|
|
ARIZONA HOUSE OF REPRESENTATIVESFifty-sixth Legislature Second Regular Session |
House: WM DP 9-0-0-1 |
HB 2203: public retirement plans; liabilities; administration
Sponsor: Representative Livingston, LD 28
Caucus & COW
Overview
Transfers the total amount of assets to cover the accrued liability from a previous employer under the Public Safety Personnel Retirement System (PSPRS) to the subsequent employer under the same retirement plan leaving any unfunded or overfunded amounts with the employer in which it was incurred. Exempts all trust funds administered by the board from becoming abandoned or unclaimed property and allows participants in the defined contribution plan to take loans on accumulated assets in their annuity account.
History
PSPRS was established in 1968 as a uniform, consistent and equitable statewide program for public safety personnel who are regularly assigned hazardous duty in the employ of Arizona or a political subdivision. This program provides for municipal firemen and policemen, employees of the Arizona highway patrol and other public safety personnel in Arizona (A.R.S. § 38-841).
The Arizona Department of Administration and the Treasurer of each county and participating city and town transfer to the board the employer contributions provided within 10 working days after each payroll date. For each day that the contributions are late, there is currently a 10 percent penalty per annum, compounded daily (A.R.S. § 38-840.04).
If a member's employment is terminated with an employer and participates with PSPRS, the total liability under the system associated with the member's service with the employer remains with the employer (A.R.S. § 38-843).
A.R.S. § 38-867 prohibits participants in the PSPRS defined contribution plan from taking loans on any portion of the accumulated assets in the participant's annuity account.
Provisions
1. Requires the transfer of the total amount of assets to cover the accrued liability earned from a previous employer to the subsequent employer, in the case that the member transfers from one employer to another under PSPRS and leaves any unfunded or overfunded amounts with the employer in which it was incurred. (Sec. 2, 6)
2.
Modifies the penalty for late
contributions to be compounded annually. (Sec. 1)
3. Exempts all trust funds administered by the board from becoming abandoned or unclaimed property. (Sec. 3)
4. Mandates the board to adopt policies for monies presumed to be abandoned, including requirements for the notification of the presumed owner and for distributing the monies if the owner establishes an entitlement in the monies. (Sec. 3)
5. Classifies monies in the retirement plans and system administered by the board as abandoned for two years after:
a) the date of the distribution or attempted distribution of the monies;
b) the date of the required distribution as stated in the plan of the trust agreement that governs the plan; or
c) if determinable by the holder, the date specified in the income tax laws of the United States by which distribution of the monies must begin in order to avoid a tax penalty. (Sec. 3)
6. Allows a participant of the defined contribution plan to take loans on any amount of the accumulated assets in their annuity account with IRS limits. (Sec. 4)
7. Expands the definition of eligible group under the 401a supplemental plan to include the elected officials' defined contribution retirement system and the public safety personnel defined contribution retirement plan. (Sec. 7)
8. Contains a retroactivity clause. (Sec. 9)
9. Makes technical and conforming changes. (Sec. 1-6, Sec. 8)
10.
11.
12. ---------- DOCUMENT FOOTER ---------
13. HB 2203
14. Initials VP/MG Page 0 Caucus & COW
15.
16. ---------- DOCUMENT FOOTER ---------