Arizona Revised Statutes Title 38. Public Officers and Employees § 38-868. Contributions; member; employer; applicability of article

A. On or before June 30, 2017, a participant as defined in § 38-865.01 may make an irrevocable election to opt out of the defined contribution plan established by this article, which shall be the participant's election for the remainder of the participant's employment with any employer under the system.

B. Beginning July 1, 2017, a participant as defined in § 38-865.01 in the defined contribution plan shall contribute three percent of the participant's gross pensionable compensation by salary reduction that shall be deposited in the participant's annuity account.

C. Each employer of a participant as defined in § 38-865.01 shall annually make a contribution equal to the following percentages of the participant's gross pensionable compensation:

D. If a participant as defined in § 38-865.01 is subsequently covered by the federal old age and survivors insurance system, the participant and the participant's employer may not make any contributions on the participant's behalf pursuant to this section during the period the participant is covered by the federal old age and survivors insurance system. If at a later time the participant is not covered by the federal old age and survivors insurance system through an employer under the system, the participant and the participant's employer shall again be required to contribute on behalf of the employee pursuant to this section.

E. All of the provisions of this article apply to a participant as defined in § 38-865.01.

F. For a participant as defined in § 38-865.01, an employer may choose to pay a portion of the participant's contributions under this section in an amount of not more than the difference between the contribution rate specified under § 38-843 for employees hired on or after January 1, 2012 and before July 1, 2017 and for any employee hired before January 1, 2012.