Second Regular Session H.B. 2105
COMMITTEE ON APPROPRIATIONS
SENATE AMENDMENTS TO H.B. 2105
(Reference to House engrossed bill)
Strike everything after the enacting clause and insert:
"Section 1. Section 38-764, Arizona Revised Statutes, is amended to read:
38-764. Commencement of retirement; payment of retirement benefits; lump sum payments
A. Retirement is deemed to commence on a date elected by the member. That date shall not be earlier than the day following the date of termination of employment, the date ASRS receives the member's completed retirement application or the date specified by the member pursuant to subsection I or J of this section.
B. Except as provided in subsection C of this section, all retirement benefits:
1. Are normally payable in monthly installments beginning on the commencement of retirement as prescribed in subsection A of this section.
2. Continue to and include the first day of the month in which death occurs or continue until the date of their cessation in accordance with any optional method of payment that may have been elected.
C. In the case of incapacity of a retired member or contingent annuitant, or in the case of any other emergency, as determined by the board, the board may make the payment to or on behalf of the retired member or contingent annuitant or to another person or persons the board determines to be lawfully entitled to receive payment. The payment is payment for the account of the retired member or contingent annuitant and all persons entitled to payment and, to the extent of the payment, is a full and complete discharge of all liability of the board or ASRS, or both, under or in connection with ASRS.
D. Except as provided in subsection E of this section, at the request of a retired member, a retired member's guardian or a court appointed court‑appointed conservator, the board may pay any increase in retirement benefits or the entire retirement benefit in a lump sum payment based on the actuarial present value of the benefit or the increase in the benefit if the payment of the benefits would result in ineligibility, reduction or elimination of social service programs provided to the member by this state, its political subdivisions or the federal government.
E. The board may pay the entire retirement benefit in a lump sum pursuant to subsection D of this section only if continued membership in ASRS will result in additional requests for lump sum payments based on cost of living cost‑of‑living adjustments or the establishment of minimum benefit awards.
F. If any benefit that is payable as a series of periodic payments amounts to less than a threshold amount determined by the board, the board, in its sole discretion and based on uniform rules it establishes, may order the amount to be paid in a lump sum. A member who receives a lump sum payment pursuant to this subsection remains a member of ASRS and is eligible for the coverage provided pursuant to section 38‑782 and the payment pursuant to section 38‑783, but is not eligible for a benefit increase pursuant to section 38‑767.
G. All distributions of retirement benefits to a member shall be distributed within the required distribution provisions of section 401(a)(9) of the internal revenue code and the regulations that are issued under that section by the United States secretary of the treasury as prescribed in section 38‑775.
H. A member may elect to cancel the effective date of retirement within thirty days of retirement or before the member's receipt of retirement benefits, whichever is later.
I. A member who attains a normal retirement date may retire at any time without terminating employment if the member is employed for less than the hours required for active membership pursuant to section 38‑711, paragraph 23, subdivision (b).
J. If an elected official as defined in section 38‑831 is a member of ASRS and is subject to this article pursuant to section 38‑727, subsection B, the elected official may commence retirement without terminating employment on a date selected by the elected official after submitting a completed retirement application to ASRS.
Sec. 2. Section 38-766.01, Arizona Revised Statutes, is amended to read:
38-766.01. Retired members; return to work; continuation of work
A. Notwithstanding section 38‑766, at a retired member's election, a retired member may return to work and still be eligible to receive retirement benefits if all of the following requirements are satisfied:
1. The retired member has attained the member's normal retirement age.
2. The retired member terminated direct employment with an employer at least three hundred sixty‑five consecutive days before returning to work.
3. If the retired member returns to work as a teacher, the retired member's employment is not subject to the requirements prescribed in sections 15‑536, 15‑538, 15‑538.01 and 15‑539 through 15‑543.
B. Notwithstanding section 38‑766 and subsection A of this section, at a retired member's election, a retired member may return to work or continue working pursuant to section 38‑764, subsection J as a state an elected official who is subject to term limits as defined in section 38‑831 and still be eligible to receive retirement benefits.
C. A retired member's election to return to work under this section is irrevocable for the remainder of the retired member's employment for which the retiree made the election.
D. The retired member shall acknowledge this section in writing and file the acknowledgement with the employer within thirty days after returning to work.
E. An employer of a retired member who returns to work pursuant to this section or who continues working pursuant to section 38‑764, subsection J shall not pay contributions on behalf of the retired member pursuant to section 38‑736, 38‑737 or 38‑797.05.
F. A retired member who returns to work pursuant to this section or who continues working pursuant to section 38‑764, subsection J does not accrue credited service, member service as provided in section 15‑1628, subsection B, paragraph 4, additional account balances, retirement benefits or long‑term disability program benefits pursuant to article 2.1 of this chapter for the period the retired member returns to work or continues working. The period the retired member returns to work or continues working is not eligible for purchase under section 38‑743 or 38‑744."
Amend title to conform