39, insert:
"M. For the purposes of calculating unfunded liability amortization payments pursuant to subsection A of this section for fiscal year 2018‑2019 and each fiscal year within the amortization period, an employer may make a one‑time election to request that the board use a closed period of not more than thirty years if the employer meets both of the following requirements:
1. The employer's funded ratio is less than the plan's reported aggregate funded ratio as of June 30, 2016.
2. The employer makes a written request for the longer amortization period to the administrator of the board within ninety days after the effective date of this amendment to this section.
N. For the purposes of subsection M of this section, employer does not include this state, any state agency or the judiciary."
Reletter to conformy
Amend title to conform