COMMITTEE ON GOVERNMENT
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2157
(Reference to printed bill)
Page 1, between lines 1 and 2, insert:
"Section 1. Section 38-808, Arizona Revised Statutes, is amended to read:
38-808. Pension payments; computation of amounts; termination
A. Plan retirement commences on the first day of the month following the date of the member's retirement or death. Pension payments shall be received on or about the first day of the month next following the member's plan retirement. The last pension payment shall be made as of the last day of the month in which the death of the retired member or the surviving spouse or minor children occurs. Pension payments shall not be made in advance.
B. For a member who becomes a member of the plan before January 1, 2012, the monthly pension shall be equal to one‑twelfth of the following amount:
1. Four per cent percent of the member's average yearly salary multiplied by the member's credited service, not to exceed eighty per cent percent of the member's average yearly salary. This amount shall be reduced if the member takes early retirement pursuant to section 38‑805, subsection C. The amount of reduction is three‑twelfths of one per cent percent for each month the retired member's early retirement age precedes the member's normal retirement age pursuant to section 38‑805, subsection A, except that the reduction shall not be more than thirty per cent percent.
2. A member who meets the requirements for a disability retirement pension shall receive a disability pension equal to four per cent percent of the member's average yearly salary multiplied by twenty years of credited service if the member has ten or more years of credited service, four per cent percent of the member's average yearly salary multiplied by ten years of credited service if the member has five or more years of credited service but fewer than ten years of credited service or four per cent percent of the member's average yearly salary multiplied by five years of credited service if the member has fewer than five years of credited service.
C. The monthly pension of a member who becomes a member of the plan on or after January 1, 2012 shall be equal to one‑twelfth of the following amount:
1. Three per cent percent of the member's average yearly salary multiplied by the member's credited service, not to exceed seventy‑five per cent percent of the member's average yearly salary.
2. A member who meets the requirements for a disability retirement pension shall receive a disability pension equal to three per cent percent of the member's average yearly salary multiplied by twenty‑five years of credited service if the member has ten or more years of credited service, three per cent percent of the member's average yearly salary multiplied by twelve and one‑half years of credited service if the member has five or more years of credited service but fewer than ten years of credited service or three per cent percent of the member's average yearly salary multiplied by 6.25 years of credited service if the member has fewer than five years of credited service.
D. The plan shall make payments pursuant to section 401(a)(9) of the internal revenue code and the regulations that are issued under that section. Notwithstanding any other provision of this plan, beginning January 1, 1987, payment of benefits to a member shall commence no not later than April 1 of the calendar year following the later of:
1. The calendar year in which the member attains seventy and one‑half seventy‑two years of age.
2. The date the member terminates employment.
E. If all pension payments terminate before an amount equal to the member's accumulated contributions has been paid, the difference between the member's accumulated contributions and the aggregate amount of pension payments shall be paid to the person or persons and in such shares as designated by the retired member in writing and filed with the board. If the designated person or persons do not survive the retired member, the difference shall be paid to the estate of the retired member."
Renumber to conform
Page 9, after line 44, insert:
"Sec. 3. Section 38-844, Arizona Revised Statutes, is amended to read:
38-844. Requirements for retirement benefits and disability pensions
A. A member shall be eligible for a normal pension on retirement on or after the member's normal retirement date. Payment of a normal pension shall commence as of the first day of the month following the date of retirement, and the last payment shall be made as of the last day of the month in which the death of the retired member occurs.
B. A member is eligible for an accidental disability pension if the member's employment is terminated by reason of accidental disability. A member is eligible for an ordinary disability pension if the member's employment is terminated before the member's normal retirement date by reason of ordinary disability. A member shall file an application for a disability pension after the disabling incident or within one year after the date the member ceases to be an employee. Timely application for an accidental, catastrophic or ordinary disability pension is a prerequisite to receipt of the pension. Payment of an accidental, catastrophic or ordinary disability pension shall commence as of the first day of the month following the date of retirement or the expiration of a period during which the member is receiving sick leave payments or a temporary disability pension, whichever is later, but not earlier than section 38‑845.02 allows for retroactive payments. The last payment shall be made as of the last day of the month in which the death of the retired member occurs, or if disability ceases before the member's normal retirement date, the first day of the month in which disability ceases.
C. A member is eligible for a catastrophic disability pension if the member's employment is terminated by reason of catastrophic disability. If more than the allowable catastrophic disability pensions are approved by the local boards in a calendar year, from and after December 31 of the following calendar year a member of the system is not eligible to apply for a catastrophic disability pension. On or before January 31, the board of trustees shall report to the president of the senate and the speaker of the house of representatives the number of catastrophic disability pensions that were approved by the local boards in the preceding calendar year. For the purposes of this subsection, "allowable catastrophic disability pensions" means for calendar year 2004, ten, and for subsequent calendar years the number of allowable catastrophic disability pensions allowed in the prior calendar year minus the number of catastrophic disability pensions approved by the local boards in the prior calendar year plus four.
D. Notwithstanding any other provision of this section, no member shall qualify for an accidental, catastrophic or ordinary disability pension if the local board determines that the member's disability results from the following:
1. An injury suffered while engaged in a felonious criminal act or enterprise.
2. Service in the armed forces of the United States that entitles the member to a veteran's disability pension.
3. A physical or mental condition or injury that existed or occurred before the member's date of membership in the system.
E. Accidental or ordinary disability shall be considered to have ceased and an accidental or ordinary disability pension terminates if the member:
1. Has sufficiently recovered, in the opinion of the local board, based on a medical examination by a designated physician or a physician working in a clinic that is appointed by the local board, to be able to engage in a reasonable range of duties within the member's department and the member refuses an offer of employment by an employer in the system.
2. Refuses to undergo any medical examination requested by the local board, provided that a medical examination shall not be required more frequently than once in any calendar year.
F. Sixty months after the award of a catastrophic disability pension, the local board shall reevaluate the member. If the member still qualifies for the catastrophic disability pension, the member is entitled to continue to receive the pension at the reduced amount prescribed in section 38‑845, subsection E. A catastrophic disability shall be considered to have ceased and a catastrophic disability pension terminates if the local board determines that the member has sufficiently recovered and is able to engage in gainful employment based on a medical examination by a designated physician or a physician working in a clinic that is appointed by the local board. After the sixty‑month review, the catastrophic disability shall be considered to have ceased and a catastrophic disability pension terminates if the local board determines that the member has sufficiently recovered and is able to engage in gainful employment based on a medical examination by a designated physician or a physician working in a clinic that is appointed by the local board, except that the medical examination shall not be required more frequently than once in a calendar year. The medical review after the sixty‑month period does not apply after the date the catastrophic disability pensioner would have attained twenty‑five years of service assuming the pensioner remained a member of the system. The local board shall also terminate a catastrophic disability pension if the member refuses to undergo any medical examination requested by the local board. A member whose catastrophic disability pension is terminated may apply for and if eligible is entitled to receive an accidental disability pension as provided in this section.
G. Subsection E of this section does not apply after a disability pensioner's normal retirement date. The amount of a disability pension shall not be recomputed at a disability pensioner's normal retirement date.
H. If accidental or ordinary disability ceases before a retired member attains the member's normal retirement date and the member is reemployed by an employer, the member shall be treated as if the member has been on an uncompensated leave of absence during the period of the member's disability retirement and shall be a contributing member of the system. The pension payable on the member's subsequent retirement shall be determined as provided in section 38‑845.
I. A member shall be eligible for a temporary disability pension if the member's employment is terminated before the member's normal retirement date by reason of temporary disability. Payment of a temporary disability pension shall commence as of the first day of the month following the date of disability or the expiration of a period during which the member is receiving compensation and sick leave payments, whichever is later. The last payment shall be made as of the first day of the month in which either the death of the member occurs or the local board deems the member is no longer under temporary disability, whichever first occurs, provided that no not more than twelve monthly temporary disability payments shall be made in total to the member.
J. If on the expiration of a temporary disability pension the local board finds on application that the member has an accidental or ordinary disability, the member shall be eligible for an accidental or ordinary disability pension, as provided in this section.
K. The system shall make payments pursuant to section 401(a)(9) of the internal revenue code and the regulations that are issued under that section. Notwithstanding any other provision of the system, beginning January 1, 1987 payment of benefits to a member shall commence no not later than April 1 of the calendar year following the later of:
1. The calendar year in which the member attains seventy and one‑half seventy‑two years of age.
2. The date the member terminates employment."
Renumber to conform
Page 13, after line 33, insert:
"Sec. 5. Section 38-890, Arizona Revised Statutes, is amended to read:
38-890. Pensions; commencement and duration
A. A normal retirement pension, an accidental disability pension, a total and permanent disability pension or an ordinary disability pension commences on the first day of the calendar month next following the member's date of retirement. A survivor pension commences on the first day of the calendar month next following the month in which the death causing payment of the pension occurs.
B. Termination of payment of a pension occurs at the end of the calendar month in which the event causing the termination occurred. The payment shall be made for the full month of termination.
C. A change in the amount of a pension occurs on the first day of the calendar month next following the date of the event causing the change.
D. The plan shall make payments pursuant to section 401(a)(9) of the internal revenue code and the regulations that are issued under that section. Notwithstanding any other provision of the plan, beginning January 1, 1987 payment of benefits to a member shall commence no not later than April 1 of the calendar year following the later of:
1. The calendar year in which the member attains seventy and one-half seventy‑two years of age.
2. The date the member terminates employment."
Amend title to conform