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Arizona Revised Statutes Title 38. Public Officers and Employees § 38-749. Employer termination incentive program; employer payment of actuarial cost; definition

Current as of January 01, 2025 | Updated by Findlaw Staff

A. If a termination incentive program that is offered by an employer results in an actuarial unfunded liability to ASRS, the employer shall pay to ASRS the amount of the unfunded liability. ASRS shall determine the amount of the unfunded liability in consultation with its actuary.

B. An employer shall notify ASRS if the employer plans to implement a termination incentive program that may affect ASRS funding.

C. If ASRS determines that an employer has implemented a termination incentive program that results in an actuarial unfunded liability to ASRS, ASRS shall assess the cost of the unfunded liability to that employer. If the employer does not remit full payment of all monies due within ninety days after being notified by ASRS of the amount due, the unpaid amount accrues interest until the amount is paid in full. The interest rate is the interest rate assumption that is approved by the board for actuarial equivalency for the period in question to the date payment is received.

D. For the purposes of this section, “termination incentive program”:

1. Means a total increase in compensation of thirty per cent or more that is given to a member in any one or more years before termination that are used to calculate the member's average monthly compensation if that increase in compensation is used to calculate the member's retirement benefit and that increase in compensation is not attributed to a promotion.

2. Means anything of value, including any monies, credited service or points that the employer provides to or on behalf of a member that is conditioned on the member's termination except for payments to an employee for accrued vacation, sick leave or compensatory time unless the payment is enhanced beyond the employer's customary payment.

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Cite this article: FindLaw.com - Arizona Revised Statutes Title 38. Public Officers and Employees § 38-749. Employer termination incentive program; employer payment of actuarial cost; definition - last updated January 01, 2025 | https://codes.findlaw.com/az/title-38-public-officers-and-employees/az-rev-st-sect-38-749/

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